New York Fix and Flip Loans. You never thought you'd consider them. But ever since last weekend they are all you can think about. You were walking your dog when you spotted it: your childhood home.
It was once the best house in the neighborhood. Now, with all the cracking paint and broken front steps, it looks like the worst. You know it has the potential to be a great home. You also know that with the right love and renovations, it has to potential to make bank.
So how can you get the right New York fix and flip loans? Read on to find out.
The first thing any fix and flipper should do is research the area. This means seeing what the other houses in the neighborhood have sold for. This is also the perfect time to see what your old home last sold for.
Zillow has a great tool for this. Just plug in the address and you'll get a report of the home's worth.
Now that you've assessed what the house was worth, it's time to assess what it could be worth. This means getting an inspector/contractor to see what needs to be fixed and renovated.
Home Adviser has many reviews for inspectors in your area. They can also help you find a contractor if you need one.
"But wouldn't you do this step later? After a seller accepts an offer?" Typically, yes - if this were a move-in-ready home you planned to move into once you bought it. But since you're flipping the house, you need to do this early. Why? For a few reasons.
The biggest is cost. It's hard to know how much your fix and flip loan should be without first seeing what needs to be fixed and flipped.
Let's go back to the scenario above for a bit. Let's say at first glance the roof of your childhood home seems fine. So you don't budget for it. Then, right in the middle of your renovation, the roof starts leaking. Now you have to suddenly scrounge up the extra Gs to fix the big L: the leak.
That's why it's important to assess things now so you have a proper renovation budget later. Then it's time for the business plan.
The second biggest reason for assessing things now is the business plan. It does not matter if this is your first fix and flip or your 100th. Each fix and flip needs a business plan.
As we have talked about before, a business plan for fix and flip loans should include a few things. The first is all the research of the area you did before. The second is the current value of the house and the after-renovation value, or ARV.
You're including this information to show you mean business. While it's true alternative lenders don't have as much "red tape" as banks, you still need a plan. A business plan tells them that you're not going to wing it; you have a strategy and you're following it.
Banks don't like losing interest. And that lost interest makes banks lose interest in funding fix and flip loans.
One of the best tips for getting a fix and flip loan is to avoid banks. We've talked about this before, and we have good reasons.
First, if you've ever gotten a home loan before, you know that banks need income statements. They want this as proof your income is steady.
But house flipping is not steady like a regular job is. The profits you earn each year will be different, and banks don't like different. They like something predictable, just like every other loan they do.
Second, their loan terms are also a lot longer than you typically need them. Banks love to earn that interest. That's one of the reasons their terms are usually 15-30 years.
Fix and flip loans don't need to last that long. In a typical fix and flip, you'd sell the home for profit in under 1-3 years. That's a lot of lost interest. And that lost interest makes banks lose interest in funding fix and flip loans.
Third, they take the home's present condition into account. They like homes that need only a few touch-ups. They'll likely say no the moment they see the fixer-upper you're interested in. So what can a house flipper like yourself do?
Fix and flip lenders:
So if you're wanting to get New York fix and flip loans, consider a fix-and-flip lender today.
If you want to get New York fix and flip loans, look no further than Gauntlet Funding.
Gauntlet Funding offers the most competitive rates in the market for prime borrowers with no prepayment penalties. We have an organized, 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 Get New York Fix and Flip Loans| Gauntlet Funding-Melville, NY