What are fix and flip loans?
Fix and flip loans are short-term real estate loans designed to help you purchase buildings and renovate them to resell at a profit within 6 to 12 months. If you’re looking to fix and flip a home quickly, or purchase and rehab a property in Rochester, NY, you’re going to need a renovation loan. We are direct lenders offering fix and flip loans for real estate investors with no credit check. Our asset lending programs have you approved based on the value of your real estate asset and also have no prepayment penalty.
Advantages of a fix and flip loan
It’s hard to overstate the advantages of a hard money fix and flip loan for investment properties. With fast funding, flexible terms, and less risk, you can focus on your property’s upgrades knowing your funding is in place.
Hard money fix and flip loans provide fast cash for investors bidding on foreclosures or auctioned properties. We can process loans within the week! Flexible terms for loans are hard to find. But luckily, we’re private lenders and not traditional banks. Work with us and get a flexible loan for your rehab on your fix and flip!
Tips for getting a fix and flip loan
The flexibility built into a hard money fix and flip loan means that borrowers have more options. It also allows more than one lender to finance your project, which means you can choose the one who is the best fit for your circumstances.
When you’re ready to get started you'll need to find the right lender. Use these tips to find a reliable lender for your fix and flip loan.
1. Find a local lender. An experienced lender will be a valuable resource to you in your new business. It is helpful to work with someone familiar with the local real estate market and contractors if you decide to make improvements to the property.
2. Find a reliable lender. Ask other flippers in the area who they work with, and get a few names to investigate further. It's important to find a lender who has done this before and has gotten positive results.
3. Ask about construction draws. Construction draws are the disbursement of funds from the approved loan amount to cover construction work being done on the property. Some hard money lenders may put a hold on funds until work is in progress or completed. Make sure you know how quickly your chosen lender will release funds for construction work. At Webster Capital, we pride ourselves on providing quick, no-fee draws for your fix and flip.
4. Budget. When you’re taking out a fix and flip loan, be sure to work out all the costs of the purchase, renovation, carrying, and marketing ahead of time so you can show your lender that you’ve done your homework.
5. Scheduling. With a fix and flip, time is money! Be sure you have a detailed renovation schedule with their associated costs and stick to your budget! Having a plan before getting your loan is vital.
6. Ask questions. Hard money loans can vary, so make sure you know what your lender requires and if they will be a good fit.
7. Start at Webster Capital! We are the most experienced and qualified fix and flip loan provider in Rochester! We are your local choice for fast funding, easy terms, and honest private lending.
Getting started with fix and flip loans
“Hard money” financing has long been a popular option for real estate flippers who don't have time to wait for traditional bank financing. These loans are specifically designed for real estate investors looking to get funded quickly.
When you're in the market for hard money, there's no need to go at it alone. With help from your local hard money lender, you'll find a stress-free way to finance your next flip. If you've never used a hard money loan before, you will be pleasantly surprised at how fast and easy the process is! If you are looking for a fix and flip loan in Rochester, we'd love to talk about your project. Contact us today or apply online.