What Are Fix and Flip Loans?
Rehab loans have a specific function. They provide you with the funding needed to buy the property, make some renovations and sell it to an end-buyer. Although people may choose to get a conventional loan to meet these needs, that type of mortgage was not really intended for this purpose and the process doesn’t typically lend itself to the needs of investors. A fix and flip loan is a kind of bridge financing meant to help investors quickly purchase the property, fund the renovations, and list it for sale or refinance into a long term loan.
These loans typically feature:
- 12 to 18 month loan terms
- Variable loan amounts from $75,000 to $3 million
- Interest rates starting at 8%
- Up to 90% financing for experienced investors
A fix and flip loan is not intended for people to use for homes in which they intend to live, but it can meet investor needs quite handily.
How Does a Fix and Flip Loan Work?
Unlike a conventional mortgage, hard money loans come from a private lender like Asset Based Lending. Private lenders have a lot of flexibility in the types of loans they can make. This means that almost everything governing the process is different. Private lenders do not need to set loan terms such that a government-backed agency will guarantee the loan or buy the debt. It often results in a shorter application timeline and a quicker closing date.
In return for these benefits, an investor has to meet a unique set of qualifications. Specifically, fix and flip lenders consider the project more deeply than the investor’s creditworthiness, although both play a role in this type of loan.
Why Do Investors Choose Asset Based Lending for Fix and Flip Loans in New York?
If you want reliable funding for a fix and flip loan, you need to partner with a dependable private lender to provide financing in an efficient manner. This is where the Asset Based Lending team excels. Since we are also experienced investors, we have the skills needed to identify a good New York project when it arrives. If you have done the research and meet our lending requirements, we can act as quickly as you. Our average closing time is 10 days, although it may be shorter than that. We provide personal service with custom loans based on the project, and are happy to start the qualification process after a short phone call.
Fix and flip investing can be an excellent way to grow your business in New York. If you are ready to get financing that meets your project needs in every way, contact Asset Based Lending to learn more. Get pre-qualified today.