Fix and flip a property is a strategy employed by some real estate investors to earn a profit from repairing and selling real estate properties.You fix a house or a building to improve its functional, aesthetic and market values so you can resell it later at a much higher cost. You can potentially earn big profits from this strategy as long as you have enough cash to buy and repair broken down properties.
Cash Strapped
A rehab hard money lender can help you get additional cash if you cannot finance the repair phase of your project. Hard money lenders provide financing to real estate investors who need money to purchase and repair real estate properties.
Rehab hard money lenders generally charge higher rates than traditional lenders but they are your best option. You won't likely get a loan or rehab financing from traditional loaning institutions like banks and credit unions because providing loans to fix and flip properties does not comply with the terms rquired by most traditional lending institutios.
When finding rehab hard money lenders, make sure that you choose a lender that focuses on the type of property you are planning to invest on. You should look for residential rehab hard money lenders, for example, if you want to fix and flip residential homes.
Requirements
To qualify for a loan, you may be required to submit your W-2 statements, bank statements, tax returns and your credit score although some lenders may waive submission of some requirements.
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