House flippers are always looking for the next big deal. One easy way that house flippers can earn more for their flips is by using hard money funding.
Hard money loans can work for almost every real estate transaction that a house flipper can face. For house flippers looking into diversifying their investments, hard money financing can be a dream come true.
Hard money loans are asset-based loans that can fund any real estate investment. These loans are based on the property value. There is no need for background checks or credit scores. Some lenders even offer hard money loans based on the after-repair value of a home. Hard money lenders make house flipper financing easy with their asset-based loans.
The best news for house flippers is that they can use hard money funding for more than flips. For those looking for house flipper funding, using hard money loans is a great way to start your investments.
Here are all the different ways house flippers use hard money funding.
House Flipping
For house flippers, having fast funds for their flips is a necessity. House flipping is as easy as buying a property, repairing it and selling it for a profit. Many know of house flipping thanks to very popular television shows. House flipping has only become more and more popular over the years. So there is a lot of information for those looking to start flipping.
House flippers love using hard money loans for their flips. House flippers can easily find hard money funding for their properties. Flipper funding is what most house flippers use hard money loans for. Hard money funding makes flipping a home easy as they allow you to buy properties, make repairs, and flip the homes for profit.
Fix and Flip loans are one of the most common types of hard money loans. These hard money loans are made for house flippers looking to flip a property by making some upgrades and selling it for a profit. Hard Money funding is perfect for house flippers who want to buy a property today.
These loans are short term loans (6 months to 12 months) that cover almost all the house flipping costs. Hard money funding is not only used to cover the property value of the home. It also pays for a portion of the repairs needed to flip.
For example, some hard money lenders in Phoenix even offer to base the loan on the after repair value of the flip. This gives the house flipper more funds to flip with.
These hard money loans help house flippers buy, repair and flip faster than ever with hard money funding.
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Long Term Rentals
House flippers don’t always sell the homes they repair. Many make passive income by renting their properties to generate passive income for their next property.
For those looking to acquire and upgrade large rentals, hard money funding is essential. This type of flipper financing makes buying a property easy. It does so by lending on the underlying asset of the property instead. To make the most of their long-term rentals, upgrading and repairing the property is essential. So hard money loans make this easy.
Hard money loans are based on the after-repair value of the property. So getting funded and approved for the loans is easy. House flipper funding for large one-time repairs to a property helps improve the property for higher rents. It also helps to offset the cost of the repairs.
Vacation Rentals
With alternative rental sites such as Airbnb becoming more and more popular, house flippers are looking into flipping vacation rentals.
Vacation rentals are a great way to generate passive incomes without the hassle of being a landlord. Short term rentals offer the benefits of lucrative revenue streams. They are a way to use properties for their highest earning capacity.
To make the most of their vacation rental, house flippers use hard money funding to make their rentals stand out. Large repairs such as pools are a necessity. Modern upgrades are necessary to ensure solid bookings throughout the year. For high travel areas, the best location, and best amenities will ensure a high occupancy rate. This results in even more passive income for the house flipper.
Using house flipper financing to make upgrades is faster than using a traditional lender. Like all flipper financing, the loan is based on property value and not the applicant’s credit history. House flippers use these loans to upgrade their rentals. This can make them more attractive to travelers.
Hard Money Funding and Home Rehabs
House flippers love to pay in cash, and sometimes are only looking for hard money funding for repairs.
Home rehabs are ideal for one-time large repairs. This can be for a flip that they bought cash, a rental, or anything in between.
Often when looking to charge more in rent, house flippers will add amenities and upgrades to their properties using flipper funding. Home rehabs can also be great for investors looking to sell off property and maximize their return by adding a few upgrades.
Often house flippers use hard money funding for kitchen rehabs, new roofs, or even large foundational repairs.
With only using flipper financing for the repairs, the house flipper can save money on down payments. This means a larger profit margin.
Hard money funding is a great way to add large upgrades and make flipping a home easy. Companies like Prime Plus Mortgages will work with house flippers to maximize their properties and offer the best repairs that should be made.
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Refinancing
Refinancing a house flip isn’t easy. Thankfully house flippers using hard money funding can get their projects back on track fast.
Sometimes house flippers will need to refinance properties to prevent foreclosures, get better rates, or get more cash to finish their flip. Bridge loans, a special type of flipper funding, can help flippers complete their projects save them from foreclosure.
Bridge loans work to ‘bridge’ cash gaps for a property. This cash is used to either finish the flip, sell the property, or prevent foreclosure. Due to the nature of these loans, they move fast to get the flipper money as soon as possible. Bridge loans are also extremely fast to get. Some approval is within 24 hours of application!
Sometimes, house flippers will use these loans to buy foreclosed properties. This is using hard money funding to buy auction properties. This makes them a great option for someone looking to pounce on a great deal in the fast-moving real estate market. Sometimes bridge loans fund short sale loans, or even acquire off-market properties.
With refinancing their loans, they can finish their projects and make money on properties in different ways.
Demolish your funding problems with 27 killer ways to get cash for your business.
Summary
Hard money funding helps house flippers for any of their investments. For house flipper funding having quick funds is vital for their business. House flippers need flexible funds that help create revenue streams and profit.
Many house flippers like hard money funding to get the capital they need for their properties.
For house flippers having hard money loans are a no-brainer. These loans are flexible, fast, and hassle-free, making it easy to get funding when they need it.
Hard money funding is perfect for house flippers who don’t have good credit or have spotty employment histories. Hard money is based on the real estate value for a flip, making it perfect for house flipper financing. And it is also quick to fund, with loans approved in as little as 12 hours, and loans funded in as little as two days. Some hard money lenders make it easier than ever and offer completely virtual applications.
Here are all the ways that house flippers use hard money funding:
Hard Money Funding and House Flipping
House flippers use this flipper financing to quickly get money for their flips. This loan covers most of the sales price, repairs, and list costs. All the loans can be funded in as little as two days do flippers can start flipper A.S.A.P.
Long term Rentals
House flippers do more than flip. For those looking to build passive income, this flipper funding is perfect for large one-time repairs.
Hard Money Funding and Vacation Rentals
For those house flippers living in travel hubs, having house flipper funding is perfect for a rental. Vacation rentals can turn over large profits but will require large repairs and attracts to get more bookings. For adding pools, and making a top-tier rental, this type of loan is perfect.
Home Rehabs
Paying cash for a property is a great way to lower your costs for a property, but leaves gaps for funding repairs. For those looking to fund their repairs, house flipper financing is a great way to make sure projects finish on time.
Refinancing
Whether it’s to prevent foreclosure, fill in cash flow, or to make sure a project is done on time. This type of house flipper funding is ideal for those house flippers who need a one-time influx of capital.
Have you ever used hard money funding?
About the Author: Catherine Way graduated from Michigan State University with her Bachelor of Advertising, with a specialization in Graphic Design. She is a content marketer for business, mortgage, and real estate industries. She currently writes and reports for Prime Plus Mortgages– Private money lenders Arizona
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