Flipping Houses: Types of Loans
Flipping houses or buying properties to renovate and sell for a profit, has become a popular way to generate significant income. But to be successful, one must make sure that he or she has enough funding to accomplish it, and that usually requires house flipping loans.
What Do You Need to Know to Flip Houses?
Here is what you need to know to succeed in flipping houses:
First, develop a specific business plan, the scope of effort, budget, and timeline for your flipping efforts.
It is important to research your market area to find the right neighborhoods to flip houses in, because not every neighborhood is suitable. Neighborhoods categorized as Class B and C neighborhoods are usually the best choices.
Secure financing by getting house flipping loans. Consider the costs of property acquisition, renovation work, insurance, and marketing to sell the home.
Develop a relationship with a network of contractors that you can depend on to do superb work. That will include general contractors, electricians, plumbers, roofers, painters, and HVAC contractors.
Find houses to flip. Not just any houses, because you don’t want a property that has significant problems. Find houses that represent below-market deals to purchase.
After buying the property, get all the renovation work done.
Sell the house for the right price.
Types of House Flipping Loans
House flipping loans can come from sources such as so-called “hard money loans.” These are loans that are secured by the real estate property itself. There are also traditional mortgage loans such as construction loans, renovation loans, and cash-out refinancing—taking equity out of another property. Other avenues include private loans, personal loans, home equity loans, a Home Equity Line of Credit (HELOC), funds from alternative lenders, and even crowdfunding.
Seek Expert Financial Assistance
Contact Summit Commercial Capital, based in Broken Arrow, OK to get the right business loans to reach your business goals. We offer a comprehensive portfolio of business loans so we can find the right financial solutions for your business opportunities and take your business to new heights.