Fixing and flipping property is one of the easiest ways for investor to make money. This strategy entails buying property such as a condominium unit or a house, fixing it up, then selling it again. Of course, one will be needing some fix and flip real estate funding to do that so here are some of the best options that one can consider if he or she plans to do this.
The most popular way to finance this kind of venture is through a hard money loan. The happens to be a very good way of financing this sort of project because it is a short term loan that is easy to get. In fact, it is perfect for those who only plan to do up the property in a year and sell it off as soon as possible.
Now, the great thing about hard money loans is that they are extremely quick to process right after application. It is actually possible to get the money from the loan in just fifteen days after application since it is a short term loan of one to up to three years. The interest rate is pretty high though, ranging from seven percent to twelve percent depending on the lender.
To acquire this type of loan though, one will need to present his or her credit score, experience in flipping, and debt to income ratio. First, a credit score of a minimum of five hundred and fifty is needed with a debt to income ratio of thirty five percent at least. Finally, two to three years experience is needed in flipping properties.
The other choice would be the equity credit line consisting of the home credit and the property credit lines. The home equity line is a long term debt that has a fixed number of years depending on the agreement between the borrower and the lender. The other type is a more short term kind of loan wherein the term depends on the loan amount.
Now, it would take a while for approval of a home line of credit, possibly up to 45 days. As for rates, it would range from around four to five percent depending on the lender. Also, one is required to have a credit score of six hundred forty and above, a debt to income ratio of forty five percent, and a minimum equity of thirty percent in property.
As for the property line of credit, term would be twenty four months with thirty days approval time. The rates would reach up to eight percent but can be as low as five percent. For requirements, a credit score of six hundred sixty is needed, a debt to income ratio of forty five percent, and an existing equity of forty percent in property.
These are some of the best options that one can try out if he or she is interested in engaging in fixing and flipping of property. These loans are very easy to acquire if one has all the requirements. As long as he or she knows how to manage risk, he or she should have no problem.
The most popular way to finance this kind of venture is through a hard money loan. The happens to be a very good way of financing this sort of project because it is a short term loan that is easy to get. In fact, it is perfect for those who only plan to do up the property in a year and sell it off as soon as possible.
Now, the great thing about hard money loans is that they are extremely quick to process right after application. It is actually possible to get the money from the loan in just fifteen days after application since it is a short term loan of one to up to three years. The interest rate is pretty high though, ranging from seven percent to twelve percent depending on the lender.
To acquire this type of loan though, one will need to present his or her credit score, experience in flipping, and debt to income ratio. First, a credit score of a minimum of five hundred and fifty is needed with a debt to income ratio of thirty five percent at least. Finally, two to three years experience is needed in flipping properties.
The other choice would be the equity credit line consisting of the home credit and the property credit lines. The home equity line is a long term debt that has a fixed number of years depending on the agreement between the borrower and the lender. The other type is a more short term kind of loan wherein the term depends on the loan amount.
Now, it would take a while for approval of a home line of credit, possibly up to 45 days. As for rates, it would range from around four to five percent depending on the lender. Also, one is required to have a credit score of six hundred forty and above, a debt to income ratio of forty five percent, and a minimum equity of thirty percent in property.
As for the property line of credit, term would be twenty four months with thirty days approval time. The rates would reach up to eight percent but can be as low as five percent. For requirements, a credit score of six hundred sixty is needed, a debt to income ratio of forty five percent, and an existing equity of forty percent in property.
These are some of the best options that one can try out if he or she is interested in engaging in fixing and flipping of property. These loans are very easy to acquire if one has all the requirements. As long as he or she knows how to manage risk, he or she should have no problem.
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