The fix and flip market is quickly rising in popularity across the country, and for good reason. It’s a highly profitable business when done well and correctly, with a return on investment as high as 35%. They have become one of the most demanded loans in Metro cities such as Phoenix, Los Angeles, so it’s important to know the business and to have tools that can help determine the quality and likelihood of a Fix and flip loan.
As a borrower, what are lenders looking for? What are the common mistakes that buyers make when applying for a fix and flip loan? Lenders generally want to see some of the following:
For construction loans lenders will also look at the following factors:
This is merely a basic breakdown, you are encouraged to research these points more thoroughly if you are serious about getting into this business. There are thousands of combinations amongst the factors since each fix and flip project is unique. Our calculator lets you change scenarios adapt to the varying situations, such as:
Unlimited options can be explored and then submitted for actual approval to lenders without having to enter your Social Security Number or other confidential information. Some borrowers are afraid to disclose the property address for fear of someone swooping in and “stealing the deal”, although this hardly ever happens. We allow you to find all the answers above without even entering the property address if you so wish.
Since most fix and flip loans are arranged with private investors through mortgage brokers, you will benefit from the exposure to the largest network of hard money brokers and lenders in the country. Get started now!