Have you been eyeing a property that you would really like to revamp and flip for a quick profit? This can be a lucrative business, especially if you have the skills and resources to fix it up fast and turn it for a quick profit. Now, if you have a few hundred thousand of disposal income to invest in, you should be all set. But if you do not, you will need to find an investor who can help get the ball rolling. Here are some tips on getting the best financing for your next house flip. 

Criteria for a Fix and Flip Loan

For a house flip loan, you may not be able to go through a traditional lender for conventional financing. This is because they require a lot to be in place before you can qualify. The home must be in good condition and pass several inspections prior to final underwriting. With fix and flip loans, the loan criteria is more lax. Hard money lenders know you need the cash up front to be able to fix the home as quickly as possible, sell it and pay off the loan. They look past major structural issues and offer to loan the money anyway. Qualifying for fix and flip financing may not be as complex as traditional lending. A low FICO or high debt-to-income ratio is often overlooked and you can still obtain a decent APR. Because you are dealing with the lender directly, it also cuts down on the time it takes to get the money in your hands. 

Where to Find a Lender

Fix and flip lenders for investment property loans are easy to find. Most businesses work with clients online in order to start the application process. From there, they will determine if you are eligible for a short term fix and flip loan and contact you about the necessary documents they need moving forward. You may or may not need to physically meet with a loan officer or broker prior to closing on the loan. Their goal is to get you the cash so can start working on your construction project right away. 

Talk With Other Flippers

One way to find good financing for your flip is to talk with other flippers. Who are some of the lenders and companies they have worked for in the past? They can tell you about legitimate, hard working businesses who want to see their clients succeed and who to steer clear from. A lot of investors who loan out money also work through word-of-mouth advertising. This way if you know about a past positive lending experience, you will want to choose that company vs their competitors. 

The goal is to cut through all of the red tape involved with traditional financing. Finding the right lender to help you launch your real estate investment is easy, once you know where to look. The result will be successful real estate sales now and for years to come.