You know that residential homes are a great investment, and you know that people don’t want to have to do a lot of repairs and such when they buy their home. That’s where you come in and take away their headache for the home they buy in Boca Raton, Coral Springs, Deerfield Beach, Fort Lauderdale, North Miami, Pompano Beach, or the surrounding area. You buy homes, fix them and then flip them, making some money in the process for your time fixing them up. Once you’ve done it for a while, you might have enough money to finance it all yourself, but until that time you need to have a fix and flip loan, and that’s where your friends at Graceful-Lending can be a great partner.
What Are Fix and Flip Loans?
You know all about conventional loans for homes, and that they can stretch for up to 30 years. This is perfect for owner-occupied homes, but this isn’t practical for when you want to buy a home, fix it up quickly, and then resell it. You want something that only lasts for a short time. Fix and flip loans are the short term loans you need as a real estate investor because it gives you the money to not only buy the home but also purchase the needed materials to renovate the home. Then you would sell the home, pay off the loan, and pocket the difference as your profit. These kinds of loans fill a need in the marketplace and help property from just sitting around doing no one any good.
Advantages of Fix and Flip Loans
Fix and flip loans have several advantages over other types of financing, including the traditional home mortgage option. The first is the short duration of the loan, which is typically between 12 and 24 months in length. There is also no penalty for early repayment, helping to encourage the borrower to pay off the loan as quickly as possible, while still allowing for the necessary time to do the renovations as well as giving time to sell the property. Like traditional home loans, fix and flip loans are secured by the property itself, meaning that if the borrower ends up defaulting on the loan, the lender can take possession of the property to recoup their investment. These fix and flip loans are also sometimes used as investment vehicles by others as part of their investment portfolios.
When you are ready for your fix and flip loan for that home in Boca Raton, Coral Springs, Deerfield Beach, Fort Lauderdale, North Miami, Pompano Beach, or the surrounding area, give a call to Graceful-Lending and they’ll be ready to help you out.