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Bakersfield Fix and Flip Loans
Delancey Street provides fix and flip loans to real estate investors in Bakersfield, and the greater Kern County. We can provide funding for your next project, regardless of the amount, and regardless of the length of the loan.
Smart real estate investors are eyeing fix-and-flip opportunities in Bakersfield, CA. Bakersfield offers all the benefits of Southern California, like sunshine, warm weather, and beautiful mountain peaks, while giving residents freedom from L.A. traffic, smog, and expense. Even more importantly for the fix-and-flip investor, its economy and real estate market are surging.
Bakersfield is growing, and so is its demand for updated homes. That means big money for fix-and-flip properties. Many Bakersfield homes need work, and that means they’re low priced. Enterprising real estate investors are making a killing buying these homes, completing the rehab and renovations, and flipping them onto Bakersfield’s hot housing market.
What’s the best way to profit from this trend?
Investors are making big money in Bakersfield with fix-and-flip loans. Unlike conventional mortgages, fix-and-flip loans are designed for buying investment homes that need work. The entire purpose of the loan is to renovate a home and sell it quick for maximum profit.
Does that sound like what you need?
If you are in the real estate business to make big money quick or thinking about getting in on the fix-and-flip opportunities in Bakersfield, it is the only way to go.
How fix-and-flip loans differ from traditional mortgage loans
Fix-and-flip loans are about the investment opportunity. Lenders designed traditional mortgage loans for families who want to buy a home and live in it for a long time—usually five years to several decades. Looking at the loan from this perspective, the lender is primarily concerned with the borrower(s), not the property. Sure, the traditional lender wants an appraisal, but that’s usually a formality. The lender really cares about whether the borrower can afford the payments and if borrower will have a stable income stream to keep paying for many years into the future.
Because of this, the traditional lender looks at income, job history, and credit score. If the borrower meets the lender’s criteria on these counts, then the lender doesn’t care a whole lot what house the borrower buys. So long as the house fits the price range the borrower qualifies for, the lender is happy to give the loan.
Fix-and-flip loans take the inverse perspective. The borrower’s income, job history, and credit are out the window. The lender often doesn’t even look at them. Why does the fix-and-flip lender avoid using these criteria? Because they have no impact on a short-term, fix-and-flip loan.
A fix-and-flip loan is designed for a very short term, usually less than a year. The term is based on the length of time needed to renovate the home and sell it. The fix-and-flip lender has no interest in whether the borrower can pay on the loan for the next three decades. What matters is whether the borrower can make a profit.
A fix-and-flip loan is about the deal, not the borrower’s credit. The approval criteria consists primarily of the cost of buying the property, the cost of renovating the property, and the sales price after repairs. The lender calculates these numbers and determines if they add up to a profit. If it’s a money maker, the loan’s a go. If not, the lender turns it down because a loan on a losing deal puts the lender at risk.
How to apply
If you are in the fix-and-flip business, you need to locate a Bakersfield hard money lender you trust. Success depends on having a lender that is experienced in this type of loan. Speed matters when it comes to fix-and-flip loans. The competition won’t wait. Neither can you.
First step, locate a Bakersfield fix-and-flip lender with expertise in the Bakersfield market, like Delancey Street. Then find your winning deal and get your loan application in right away. Lender’s like Delancey Street approve loans at lightning speed. They do this because your completion are also trying to get hold of the same property. Expert Bakersfield hard money lenders know if you have a winner, and if you do, you get the green light and the property before your competition.
Delancey Street is a premier, and top-rated, private money lender in California. We understand the importance of private money loans for real estate transactions. We provide private money loans for commercial and residential projects, ranging from $100,000 to $5,000,000. If you need a loan for your next transaction, we’re here to help you.
We care about one thing exclusively: whether your project will succeed or not. Private money lenders come to us when they need someone can provide creative financing, and can understand the real estate investors project.
There are private money lenders out there who are eager to lend money to you. They will do so if you find the right kind of real estate property to invest in. If they see the potential in a property that you have selected, you might be able to get them to lend you the money you require to purchase your dream property.
Traditional Lenders Are Not Nearly As Helpful
There are traditional lending options for real estate of course. These include things like going to a bank or credit union and applying for a loan through them. You might wonder what is wrong with doing exactly that. There are actually a few drawbacks to this method that a lot of people simply gloss over or do not bring up when talking about real estate investing in general.
The problems include the following:
- A Lot Of Regulations
- You Might Not Qualify
- Long Processing Times
Who wants to deal with all of that when they do not have to? There is a whole world of private lenders out there who can help you skip past all of these annoyances. Talking to a private lender might just help you get away from a tough conversation with a credit union or bank about getting denied for a loan from one of them.
Why Investing In Real Estate This Way Makes Sense
“I don’t like to tell a man what to do with his money but if you are investing in real estate you are dumber than a dummy” said Jo Bennett, the character played by Kathy Bates on the smash hit NBC series The Office. She was telling a salesman at a paper company who had a particularly good year of sales that he needed to use some of that money to make more money for himself. Her suggestion was to invest in real estate.
It is difficult to ever argue with the wisdom that comes from a show like The Office. That advice in particular really does apply to the real world. People need to take the time to use their money to generate more money for themselves. Failure to do so really does put them in a category of people who are not doing themselves any favors.
How To Convince A Private Money Lender To Lend To You
There is no golden bullet for getting a private money lender to lend their money to you for your real estate dream. There are certain factors though that private money lenders are always on the lookout for. Every private money lender cares about the success of the project. If you want to get funding, prove your project can succeed, and show the potential. Have an explanation for how much money you need it, why you need, what you’ll do with it, and when you intend on repaying the loan.
A lot of lenders also want to take a measure of you as a person. They want to meet up with you and see if you are the kind of person that they believe they can trust. Trust really makes up a lot of this business at the end of the day. An investor who feels that you are going to take care of your affairs will invest more time and money into you than one who does not. Keep this in mind when meeting with these types of lenders.