Financing for Home Flipping FAQ offers you a quick guide to how to get financing when Flipping on The Main Line PA. So you’re planning on calling your traditional mortgage lender to finance the property that you want to fix and flip here in Newtown Square, Haverford, Ardmore or Wayne PA. Please don’t call them yet- watch this video first and contact my team before you lose a ton of money!
I get it, I was shocked too when I found out that the financing process is totally different when it comes to flipping houses. It was overwhelming. Hi I’m Kimmy Rolph with Berkshire Hathaway Fox and Roach. As an agent who represents multiple investors, I’m here to save you some time and money by sharing a few key points that will help you decide whether or not you’ll actually make money on your proposed property to flip.
Most traditional mortgage lenders don’t provide loans for fix and flip projects. It’s a ton of liability for their company because these homes generally have safety or health issues. They’d really love to lend to you for a move-in ready home or a safe home that just needs some aesthetic updates. A house that’s in really bad shape AND ugly… Not so much.
So who can you call to gain access to funding if you don’t have the cash sitting in your account?! There are a few options.
Hard money lenders can help you at a cost because they’re willing to take on the risk of the home. They’re generally a group of people or an individual who will help fund your project at a higher interest rate and a lower loan to value ratio. They can close the transaction much faster than a bank which puts you in a better position when you’re offering to purchase the property. These loans generally have repayment time limits on them before they start getting even more expensive. But if you are working on a fix and flip project, you should be ok with that because you want to finish your project as soon as possible- otherwise, your holding costs are going to start eating into your profit.
If you want to discover other ways to find funding for building up your real estate investment portfolio, make sure you like and follow this page so you are on our list for videos. If you found the Financing for Home Flipping FAQ useful, please reach out. I’m Kimmy Rolph and I am here to help you make the most of your Main Line PA real estate experience by guiding you every step of the way. Kimmy Rolph sells The Main Line and local areas.
