Real estate has always been a great value holder, and a great way to build value. However, investing in real estate comes with a starting cost. Because of this, many real estate investors rely on commercial loans when they buy houses to flip. One type of commercial loan, known as a Fix and Flip Loan, is a short term commercial loan for real estate investors who are looking to renovate and flip a house in a short period of time.
How Does a Fix and Flip Loan Work?
These small business loans are meant to cover the cost of purchase, repairs, and associated expenses like listing or selling the property. They can be structured in a wide variety of ways, including hard money loans, seller financing, 401k loans, and even personal loans.
Hard Money Fix and Flip Loans
One of the great things about getting a hard money loan for a fix and flip is that instead of focusing on personal finances and credit, hard money lenders tend to focus on the value and potential of the property under consideration. Generally, hard money loans of this type will have a repayment schedule broadly between six months and three years, depending on the lender. The amount of funding you may be eligible for with a fix-and-flip loan is dependent on the loan-to-ratio value, more commonly referred to as After Repair Value (ARV).
Finding the Right Lender
To find the right lender for your needs, you’ll need to do a deep dive not only on your house-flipping plan but also your own personal and financial situation. If you decide to go with a hard money loan, make sure to do your due diligence when searching for a lender. Referrals, reviews, accreditation, etc. should all come into play.
About Wildcat Lending
At Wildcat Lending, we are an industry-leading private money lender that specializes in loans for real estate investors. Our fast, secure loans allow you to purchase real estate faster, avoiding the time constraints of many other traditional lenders. We do not require tax returns OR employment verifications to apply for our real estate loans. Our loans are structured around individual financial circumstances, which we use custom metrics to determine. Because of our streamlined process, our average turnaround from application to closing is under just one week.
Are you looking for a fix-and-flip real estate loan in Texas? Wildcat Lending can help you with your investment needs. We also offer rental property loans as well as zero loan terms. We make the whole process fast and easy. To find out more, please do not hesitate to give us a call at your convenience. One of our friendly and knowledgeable representatives will be happy to answer any questions you have. You can also apply on our website to start the process.