House flipping can be an instrumental step to take if you want to invest in real estate. Rehabilitating damaged or old houses and selling them can be profitable, but only when you understand the steps to take. Firstly, you need a sustainable funding source to handle the related needs. These are the house rehab funding sources you can utilize.
Conventional Mortgage
You can secure the funds needed for the house flipping project when you visit and work with conventional lenders in the market. Credit unions and federal and state banks are the conventional lenders you can work with to secure conventional mortgages. Most of these banks offer conventional loans that you can utilize as rehab funding for the house flipping project. You should, however, understand that the application process can be long and hectic.
Owner Financing
As the seller of the flipped property, you can lend funds to the buyer, making it possible for them to secure a mortgage and pay you back in installments. Once the buyer secures the mortgage, owner financing can be a good stream of income to the seller. With a favorable arrangement, both the seller and the buyer benefit from the project in the long run.
Hard Money
Seeking hard money services should be the alternative when other financing options fail. When you fail to secure loans from conventional lenders, the alternative to property rehab funding should be working with hard money lenders. Unlike other financing options, hard money lenders consider the property’s value to determine the amount you can receive. The hard money application process is fast, and repayment terms are favorable for real estate investors.
Government Insured Loans
If you consider government-insured loans, you can successfully secure funding for your next property rehab or flipping project. Note that there are programs under the Federal Housing Administration that can help you secure the funds you need. These programs are vital as you get guidance on utilizing the funds and successfully implementing your projects.
Private Lending
After reviewing your project and the collateral you present, a private lender can help you secure the rehab funding your need for the flipping project. You, however, need to qualify to enjoy private lending services. Note that the screening and approval process depends on the flipping project and the funds you need.
House flipping can be a profitable real estate investment. You, however, need a sustainable rehab funding source to achieve your objective. Get in touch with Lode Capital today to meet your expectations.