Flipping houses isn’t just a hobby for professional builders these days. If you have the desire, you canbecome a full-time member of the fix and flip movement. The biggest hurdle for most people is coming up with the needed funds to make an initial purchase. Fortunately, the ballooning of this industry hasled to more funding accessibility. You just have to know where to look.
Lots of prospective borrowers shy away from this option, as it doesn’t feel official enough and they don’t know exactly what steps to take. If you are able to find someone willing to issue a personal loan with a decent interest rate, there’s no better way to get money fast than through an angel or individual investor. This can be a friend, family member or a trustworthy business acquaintance. If you’re looking to fix and flip and don’t need an overwhelming amount of cash up front, it shouldn’t be too hard to find a private lender.
If all goes well, you might start working consistently with someone willing to bankroll your projects. That person could know additional financiers looking to get involved, and soon you’ll be able to work on more projects and bring in more revenue for yourself and your investors.
Online lenders have opened the doors for a new source of capital that works for just about everyone involved. Instead of asking one person or a bank to put $100,00 on the line, see if you can get 100people to each chip in $1,000. This creates less risk for your lenders while still getting you the necessary funding. These platforms create an easy investment tool for people looking to put money into real estate without buying their own land, so those interested in a fix and flip project can really benefit from crowdfunding services.
Traditional Bank Loan
If your finances are good and you have decent cash flow, there’s no reason not to see about obtaining a bank loan. While standard lenders can take awhile to release funds, you stand to get strong terms and dependable financing if you go through a bank. As long as you don’t need immediate access to the money, it’s at least worth looking into this option.
When you know how to fund your fix and flip project, you take out a lot of the stress and uncertainty out of the project. Find a money source that works for you and get to work!