Los Angeles Fix and Flip Loans
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Fix and Flip Hard Money Loans in Los Angeles
Have you been dreaming of turning your fixer-upper into a cash cow? It’s easy and really not that hard! After all, investors are looking for properties that need to be fixed up before they can turn a profit. And banks don’t lend money to flippers to help them purchase homes in need of repair. But with our Los Angeles Fix and Flip loan, it's easier than ever.
Benefits of Fix and Flip Loans in Los Angeles
If you're a flipper and need money fast, hard money loans are perfect for you. This type of financing is beneficial for people who have experience as well as beginners because it doesn't require a wait to be approved or denied from banks. We offer loans to fix and flip properties in Los Angeles, which can provide you with much more stability than traditional home loans. You use existing collateral to get fast funding with this loan.
Hard Money Fix and Flip - Best Types of Financing
Fix and Flip hard money loans are best for property flippers who need money fast and don’t have time to wait for banks to approve or deny their application. Los Angeles fix and flip hard money loans allow both experienced and beginning flippers to get funding fast using existing collateral
Cash-Out Refinance – This loan is perfect for those who have plenty of equity in an existing property or home.
Home Equity Lines of Credit - A HELOC is best for contractors that are looking to invest in a project. If you don't know what project you want, a HELOC will give you access to money for investing in your home.
Traditional Mortgage Loans - If you’re looking to buy a property and keep it for years, this is the loan for you. However, not a good type of loan for fix and flip investors.
A Better Way For Fix and Flip Investors
As a property investor, you need to make sure that the repairs and renovations you undertake with your fix and flip loan are manageable.
Our top pick for most investors is a Los Angeles fix and flip hard money loan. This type of loan is secured by existing real estate property to cover the purchase and renovation costs for another home. They're called "private money loans" because it's bypassing the traditional lending process and connecting you to real estate investors who have cash on hand to lend.
What it Takes to Qualify For a Fix and Flip Loan in Los Angeles
When it comes to private money loans, small, first-time and beginning fix-and-flip investors get an easy approval process because, as long as they have adequate collateral, they don’t need a lot of real estate experience or a perfect credit score.
Although private fix and flip loans can be approved faster than traditional mortgages or land loans, they're more expensive. There's a lower qualification threshold to meet, however, and you can receive approval and funding in as little as 7 business days.
It is an appealing option for many real estate investors because of the fast turnaround. There are, however, some qualifications that you need to provide when applying for one.
- A credit score of 550+ is required. A higher score, 640+, is preferred
- The optimum debt to income ratio is between 30 and 45%
- If you take DIY approach to fixing and flipping houses, you'll need at least one or two previous projects.
Financing Limits to a Fix and Flip Loan
Traditional loans have specific terms, interest rates and fees. Just like traditional loans, fix and flip loans also have these same terms with rates and fees that typically range from lender to lender, but are usually as follows:
- 1-2 Year Term
- 7 Days Funding
- Interest Rates Start From 7.99%
You'll make interest-only payments during the initial term, with repayment of the principal delayed until the end. There is typically no penalty for pre-payment.
Los Angeles Fix and Flip loans are only available to real estate investors with sufficient equity in the property and home improvements. Hard money lenders measure their lending ability using either the LTV or ARV strategy. Lenders tend to be more accommodating with home improvement borrowing terms when using ARV as a measurement standard.
Is Fix and Flip Loan Right Option for You?
The world of fix and flips can be tough, but there are options. If you're experienced with flipping houses or have the help of a licensed contractor, a hard money loan may be right for you. With Houses in competitive markets, a hard money loan offers several benefits to those looking to compete against cash buyers. Contact us today to find out more information about fix and flip loans in Los Angeles.
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