Everything You Need to Know About Fix & Flip Loans

What exactly is a fix and flip loan and how do you get one? We are so glad you asked.

If you are thinking about getting into the fix & flip business, if you are thinking about becoming the next great fix & flipper, you’re inevitably going to need to get yourself a fix and flip loan. It’s…kind of a big part of the whole fix and flip scenario, ya know? But what if you don’t know what a fix and flip loan is, let alone how to get one?

Well, The Loan Guys are here to help. Here’s everything you need to know about Fix & Flip loans.

Lack of available cash often prevents would-be real estate investors from leaping into the investment property business. Luckily, one of the simplest ways to generate those funds to get your house flipping project started is a fix and flip loan. Fix and Flip loans are short-term, real estate loans designed to help a property investor purchase and renovate a property in order to sell it at a profit—generally within 12 to 18 months.They are most often used to purchase residential properties at auction or foreclosure, to finance renovations and upgrades, or to cover other expenses associated with the ownership of the property.

Unlike traditional home loans, which are long-term investments designed to help the borrower purchase a home that will serve them for decades, fix & flip loans are designed to do exactly what they’re named for: renovating and reselling a property in a short time period. Fix and flip loans give you the funds not only to buy the property but also for the renovations, which is idea when you just don’t have upfront cash.

Even better, qualifying for a fix and flip is a lot easier than qualifying for other more conventional loans. Money lenders that provide these loans — like The Loan Guys — don’t look at the borrower’s financial records as much as they look at the collateral for the loan – aka, the actual property. So, even if you have not the best credit, you can still qualify!

One of the most important things you need to know about fix and flip loans is that all the risk falls on the borrower. It’s up to you, if you use a fix and flip loan, to make sure all the repairs and renovations are done on time. And then, to avoid defaulting on the loan, you will need to make sure the property sells. Also, because they are short-term and considered more risky than a conventional mortgage loan, fix and flip loan interest rates are generally much higher. On the plus side, once you sell your flipped property, you should make a decent amount of profit, even after you pay off the loan!

Now, not all fix and flip loans are created equal, and not all money lenders who can offer you fix and flip loans are created equal. So how does a Loan Guys fix and flip loan differ from all others? Well, here are just some of the highlights:

*Get 100% of the rehab.

*Get one time approval and we will not need another document from you for another 12 months.

*Purchase, refinance or cash out options available

Experience driven.

*Rates starting at 7.49%

*Minimum credit score requirement of 620

*Up to 75% ARV (Depends on experience level)

*1-4 units, condos, 5+ multifamily apartments and mixed use

*12-month term loan with 6 month extension available

*Loan amounts from 75K-5MM

*Purchase only option available

*No Prepayment penalty

*No interest reserves required!

With minimum requirements in combination with their quick processing and underwriting process, The Loan Guys can close your loan within seven days.

Yeah…SEVEN DAYS.

So, that’s everything you need to know about Fix & Flip loans. Congratulations, you are now an expert! Wait…don’t feel like an expert? No worries. Just hit up anyone at The Loan Guys and they can walk you through any questions and concerns you might have about fix and flip loans, investment property loans, even rental property loans.

Seriously, they live for this stuff.