Things to consider when comparing lenders After you’ve looked at…
New Hampshire Fix and Flip Loans
Who doesn’t want to make money? Whether you’re seeking out a way to make side cash or trying to replace your 9-5 with an entrepreneurial endeavor that can offer you and your family newfound freedom, house flipping can be a viable goal.
In 2017, house flippers averaged a profit of more than $65,000 per property. This statistic seems pretty positive… so why isn’t everyone flipping houses? It’s really quite simple. The initial purchase of the home and the associated costs with renovation can be expensive. Not everyone has the start up cash.
The great news is that there are various avenues to access the cash you need to get started. New Hampshire fix and flip loans can be a great way to get you started in the real estate business.
How to Prepare for New Hampshire Fix and Flip Loans
Keep in mind, you’re preparing to embark on a business venture. This means you have to have a clear plan of what you’ll do to make it a success. Whether you’ve flipped houses in the past or not, there are some things you can do to increase your chances of convincing lenders you’re worth investing in:
- Prepare a business plan for each property you plan to flip.
- Be clear and thorough in your estimate for renovation costs.
- Build your network of real estate professionals by joining your local Real Estate Investors Association (REIA).
Know Your Options
When we think about obtaining funding, our minds often immediately go to a bank or similar financial institute. While a bank can provide funding, it’s important to understand you have many options. Let’s take some time to explore each.
The First Time Flipper- Friends and Family
Is this your first experience flipping a home? If you can find friends or family willing to give you the boost you need, this can be ideal. They get the perk of knowing there’s a chance of a return, and you benefit in the fact that they’re less likely to charge high interest rates.
The Well-Versed Flipper- Find a Partner
If you have a well-established network in the real estate industry, there’s a good chance you’re equipped to find a financing partner. They help in planning, seeking out opportunities, and financing them.
The Good Credit Flipper- Personal Loan
If you lack start up cash but have good credit, a personal loan can be a viable method of getting the cash you need to get started. This type of financing allows you the freedom to do with the cash as you wish, and this includes buying and flipping a home.
The Flipper with Retirement Savings- 401(k) Financing
If you’re not approaching retirement age and have determined the benefits outweigh the risks, withdrawing funds from your retirement account can be a great way to finance your real estate dreams. You could also consider taking out a loan on your life insurance policy.
Homeowners with Equity- Home Equity Loan
Over time, homeowners build equity. This is the difference between the value of your home and the balance of your mortgage. If you’ve built at least 20%, you could qualify for a home equity line of credit.
The Experienced Flipper- Business Line of Credit
If you’ve had experience in the fix and flip industry, you’ve established credibility and have a better chance of convincing a bank that you know what you’re doing. One of the main advantages of a business line of credit over a personal loan is that you only pay for what you use.
You will have access to a set fund, but you don’t have to use it all. This allows for more freedom in creating estimates and funding for unexpected situations. Based on your experience and business income, you could qualify for business loans as high as seven figures.
Flippers Lacking Access to Affordable Funding- Fix and Flip Loans
Just because you lack access to affordable funding doesn’t mean you can’t advance in your real estate goals. New Hampshire fix and flip loans could provide the answer. Not everyone has the background to get a business loan, equity in a home, or a 401(k) to tap into. You have to start somewhere, and a New Hampshire fix and flip loan can get you started toward the freedom you desire.