How to Make Fix and Flip Part of Your Personal Investment Plan

Fix and flip loans. They are everywhere. on HGTV, on the news, everywhere. You can’t turn on your computer without seeing them mentioned.

“They sound great,” you think. “But can they really revamp my personal investment plan?”

If you want to make fix and flip loans part of your income, read on.

Last year people made an average of $68K from fix and flipping.

Why Fix and Flip?

There have been a lot of fads over the years. In the ’90s everyone went nuts over Beanie Babies. Some even spent their hard-earned dough trying to snag and sell the rare ones. Then Beanie Babies fell out of fashion.

“Will fix and flipping fade out, too?” you wonder. We understand. This is your personal investment plan and you don’t want to tie it to something that could fade out.

But the truth is flipping may never go the way of the Beanie Babies Dodo. Why? Because at the heart of flipping is fixing. There is always going to be a property that needs a little love. And there is always a way to make that love work.

Just last year people made on average $68K from fixing and flipping alone. Who knows what flipping will bring for the future!

Below we’re going to go over how to make fix-and-flip loans part of your personal investment plan.

Do Your Research

One of the first things you should do is research the area you’re going to fix and flip in. This means looking into things like:

• What other properties have flipped for in your area
• Demographic information
• Real estate trends and fads
• Area development
• How long a property is on the market before selling

Once you’ve gathered and analyzed all the data you’ll need to write a business plan.

The Importance of a Business Plan

You need to write a business plan for two solid reasons: You need to show lenders you’re serious, and that you have done the appropriate research and aren’t flying blind.

So what should your business plan include?

• Your goals: What do you plan to get out of fix and flip loans? How will you achieve that?
• Properties: What are you planning on fix and flipping? Single family homes? Store fronts? Apartments?
• Area: Where are you planning to fix and flip?
• Who will do the actual fixing? Will it be yourself or a contractor?
• Timeline: How long will the fix and flip take?
• Number of projects: How many will you do at once? What about during the year?
• Expected ROI: What do you expect to get back?

One of the most important parts of your business plan is how you plan to find homes. You need to outline and detail how you plan on finding fix and flip properties. Will go with a realtor to start? Or just check out online websites for leads? Whatever you plan to do, write it down.

Not sure how to start? Check out Fit Small Business to find tools to help you find your first property.

Fix and flip loans last 1-3 years so you’re not locked in for decades.

Consider Fix and Flip Loans from Alternative Lenders

“Couldn’t I go to my bank?” No one is saying you can’t, but there are a few reasons why alternative lenders might work better.

First, banks like sure things. It’s like Hollywood and movie remakes. The reason we keep seeing remake after remake is because Hollywood knows it’ll get butts in chairs. New movie ideas can’t guarantee that.

It’s the same with banks. They only like to fund loans they know will make them richer in the end. You might have a great fix-and-flip property, but if they don’t see it right away, they may say no.

Second, banks live for interest. The process of fixing and flipping a house usually takes a year or less. Banks don’t like it if you pay off loans early because it means they’ll lose years of interest. So if you get a loan through a bank you’ll be locked in for 15-30 years.

Alternative lenders, on the other hand, have loans especially made for fix-and-flippers like you. The fix-and-flip loan will last anywhere from 1-3 years.

The best part is that because these loans are usually short, lenders know you’re planning to pay it off soon. They expect you to.

Assemble Your Team

The last step is to assemble your go-to people. These are the people you’ll need at one time or other during the fix-and-flip process. They are:

• Accountant: It’s always good to have one on hand to deal with fix-and-flip taxes and other money-related matters.
• Realtor: The person who will give bottom-line facts about the area you’re flipping in.
• Architect: They’re generally used for larger projects that need a “page 1” rewrite. Still, they’re a good to know. They can check in and see if the design fits the homes style and is structurally sound.
• General Contractor: Your right hand handyman. They’ll oversee all the work being done at the property. They’ll also ensure everything is finished on time and within budget.
• Landscaper: They take care of curb appeal and make sure the property’s lawn is in good shape.
• Handyman: Handymen are perfect for smaller jobs or homes that only need a few things done. They can save you money and you won’t have to DIY.
• Assistant: As you gain experience and start doing more than one project at once you might need some help. They can keep things organized so you can focus on the bigger picture.

Get a Fix and Flip Loan With Gauntlet Funding Today!

If you want a fix and loans to be a part of your personal investment plan, look no further than Gauntlet Funding.

Gauntlet Funding offers the most competitive rates in the market for prime borrowers with no prepayment penalties. We are an organized and transparent system that will get you funded in little time after you have undergone the approval process! Contact Gauntlet Funding today at (631) 465-2161.

 How to Make Fix and Flip Part of Your Personal Investment Plan | Gauntlet Funding-Melville, NY