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.
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.
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:
Once you’ve gathered and analyzed all the data you’ll need to write 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?
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.
“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.
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:
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