West Virginia Fix and Flip Loans
You have good friends who have made themselves a small fortune by tapping into property opportunities in West Virginia. They’ve flipped houses with great outcomes. You’re ready to do the same, but you want to find projects that need some work. You can get properties in need of repair at a much better price. In some cases, it may be a home that has been abandoned for some time, resulting in damages. You could be scoping out foreclosures listed by the bank or home sales available at auctions to get a really low purchase price. You need to look beyond the damages at the underlying structure. If the house has “good bones,” or a decent foundation, it has the potential to make money for you. The less you have to lay out, the more room you have for profit. You’re ready to be a part of the fix and flip craze in West Virginia. The question is how can you afford it?
Where Can You Get the Money for a Fix and Flip Loan?
Your bank should not be your first choice for a fix and flip loan in West Virginia. Taking on a house in need or repairs could be considered too risky for your traditional lending programs. Home mortgages are generally offered for longer terms. Think of a fix and flip loan as one in which you expect speedy results. You hope to pay back your loan quickly. At the same time, you expect to see a profit. Your first fix and flip loan could lead to many more projects, each building on a successful track record. You could get a hard money loan, getting instant cash that uses your property as collateral. Venture capital that comes from the private sector could be the answer for you. Creative financing is another possibility.
Turn to Your Bank for More than a Mortgage
You don’t have to get a mortgage for your fix and flip loan in West Virginia. You could ask for a considerable amount, such as $50,000, for a personal loan. Home equity loans are another alternative. You can usually get up to 85% of your homes value when you choose a home equity loan. Depending on the value of your home, that could be more than enough for to make your West Virginia fix and flip dream a reality. If you run a business, a line of credit might work. If you don’t own a business yet, your fix and flip projects could become your small business, opening the door to financing opportunities.
Turn to Someone Who Has Similar Goals
This might be your chance to find a partner for your West Virginia fix and flip adventure. Talk to someone you trust about becoming your business partner. It could be a co-worker, your best friend, or someone in your family. Really think about your choice. You don’t want to cause friction and hard feelings when obstacles arise.
Find Out Who Your Friends Are
As you consider diving into a fix and flip property in West Virginia, this could be the time when you find out who is willing to take a risk with you. Good friends and members of your family may have have the means to loan you money for your project. When you approach them, you need to make it clear that you plan on repaying them in a short amount of time. You just need someone who will help you to get started. Don’t be forceful or disappointed if it doesn’t work out. It just means you need to find other lending opportunities.
Do Your Research First
Before you start looking for lending sources, you should go the extra mile. Hunt down your property. List all your costs, including the property itself, repair work, and the fees that are behind the scenes. This means your taxes, the cost of electricity, water, and sewage. You have to remember that real estate will get a percentage of your sale, unless you decide to sell it by yourself. You can be a part of the fix and flip trend in West Virginia. You simply need to plan for it first.