Why a Fix/Flip Loan?
Types of Fix/Flip Loans
Hard Money Loan
Home Equity Line of Credit
Fix and flip loans differ from traditional financing in a number of ways. Borrowers need a loan that can be processed quickly, unlike traditional mortgages, which can take months to finalize. They are usually a short-term loan, and a borrower’s credit history is less important than the real estate’s profit potential. While these fix and flip loans are more flexible, they also have higher interest rates and often carry more risk as well as lender involvement.
Obviously, flippers with a successful history have access to more financial options, but beginners can break into this market. As always, people should seek professional financial advice before beginning the borrowing process.