Financing flip properties can be a very tricky proposition, especially with banks having tightened their belts since the housing crash. Luckily, it is not an entirely lost cause. While some of the more advanced methods might require significant capital, that doesn't mean that they all do.
In fact, as a matter of risk management one of the goals for an investor should be to have as little 'skin in the game' as possible; simply meaning invested cash. As an example, if there was $100,000 available to invest, it would be better to leverage that as down payments on 2 or 3 properties rather than to risk it all on one. But how can you finance your flip properties?
Here are the 3 Best Hard Money Guides for Fix and Flip Loans:
1. Fix and Flip Strategy Guide - This guide made the list for a few reasons. First of all let's face it, with every fix and flip project, we learn how we could have made more money. Many of us don't have any guidelines available when we start a fix and flip project, nor do we have a resource to reference again and again. My team and I have put together a Fix and Flip Strategy Guide to help you work out a plan before you buy. This guide will help you determine what properties have the most potential, evaluate the best methods of financing, and prioritize the improvements to make before selling.
Secondly, it’s recent. This is extremely important when it comes to real estate in general, but even more so with financing. The laws and regulations for financing change constantly, and information that is even 2 or 3 years old can be obsolete. There are few things as frustrating as putting together a business plan only to find out that the financing it depends on no longer exists.
Finally, this guide is a quick read, which is a great start to the topic. When it comes to financing, it's easy to get overwhelmed; this guide is simple to understand.
2. How to Finance Fix and Flips with Hard Money, Private Money, and Portfolio Loans - As before, this guide is fairly recent, but was chosen for another important reason: it talks about financing outside of the traditional bank route. While these options are more expensive, they also understand the industry and will usually move much faster than a bank would. These lenders are also more interested in the property than the down payment, so this can be a great route for investors whose capital is tied up.
3. Hard Money 101 - An extremely thorough guide to hard money. While this covers areas that aren't specific to flipping, it will give you a great foundation of knowledge about how hard money lending works and how to use it to your advantage. Less than 6 months old, it is very relevant to the current market and investing environment.
If these guides aren't quite enough, feel free to contact us for some other solutions for financing your flip project.
