Thinking of investing in a fix and flip property? This may be a great way to turn a profit fast and create a new income stream. Often, time is of the essence, and you need to move quickly to make the deal- which means having access to money.
How will you fund your next fix and flip? Consider these options:
Find a Partner
Got a family member, friend, or colleague with access to money that you want to go into business with? This could be one way to access the funds needed for a fix and flip. Pooling resources can give you both more buying power- and the ability to turn it over exponentially.
If you don’t have an individual in mind, you can also choose to get involved with investing groups and collectives that invest in the same project to share a portion of a similar investment opportunity.
Get Money Fast
Hard money loans are fast, typically with terms that are between six and twelve months. Generally, the interest is high, but since the duration is short, fees are manageable. Some lenders will reassess and extend the terms of a hard money loan, especially if they see progress and potential in your fix and flip property.
Do you own a home? Cash-in on the equity that you have built with a cash-out refinance plan. Basically, you are refinancing your own home to take out any equity for your next fix and flip. This may also require a decent credit score and a low debt-to-income ratio for lender approval.
Borrow on your Home
Speaking of your home, a home equity loan is another way that you can get the money that you need to act fast on a fix and flip property. The interest rate is fixed and typically lower than a cash-out refinance or short-term loan.
Thinking about a fix and flip? This could be a significant income stream for you- talk to the money experts at Crimson Stone Capital Solutions about funding options for your investment that may be available to you.