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Philadelphia Fix and Flip Lenders
Philadelphia Fix and Flip Lenders
Delancey Street is a premier Philadelphia fix and flip lender. If you are a fix and flip real estate investor, we can help you get the funding you need. Fix and flip describes an investment transaction, in which a party invests in a property needing repairs for the purpose of rehabbing it for sale at a later time. The fix stage consists of a series of repairs and remodeling efforts. The flip stage consists of selling the rehabbed property to another party. The primary goal is to increase the market value of the property and to later sell for an amount much higher than the original purchasing price.
Common repairs to a newly acquired property include room additions like finishing a basement or adding a bedroom. The roofing may be upgraded and the kitchen remodeled as a part of the process. Steps are taken to boost the property’s curb appeal to woo in prospective buyers. Knowing which repairs will generate the greatest return in terms of enhancing the value of the property is the biggest challenge. Understanding how much to invest in those repairs is another critical factor in increasing return.
The moment the property is finished, it is listed for sale. The process of finding a new buyer or renter to live in that property constitutes the flip portion of the deal. The new buyer will take out financing to purchase the property. The closing occurs when the buyer completes the transaction. The investor should exit the deal with a considerable return on their investment.
Fix and flip investing is nothing new, but it has become popular due to cable television shows.
There is plenty of opportunity for newbie investors to get involved in fix and flip projects. Delancey Street helps new and seasoned fix and flip investors alike get the funding they need. We provide Philadelphia Fix and Flippers with the rehab loans they need to purchase properties. We provide fix and flip loans for people with no credit, or poor credit.
Philadelphia Fix and Flippers can’t turn to traditional lenders
In order to qualify for traditional lending used to purchase a property, certain guidelines must be followed. This means that a lender providing loans through Fannie Mae or Freddie Mac wouldn’t approve a loan for this type of property.
The majority of the fix and flip loans are funded by private or hard money lenders. Fix and flip lenders issue loans based on the value of the asset. The asset is the property. Private and hard money lenders will examine the property under consideration. They will discuss what repairs need to be made and inquire about the purchase price. The decision to lend is based on the property, not the borrower. This means you can secure financing with any type of credit. You don’t need income, assets or job history to qualify.
How can private and hard money lenders do this?
Capital from private investors used to fund the project aren’t regulated in the same manner as traditional mortgages.
The average fix and flip loan is short-term with a repayment period of five to twelve months. Since the loan is short term, you will not have to make payments during the term of the loan. You are supposed to sell off the property and pay off the loan. If you don’t do this, you run the risk of foreclosure.
Delancey Street is a premier Philadelphia fix and flip lender. We provide rehab loans / fix and flip loans, for virtually any type of property in the city of Philadelphia.. If you find a property you love, and one that you can “turn around,” we encourage you to contact us. We have funded properties all over the USA, and can help you get funding for your next fix and flip venture. We understand the difficulties you face when getting funding for a fix and flip.
What we look for in a fix and flip property
Most fix and flips are simple on paper. You tell us how much $ you need to buy the property, how much money you will invest fixing it up, and how much you can sell it for. Give us a business plan, showing an estimate of construction costs, how long it’ll take to do the construction, and when you will repay loan.
All of this information will help us give you an offer on how much money we can lend you, and at what rate.