Hard money loans are such an ideal tool for quick real estate investing that they’re often called fix-and-flip loans. Finding the right market where you can put hard money loans to good use can present a challenge for investors. Here’s a look at some of the best markets where fix-and-flip loans can do the most for real estate investors.

How to Find the Best Places for Fix-and-Flips or Rental Properties

Finding the best markets for fix-and-flips or rental properties can depend on numerous factors. You’ll want areas that show growth or the potential for growth.

You can look at the numbers to see if there’s an influx of people moving into an area. See what areas have big plans, such as attempting to attract more businesses or put funding into infrastructure. Avoid places with high vacancy rates or unreasonable home prices.

Markets that fit the criteria can change and fluctuate over time. Nevertheless, many markets currently fit and are well worth considering:

  • Florida (Orlando, Tampa, Jacksonville)
  • DFW Metroplex (Dallas, Plano, Fort Worth, Arlington)
  • North Carolina’s Research Triangle (Raleigh, Durham, Chapel Hill)
  • Tennessee (Memphis, Jackson, and Chattanooga in particular)

This is nowhere near an exhaustive list, but it gives a rough guide of where to start looking for your next real estate investment. Each of these areas and states have shown expected growth, which makes now the perfect time to snatch up fix-and-flips or rental properties.

How to Choose Between Selling or Renting Real Estate

When making these quick real estate investments, you need to go in with a plan. It will come down to the question of whether you plan to fix and flip the property to sell it quickly or fix and flip the property to rent it.

When flipping a property to sell it, you typically want good returns in a short amount of time. In this way, flipping can look more like the speculation part of investing.

You can find a property, make repairs yourself or hire others to do so, and sell it in a very short amount of time. Hard money loans shine with these types of investments, especially if you find homes you’re certain you can flip quickly for a profit.

Those who fix and flip to rent the property are making a longer-term investment. You can do all the same things as if you were flipping the home because you still technically are.

When everything’s ready, you will hold, rather than sell, and attract renters. This applies to both residential and commercial properties. Once again, hard money loans are ideal for getting you there.

How to Use Hard Money Loans for Real Estate Investments

Hard money loans provide funds based on the value of the property you plan to flip. These short-term loans come from private lenders and generally have nothing to do with credit scores or other traditional loan criteria.

Flip-and-fix loans will allow you to make a purchase very quickly without going through the typical lending channels or rigmarole. That’s what makes these loans ideally suited to fix-and-flips.

Finding great properties in ideal markets is only the first step. You need a full plan in place, a budget, and set realistic goals before you can borrow with confidence.

The good thing is that once you obtain a loan and prove you can fix and flip a property, you will have an easier time securing your next hard money loan. With Wildcat Lending, you can start the process of obtaining the loan you need right now.

Contact us for more information, or simply apply for a hard money loan right now.