Investing in real estate can be a lucrative opportunity for landlords who plan to buy distressed properties with potential, fix them up, and then flip them for resale. Alternatively, landlords may choose to upgrade a rental property that they already own with new amenities and features to attract new tenants.
Regardless of what work you plan to carry out on the rental property, the right financing solution can make or break the investment. Instead of going through a bank, many landlords are opting for hard money loans to finance their rental property. Here are some tips that can help you take advantage of such an opportunity.
What to Look For
A property doesn’t necessarily have to be cheap for it to be an ideal fix and flip opportunity. Buying a property in a bad neighborhood may require more work than necessary and might not sell for a profit. For new house flippers, it’s good to look for properties without major structural damage that requires cosmetic repairs only.
There should ideally be other facilities close by, such as good schools, public transportation, shops, and other amenities. Some of these properties may be located close to other high-demand areas.
Make a Plan
When you’ve identified a property, you need to put a general plan of what repairs or upgrades you plan to make. This will help you draw up an accurate budget for the renovations and set a reasonable selling price with a suitable margin. When making your plan, it’s best to carry out some research about what buyers are looking for in the area and what features will get you maximum returns.
A plan can also help you set a budget that meets realistic expectations about the end results—it’ll help you stick to those goals too.
Get the Right Financing
Getting the right financing for a fix and flip project is critical. If you find a distressed property on the market, chances are that the owner is willing to get rid of it quickly. Hard money loans give you access to funding quickly without having to fill in copious amounts of paperwork. That way, you can secure the real estate opportunity before it goes off the market.
Additionally, if you’re an investor with a poor credit history, you can get access to hard money loans. This is because the lender will evaluate the property and your plan to renovate—it not your credit history. Often, loan officers are also willing to tweak the terms of the funding depending on your case.
Are you looking to finance a fix and flip project with private money loans in the United States? Find top-rated financing solutions at Insula Capital Group. We offer attractive loan programs for single-family homes, multifamily buildings, fix & flip properties, and new construction projects.
We’re dedicated to helping business owners and real estate investors get access to low-cost capital at competitive rates nationwide. Reach out to us today with information about your hard money real estate loan, and we’d be happy to help.