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FIX AND FLIP LOAN CENTER

 

HOW TO FIND HOUSES TO FLIP  Free Guide Tells You Exactly How

 

Apply For a Fix  and Flip Loan

This fix and flip loan center will teach you much of what you need to know about the fix and flip business - (1) How To Find a House To Flip; (2) How Much Cash You’ll Need To Flip Houses; (3) How To Get a Fix and Flip Loan; (4) Costly Mistakes To Avoid When Flipping Houses.

How To Find a House To Flip:

  • Newbies should consider buying their very first fix and flip house from a wholesaler. 
  • Then they should get set up with several real estate agents who specialize in REO’s. 
  • If they have a friendly real estate agent, they should have that agent set them up to receive emails every time a new listing hits the market that contains terms like fixed-upper or handyman’s special. 
  • Foreclosure sales and public auctions are a great way to find houses priced far below market.
  • Call regularly on your local hard money brokers.  They don’t want to own foreclosures.
  • The new house flipper then needs to network-network-network.
  • The easiest way to network is to offer a $1,000 finder’s fee.
  • Build a list of contacts, finders, and tipsters.
  • The best finders are real estate agents who specialize in estate sales, other estate sale professionals, antique dealers, clean-out guys, dumpster companies, divorce attorneys, and probate attorneys.
  • Develop special business cards that highlight your finder’s fee offer.
  • Develop an elevator pitch and hand out your cards.
  • Put a magnetic sign on your car.
  • Get to know your postman.  They have the inside track. 

Be sure to download our free guide, How To Find Houses To Flip.  This invaluable guide contains 15 different strategies and contains far more detail.

 

HOW TO FIND HOUSES TO FLIP  Free Guide Tells You Exactly How

 

Apply For a Fix  and Flip Loan

How Much Cash Will You Need to Flip Houses?

  • Forget about bankers.  They require that a flipper cover at least 30% of the total cost of the project.  This demand is unreasonable.
  • The lenders who finance fix and flips are private money lenders, like Blackburne & Sons.
  • Private money fix and flip lenders are extremely aggressive right now.
  • You will NOT be required to come up with 20% to 30% of the total cost of the project.  That is great news!
  • Instead, you will only be required to come up with 15% to 25% of the purchase price of the rundown house that you are buying.
  • Your fix and flip lender will then loan you 100% of the cost of your repairs, plus a four-month interest reserve.
  • You end up enjoying a construction-like loan that is a whopping 83% to 87% of cost.  That is insane, wonderful leverage.

 

Please click to apply for a fix and flip loan.

This interesting blog articles goes into more detail about how much cash you will need to start flipping houses.

 

HOW TO FIND HOUSES TO FLIP  Free Guide Tells You Exactly How

 

Apply For a Fix  and Flip Loan

How To Get a Fix and Flip Loan:

  • Once again, forget about bankers.  They take so long to process a fix and flip loan application that the target property will be long gone.
  • In real life, private money lenders, like Blackburne & Sons, fund the vast majority of all fix and flip loans.
  • Expect to pay between 9% and 12%, depending on the your region of the country.  In hot areas like California, New York and its suburbs, and the nicer suburbs of Washington, DC, your rate will be around 9%.  In the nicer suburbs of big football team cities, you’ll pay around 10%.  Elsewhere expect a 12% rate.
  • Don’t worry too much about your interest rate.  You’ll probably only have the loan for two to three months.
  • Expect to pay 2 to 3 points, and maybe just 1.5 points in California.
  • The term of the loan will be one year.
  • You can buy a three-month extension for one additional point.
  • The loan will have no prepayment penalty.
  • You will be required to personally guarantee the loan.
  • Your fix and flip lender will loan you around 75% to 80% of the cost of the rundown house.
  • On top of that, your lender will loan you 100% of the cost of your renovations (!!) and he will even fund a four-month interest reserve for you.
  • This is an incredible amount of leverage - something like 83% to 87% of total cost.
  • Your credit does NOT have to be perfect.  Low credit scores are regularly accepted, especially if the borrower has homebuilding or home-flipping experience.
  • Your total fix and flip loan cannot exceed 70% of the After Repair Value ("ARV”).
  • The good news is that the vast majority of all fix and flip loans satisfy the 70% of ARV Rule.  Hooray!

Please click to apply for a fix and flip loan.

This article contains a lot more detail about how to get a fix and flip loan.

 

HOW TO FIND HOUSES TO FLIP  Free Guide Tells You Exactly How

 

Apply For a Fix  and Flip Loan

Costly Mistakes To Avoid When Flipping Houses:

  • If you choose to sell the property without a real estate broker, don’t fail to hire a professional photographer to display your finished product in its most flattering light.
  • Don’t delay in starting to market the property.  As soon as the repairs have begun on the home, you should aggressively start looking for a buyer. Marketing the house in this manner will help you sell it as soon as it is complete.
  • Don’t scrimp on high-end appliances.  Nothing sells a home like the kitchen.  It may even be possible to find used high-end appliances.
  • Don’t overestimate your do-it-youself skills.  A famous TV fix and flipper almost fell though a roof.
  • Don’t automatically replace kitchen cabinets.  Consider re-surfacing them.
  • Don’t make an offer without a 5-day inspection contingency.
  • Don’t just accept the deficient number of bedrooms.  Look for ways to convert spare rooms into bedrooms.
  • Don’t automatically reject a property because of mold.  It can often be economically treated, and you can snag some great deals.
  • Don’t delay!  Buying flip properties is a race, so get in there and make genuine offers.
  • Don’t be cheap! I recommend updating the light fixtures, fans, door knobs, and faucets.  Custom fixtures can be found for cheap.  This will make a huge difference, and buyers will notice it.
  • Don’t allow your property to smell.  An ozone generator can get rid of the worst smells and odors.
  • Don’t list your property too high.  By listing the house 1-2% below market value, it will ensure a quick sale and get you on to your next flip as soon as possible. 
  • Don’t make your renovation budget too tight.  Consider padding your rehab budget by adding a 10-15% contingency. 
  • Make sure your alleged bedrooms are legal.  Many local codes require certain sized windows for a bedroom; this often comes in play in basements, and some codes require a closet in every bedroom.
  • Don’t neglect the exterior appearance of your property.  Curb appeal is the “business card” of your flip - what gets people in the door.

Please click to apply for a fix and flip loan.

 

HOW TO FIND HOUSES TO FLIP  Free Guide Tells You Exactly How

 

Apply For a Fix  and Flip Loan
 

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