What are fix-and-flip loans?
Fix-and-flip loans are short-term credits intended to help real estate investors to acquire property, renovate it, and resell it at a profit. They allow investors to fix up an outdated or unappealing property and make proceeds from selling it. Sometimes referred to as “private money loans,”, fix-and-flip loans are offered by private investors or an investor fund rather than banks and credit unions.
How can you use a fix-and-flip loan?
You can use your fix-and-flip loan in several ways, including:
- Purchase a property: You can purchase a property from moving or distressed owners at a discount and resell it after doing some renovations.
- Repair: Loans for flipping houses allow some reserve funds for the renovation of old or outdated houses to make them more appealing to potential buyers.
- Construction: Fix-and-flip loans also allow you to demolish an existing structure and reconstruct it with the intention to put it back on the market.
The Benefits of fix-and-flip loans
Loans from banks and credit unions are accompanied by strict rules, processes, and regulations that must be followed. Moreover, banks must take you through time-consuming and unpredictable loan approval processes.
Fix-and-flip loans offer more flexibility with the loan terms without too many regulations attached. Moreover, you can still get approved for a fix-and-flip loan when other lenders cannot approve a loan for you.
Compared to traditional loans offered in banks and credit unions, fix-and-flip loans take a significantly shorter time to get approved. This allows you to make good on your intended purchase and beat the competition. It also offers the chance to take advantage of compelling property prices in the real estate market.
When it comes to fix-and-flip loans, the lender is more concerned about the property being bought and renovated than the person receiving the loan. This means all you have to do is present a feasible plan of how you will manage to pay back the loan after renovating the property, making the process much faster than in banks.
Why Drew Mortgage?
Drew Mortgage Associates, Inc. is more than a mortgage lender. We’re comprehensive mortgage planners. We can help provide you with mortgage loans or refinance your loans to a lower interest rate or reduced term. Our professional home loan officers will provide you the best mortgage loan that suits your financial needs. We will assist you throughout your mortgage loan process and will guide you while filling up the mortgage loan application form. Drew Mortgage Associates, Inc. is the most preferred mortgage company in MA. If you’re struggling to close with traditional mortgage companies in MA, Drew Mortgage Associates, Inc. can help!