Investing in real estate is one of the safest investments
that you can possibly think about. They always have a good return and in times
of worst turmoil, they still never entirely lose the value. There are many ways to put your money into
real estate and make good out of it later on, but the one that we are going to
be talking about today is rehabbing a property.
Regardless of how amazing it is by the sound of it, not
every individual have the access to such big funds as to buy a property,
renovate it and then sell it off at a better price later on. But to make it
more ideal, there are hard money lenders or private money lenders who would
lend you the money to buy a property, with some funds over that to renovate it
as well. Fix and flip loans in Houston makes it possible for all the house
renovation enthusiasts to have shot at their skill.
Here are a few reasons that promote the growth of fix and
flip loans and its steady increase in demand in the industry of real estate.
Quick Approval
The biggest difference that the fix and flip loans draw from
other types of loans is the ease of approval. Normally you will have present a
fitting case to bank and wait at least 4 weeks or more before you hear even a
word about the approval.
The borrower is only just required to submit the requested
documents and can get his hands on the loan money as soon as even two days. There
will be certain conditions set on the agreement and several other documents
submitted by the borrower, but is still going to be much better than having to
wait on weeks before you hear anything about your loan.
Any Property
The policies of banks regarding what type of property you
can buy with the granted loan are always quite very strict. This is however not
the case with fix and flip loans. You may find a private lender that may be
interested in any type of property you are willing to get your hands on. A bank-owned, short sold, foreclosure or a dilapidated
property may be hard to convince a private lender for but is not completely
impossible as in the case of the bank.
Zero Prepayment Penalties And Additional Funds
Once you have taken a loan from any bank and now you are in
a situation where you can pay the loan before the payment date, you will be
subject to penalties. These penalties can take a toll on you at times when you
have applied for a cash flow loan for business.
While working with private lenders, you wouldn’t have to
worry about any of these sorts of penalties. Moreover you are given additional
support from reserved funds for the renovation of the house with an interest
rate. This is a lot more financial support than you could’ve thought of
getting.
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