Why are flipper loans important?
When it comes to flipping houses, acquiring the right funding for your real estate investment is essential. When house flippers apply their skills to the real estate market, they purchase a real estate investment for a low price, then, after rehabbing the property, the flipper sells the property for a profit. This fix and flip code, however, is nothing unless the flipper secures proper financing for the purchase, and this is what makes flipper loans so important.
What are flipper loans?
To sell your renovated property for a profit, you first need capital to purchase the distressed real estate. Flipper loans are the best type of funding for house flippers since this financing allows you to earn maximum profit from your investment. These types of loans, otherwise known as real estate investment loans or hard money loans, finance the purchase of your property investment while also funding the rehabilitation and repairs.
How are flipper loans different from conventional loans?
Most banks do not provide financing for the rehabilitation of an investment property and have strict rules against approving property that is old, damaged, or distressed. Instead, house flippers and real estate investors use flipper loans to fund rehabilitation of an investment property. Flipper loans are specifically designed to finance the purchase and repair of property investments. After the property is bought, the flipper loan allows real estate investors to apply their strategies: whether they choose to fix and flip, or fix and rent, their real estate investment.
What are the benefits of flipper loans?
For the most part, these real estate investment loans are designed to work best for house flippers. This type of short-term funding provides a fast turnaround, which is ideal for the time-sensitive nature of real estate investment. Conventional bank loans can sometimes take upwards of 30 – 45 days to process, and when here’s an active bidding competition for a property, is too long to wait. A quick close of a flipper loan provides an advantage for investors, and most lenders can provide funding in as little as seven days. Sherman Bridge offers pre-approval for a flipper loan in as little as 30 seconds and also provides flexibility to repay your loan up to 30 years.
What can I fund with a flipper loan?
Flipper loans provide the flexibility to fund the purchase of investment real estate, and also finance the renovation expenses. Investment properties do often provide some equity, but the primary goal of house flippers is to provide a profit margin after the property is renovated. Flipper loans cover all the bases for a property investment, and investors can quickly purchase the property while still having enough money left over to afford repairs.
Where can I get a flipper loan?
Sherman Bridge’s specialty is to provide real estate investment loans for house flippers. Our main clients are people who invest in real estate, just like you, so we understand the importance of less money down and low-interest rates. You can invest in your success with our specialty loan products that provide more equity and more cash flow. A greater profit margin equals more money in your pocket, so you can continue to fix and flip properties!