How to Finance a Home you want to Flip
Right now, there are so many homes on the market that are perfect for investing in, that it would be crazy not to try and give it a go. Finding the right house to invest in though takes a little time. I would be happy to help you find some homes in the Cortez real estate area that might fit what you are looking for.
If you are considering finding a home to flip, you will want the poorest looking home in the best neighborhood. This will most likely ensure you will recover your money back on the deal when it comes time to selling. Lear more about fixer properties here.
How to finance a flipper
- The first way is to pull out equity from a home you already own.
Financing a fixer may not be the easiest thing to do but it can be done with some skill and some cash in your pocket. If your credit is good and you already own a home with some built in equity you can consider pulling some of it out to help finance an investment. (Visit our Verde Valley real estate affiliate for more on financing)
- Another way is to leverage your funds
This is a great way to get others involved if you so wish. You can advertise to real estate investors of your plans and have the investor front the money needed to purchase the home, you then can do the fixing and you both share the profits from the sale. (see my Mercer Island real estate connection for more buying tips)
- Locate a Hard Money Lender
This is a type of lender that lends money on what the home is going to be worth after the repairs are made. They send an appraiser to evaluate the job and loan a percentage on what the home could be worth once the home is up to their standards. The drawback is that these lenders stagger the funds instead of all at once. They keep tabs on the progress and send more money based on work completed so far. This type of lending works well for those selling the home within a year or so as the interest can be expensive. (see my 1031 tax exchange specialist for more on smart investing.)