When you take out a hard money loan to flip a house, you know you’ll be making improvements and renovations – but you have to choose wisely, or your entire profit will get eaten up by the things you add to the space.
So how do you figure out which renovations are smart ones, and which ones are a waste?
Here’s what you need to know.
What Are Smart Renovations?
Smart renovations are those that bring you the most “bang for your buck.” You probably don’t want to gut a kitchen and put in all marble countertops, energy efficient appliances, glass cabinetry and a brand-new floor, because that’s going to cost a tremendous amount of money. (The average amount people spend on a major kitchen renovation is over $60,000.)
You can’t do all that and still make a profit – you won’t get a good enough return on your investment to make it worth your while.
Smart renovations are typically small, affordable things that will exponentially increase a house’s value. Think about things like:
- Refinishing kitchen cabinets (not replacing them)
- Adding granite countertops
- Replacing key appliances
- Updating light fixtures and faucets
- Pulling up carpet and replacing the flooring
Small “tweaks” can make a bigger impact – and in many cases, they keep the house you’re flipping within the neighborhood’s spectrum, too. (Not everyone wants to buy the nicest, most expensive and most exceptionally appointed house on the block, especially if it’s out of the neighborhood’s league.)
Are You Looking for a Hard Money Loan to Flip a House or Buy a Rental Property?
Paces Funding is a hard money lender offering hard money loans to purchase and renovate non-owner occupied residential and commercial properties throughout the Atlanta, Nashville, Florida, or the North and South Carolina metropolitan areas. Our application process for hard money loans is easy. Just fill out this very simple online form and you will be contacted shortly. Unlike other lenders, the window between applying and funding is very small. We have funded properties in as a little as one day, but typically funding hard money loans takes about 7 to 10 days.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.