If you are in the business of flipping properties, then you can understand that sometimes cash flow is a problem. When your money is tied up in a property that is currently on the market, having the capital to purchase a new house to flip can take some creativity. A typical mortgage can take too long to process, and you can miss out on the opportunity to purchase a rehab house. A fix and flip credit line gives you the flexibility you want when you are trying to rehab a property but you don't have enough capital in place.
When you want to keep going and continue to flip houses, it's time to consider your options.
Fast Closings No Matter What the Conditionfix
A traditional mortgage lender wants to know what type of shape the home is in, understanding that if the mortgage is defaulted on, they will own the property. With a fix and flip rehab loan, the lender understands that this is a short term loan that is going to be paid back fast. The loan processing is done quickly, and the condition of the home is not important. The buyer doesn't have to wait for the mortgage to be approved contingent upon the condition of the property.
Securing a Hard Money Rehab Loan
The qualifications for securing a hard money rehab loan are less stringent that securing a typical mortgage. Your credit score can be quite low, near 550 or higher to secure the loan. If you are a licensed contractor, you are more likely to get the loan. In addition, if you have more than two completed rehabilitation projects that you can prove to the lender, you are even more likely to get the loan. You'll pay a higher percentage rate than a traditional mortgage, but you can get your cash within a few weeks once you are approved.
Flipping Houses for Profit
Flipping houses doesn't have to make you cash poor. When you are in the business of flipping houses for profit, you can use fix and flip credit financing to secure your next property. You won't have to worry about having enough capital, and you can use the cash you do have on renovations.
When you are ready to flip your next property and you find yourself coming up short with cash, contact services that provide you with fix and flip credit line options.Share
7 June 2019
I always wanted to buy my own home and after saving enough money for a down payment, I decided that it was time. Before I started looking at houses, I talked with a loan officer about financing. I wanted to know how much money I could borrow so I could look at houses in that price range. I was very happy after my meeting at the loan company and I was ready to start house hunting. My name is Jarod Spangler and I'm now a homeowner. If you have the dream of owning your own home, I think you'll find my blog of help to you. I've documented my journey of saving money, securing a loan and purchasing a house. To help you become a homeowner too, I'm offering advice and tips of things that I've learned along the way.