4 Steps – How to Get Started with Your Next Fix and Flip
In 2017, the fix and flip industry continues to grow. Now is the time to take advantage. Finding the right property for a fix and flip isn’t just about finding the cheapest property, but about finding the property with the best return on investment (ROI).
Step #1: Before You Look for a Property
Before you even take a look at a house, research your market! Look at comparables (comparisons of real estate information) like home sales, appraised home value, and more. Gather this information before you start a project to define your budget, including all possible project costs.
Step #2: Finding the Right Project for You
Purchase price is only one of the costs associated with a fix and flip. Rehab/renovation costs also play a factor. Some lenders…like LendingHome offer rehab funding, while others only lend to purchase the property.
Before you look for a loan, you must create a full project budget on a prospective property. This should include the purchase costs, rehab/renovation costs, homeowner fees, and seller costs. This will tell you the amount you’ll need for your hard money loan.
Step #3: Finding a Lender
Once you have your budget, it’s time to find a lender. Banks don’t offer short-term loans for flips, but there are online lenders that do.
As a flipper, you want a fast and transparent process to get a rate and close a loan as fast as possible… That perfect property is probably being looked at by another investor.
LendingHome uses a 100% online platform. When you apply, you’ll always know where you are in the loan process. The loan can close in 15 days and even faster for repeat borrowers. Go here to apply to get your rate and get funding quickly.
Step #4: Success through Research and Repetition
If you’re just getting started with fix and flips, be sure to do your research and learn through experience. Multiple flips will teach you the best repairs to maximize your ROI. The more flips you complete, the easier it will be to find and get better deals.
Finding the right funding will make or break your next fix and flip. LendingHome offers up to 90% LTV of purchase price and funds 100% of rehab through holdbacks. Apply for loan amounts up to $1 million with as low as 1.5 origination points and as low as 7% interest.
So what are you waiting for? Get Your Rate Now
