Center Street Lending shares a presentation discussing how you can get the money you need for flipping homes.

1. Funding Options: How You
Can Get The Money You Need

2. Real estate has proven one of the
most stable investments.
Typically, real estate offers
opportunities of income in the
form of rental properties through
rent. As places increase in value
over time, owners accumulate
wealth through monthly
payments from tenants.

3. Another way to gain income
through real estate is the fix and
flip route. This entails purchasing
property, repairing it to improve
it as quick as possible, and then
resell it for a profit.

4. Investors find this fix-and-flip
method particularly attractive.
But, repairs to these cheap
properties are expensive. Few
people have the cash required to
purchase the properties.

5. There are options for financing
these types of loans. The type of
loan depends on the situation of
the person in need of the loan and
the requirements of the lender.

6. Friends
and
Family

7. If you have a generous family or
circle of friends, you may be able
to ask them for help. You may not
even have to pay much or any
interest if you have friends and
family rooting for you!

8. It’s also a great way to get out of
fulfilling requirements such as a
credit check. But remember when
you go this route, how asking for
money can be awkward and
embarrassing.

9. A debt between friends or family
can risk not only the property and
your credit, it threatens the life-
long relationships people
important to you.

10. Mortgage
company

11. A mortgage company can issue
you a standard loan just like any
other bank. Of course, you pay it
back with interest, over a span of
twenty-thirty years.

12. This is arguably the most obvious
option for financing your fix-and-
flip property. This option is very
common, but it also has numerous
drawbacks. The requirements
tend to be strict. There is no
flexibility if you don’t satisfy the
requirements.

13. Plus, there is no guarantee that
you will be accepted.

14. Even if you are granted a loan,
they tend to be for very long terms
(20 or 30 years). Many banks
charge a large fee for paying off
the loan early, and this will be
detrimental if you plan to flip a
house quickly!

15. You may have to decide between
paying off a loan for the next 29
years versus taking a big loss on
the property.

16. Cash

17. If you have the cash to purchase
the property outright, this may
not be a bad plan. This allows you
to bypass credit checks and
eliminates the need to pay any
interest, as with the previous
method.

18. It also prevents the uncomfortable
situations that arise when you
borrow money from friends and
family. However, there are still a
few drawbacks. Cash seems great
until you consider it will actually
cost you to renovate your
property.

19. Hard
Money
Loan

20. A hard money loan is often the
best option for a fix-and-flip
project.

21. Why?

22. First of all, it’s more flexible
than the other options. If your
credit check doesn’t pass, it’s
not the end of the road. Hard
money lenders are mostly
private, indicating their
flexibility with loans.

23. Instead of mortgage loans, the
duration of hard money loans
are short. Because they’re
often 9 months or shorter,
don’t anticipate the need to
pay large fees to get out of a
loan that didn’t make sense
from the beginning.

24. Another perk of hard money
loans is that they often
include extra cash for
renovations. With the
exception of the down
payment, you will need little
to no cash to get into the real
estate fix-and-flip industry.

25. Contact Center Street
Lending today to get started
with your hard money loan.