Fix and Flip Loans

Can you start to flip houses without any cash?

Not really.  Some people have done this, but it is not advisable.  It is simply less stressful to the loan holder to have cash flow before trying to flip homes.  We do not advise 100% financing with no current cash flow.

How much do house flippers make?

Profits vary widely.  Many people enter the fix and flip industry with hopes before truly doing their homework or getting needed expert advice.  Be careful of get rich quick schemes in this area.

How do you make money flipping houses?

You must first know the real estate market extremely well so that you buy at well below the prevailing market value for a property.  It is important to have an idea of the total repairs costs.  The advantage comes when seasoned house flippers are able to appraise a home and estimate the repair costs upon sight with astounding accuracy, which is a skill not to be underestimated in its value to the bottom line in this business.

Can you flip houses with bad credit?

This is a Hard Money Loan, so generally investors are more interested in equity and cash flow of your fix-and-flip opportunity.

What's the 70% rule in house flipping?

The 70% rule states that an investor should pay 70% of the After Repair Value (ARV) of a property minus the repairs needed.  ARV is the after repair value, which is the value of the property after repair.

Example: If a property’s ARV is $200,000 and it needs $50,000 in repairs, then 70% rule states an investor should pay $140,000 maximum for the property.  $200,000 x 70% = 140,000 – $50,000 = $90,000.  Buying a house for $140,000 that will be worth $200,000 may appear good, but be cautious not to overlook other costs.

How do I apply for a Fix and Flip loan?

Contact us for a consultation to see if a Fix and Flip loan is right for your situation.  We will use our lender network to do the research for you.