Many people have watched the popular home remodeling and house flipper TV shows on the HGTV Network. Well, flipping is a real thing, not just some interesting TV shows. In fact, more than 200,000 homes have been flipped in each of the last several years across the United States, producing an average gross profit of more than $60,000. Yes, the fix and flip business is a real investment business, not a hobby.
Like any business venture, the fix and flip business requires funding. Among the sources of funding are various fix and flip loans which are needed to help fund the purchase and renovation of a property so that it can be sold or rented out.
How to Approach a Fix and Flip Project
There are four key steps in a successful fix and flip project:
- Finding a suitable property.
- Getting necessary funding.
- Doing the renovations.
- Successfully selling the property at a profit.
Fix and Flip Loan Options
There are five keys to successfully flipping houses:
- Seek insights from others who have house flipping experience.
- Only buy properties that have plenty of upside sales potential.
- Be realistic about all expected renovation costs.
- Plan strategically and thoroughly. Make renovations purposefully.
- Don’t do it all alone.
Here are 7 ways to get funds for a fix and flip project:
- Use a home equity loan if you have at least 20% equity in your primary residence.
- Draw funds from a 401(K) account, (unless you are close to retirement age.)
- Apply for an unsecured personal loan.
- Seek seller financing where the seller acts as the lender.
- Get a business line of credit if you are already an experienced house flipper.
- Find a financing partner.
- Assemble a family and friends investment group.
Seek Expert Funding Assistance
Contact Evolt Capital, based in Chicago, IL for fast, innovative, and customized financing solutions. We provide fix and flip and other property loans, working capital, and other business loans that help people to embrace new opportunities and achieve long-term success.