5 Things to Consider Before Taking a Fix and Flip Loan

While watching TV shows that showcase the act of fixing and flipping, the concept seems simple enough. Buy a run-down and dilapidated house for next to nothing, get contractors to fix it up, install state-of-the-art fixtures, paint it in colorful shades, sell to the highest bidder and make a large profit. As with most things, however, real life and reality TV are not the same. If you have been considering taking out a fix and flip loan and replicating what you see on TV, you will be wise to consider the 5 points outlined below first:

When is it worthwhile to fix and flip?

The best time to sell houses is when the economy is flourishing—people won’t be looking to buy houses if they are struggling to make ends meet. Additionally, you want to work towards completing the project in time for spring. Research has shown that this is the best season to sell houses, and coincidentally, the flowers will be in full bloom, giving the new house a better look than, say, summer.

What are the things to avoid while planning a fix and flip?

A common mistake among rookie investors is buying a building for a cheap price without considering its location.No matter how well you fix a house, if it is situated in a run-down area, there is a limit to how much it can be sold for. Also, getting a fix and flip loan will be difficult if you cannot prove to the lender that your project has ample potential. Conversely, while trying to buy a house in a good area, be careful not to overspend. Remember that the goal is to buy a house, fix it up, and sell it while still making a tidy profit.

Is prior experience needed?

If you have never fixed and flipped a house successfully in the past, you will have a hard time convincing private lending companies to invest in your project. An easy way around this is to partner with a contractor with considerable expertise and years of experience working with fix and flip investors.

1. Where can I get great fix and flip loan offers?

Banks do not offer loans to investors that are looking to fix and flip, they regard the venture as being too risky.Therefore, the best option is to get a fix and flip hard money loan from private lending companies. These companies offer loans at affordable rates to investors looking to fix and flip within a short period. If you live in California, particularly around San Diego, Los Angeles, or Orange County, Louie Loans is your best bet. Visit their website today and get started on the path to success in the real estate business.

What do I need to secure a loan?

Residents of San Diego, Los Angeles, and Orange County can get a free consultation from Louie Loans. Click here to have your case reviewed at zero cost. If you are eligible, you can get a loan within 2 weeks of application.