Sacramento Fix and Flip Loans
Sacramento Fix and Flip Loans
Sacramento, California is an ideal real estate market for the art of fixing and flipping houses. One of the most recent median house price market value in this area was $306,000, based on over 2,300 home sales. This is a price range that might appeal to your typical real estate investor because it gives them plenty of room to grow the end sale price. And that’s where the term “fix” comes in. It’s one of the two critical components of the “Fix and Flip” real estate investment strategy.
What’s a Fix?
Some real estate properties aren’t very valuable. In fact, they’re in desperate need of repairs, and that’s exactly why they’re going to sell for below market value and often sell for some of the cheapest prices on the market. Maybe it’s a plumbing problem. Maybe it’s a roofing issue. Maybe there’s not enough bedrooms to appeal to average buyers in a certain location. And maybe it’s all three of those things, and the home is sold for a very low price. Here’s where the potential to earn comes in.
Since a hard money lender is typically the type of investor who understands the Fix and Flip, you’re likely to qualify for loans if you have a solid plan to fix the property. It’s the “Fix” that is going to net you some serious profit in the end. You buy a very cheap house on the real estate market, and then it’s time to “flip” it. You’ve seen the shows. They’ve invaded American television channels for the last decade, as people have taken the flip to new extremes, making an entire career out of repairing worn out houses and selling them for mind-blowing prices.
Once you’ve purchased a very cheap house on the Sacramento market, it’s time to come up with your plan to flip it. It’s the “Flip” that will give you your profit, and if you do it right, you can make an outrageous amount of money doing this type of investing. Why? Because that roof that made the house unsaleable now is fixed and upgraded at an affordable price so that you can hike the price several hundreds of thousands of dollars. And that makes your hard money lender extremely happy. They’re going to make a profit just like you are.
Hard Money Lenders
The bulk of the time, traditional banks don’t want to deal in the fix and flip model. They deal mostly in endeavors that require a great credit rating and solid income. Flipping houses doesn’t take stellar credit, though. You are going to get a loan based on your investment plan and your plan to fix the property and then flip it, not on your income or credit rating. You’ll basically be giving a portion of your profits to the hard money lender, and this is going to work out great for you AND them because none of this would be possible without that loan that will allow you to flip the house.
A hard money lender is going to take a huge look at your plan to flip the house. Do you have a plan to make cheap repairs? Do you have some inside knowledge of remodeling and flipping houses that means you’re going to be able to score a huge profit? If so, then your hard money lender is likely to approve you for your loan, and that’s the beginning of your success.
If you’re ready to move forward with your project, we encourage you to contact us. Fill out our contact form, and send us information about the terms and conditions you need for your next hard money loan.