Fix and flip projects are some of the most accessible ways to generate revenue in the commercial real estate market. Purchasing older properties and breathing new life into them so they can be sold at a higher price appeals to both seasoned pros as well as those who are new to commercial real estate investments. However, one of the big challenges in taking advantage of fix and flip opportunities is the need for capital. Fortunately, there are fix and flip loans designed specifically to help investors get the capital they need for property acquisitions and renovations.
How Fix and Flip Loans Work
Traditional mortgages for residential properties are structured around the current market value of the home you want to purchase. This method is not a good fit for fix and flip projects, because there is a gap between the purchase price and the cost of renovations. Fix and flip loans are more comprehensive, and are based on the value of the property after renovations, so commercial real estate investors have the capital they need to acquire properties and perform the necessary rehab to improve the overall value. Fix and flip loans offer high loan-to-cost ratios and friendly terms, because every fix and flip project is unique, and some require longer renovation schedules than others. Most fix and flip financing solutions even offer interest-only payments.
Securing Fix and Flip Loans
Traditional lending channels do not offer fix and flip loans. The best way to secure a fix and flip loan is to work with a financing partner that understands commercial real estate markets. Since the value of the property itself is the key factor in securing financing, lenders who offer fix and flip loans are willing to work with commercial real estate investors who have less-than-perfect credit.
Get the Financing You Need
At The Capital Rams, we provide fix and flip loans to commercial real estate investors nationwide. Whether you are taking on a single-family fix and flip project, or you are flipping a multi-unit property, our team will create a financing strategy to ensure success at every step of the way. Contact The Capital Rams today to get started.
To learn more about Fix and Flip or investment rental loans click – www.thecapitalrams.com/fix-and-flip