Race Cars, Cheetahs, and Fix and Flip Loans: The Need for Speed

Beig/khaki Croft & Barrow Sandals - Shoes | Kohl's
Enjoy free shipping and easy returns every day at Kohl's. Find great deals on Beig/khaki Croft & Barrow Sandals at Kohl's today!

Kohl's in San Luis Obispo, CA at 205 Madonna Rd | Kohl's Hours and Directions
Shop Kohl's in San Luis Obispo, CA today! Find updated store hours, deals and directions to Kohl's in San Luis Obispo. Expect great things when you shop at your San Luis Obispo Kohl's.

Speed ​​matters. It can be the difference between winning the Indy 500, catching tonight's dinner, or making a profit on a real estate fix and flip project. Many real estate investors turn to hard money loans to finance the purchase and renovation of rehab properties, and the need for speed is one of the chief reasons why.

How can you "win the race" in the real estate renovation world?

Renovation projects are extremely time-sensitive, and require funding sources that can respond quickly. Here's why:

· Quickest Money Gets the Deal: In a high-density area like Washington DC, the competition for suitable fix and flip properties is intense. When foreclosed, abandoned or dilapidated housing stock comes onto the market, it's often the developer with the quickest access to funding that snaps up the property. If you can not arrange funding within a couple of days, you might miss a great deal.

TIP: The US Department of Housing and Urban Development's website has a portal that lists all foreclosed properties in the country. Check it out to see what's available near you.

· Timing your Sale : In most areas, the optimum time to sell a fixer-upper is constrained to a multiple-month buying season, usually starting in early spring. This means you ideally time your purchase and the completion of rehab to coincide with the selling season. A speedy private loan, available as soon as you need it, is the key to proper timing of your rehab project. A recent Zillow study puts the magic window to sell between mid-March and mid-April, depending on variables such as location and weather. Homes sold during this window sold 15 percent faster and for 2% more. That's real money in your pocket.

· Flexibility : Fix and flip or construction loans are often structured with a draw schedule, so that funding is released each time you reach a given benchmark (permitting, framing, etc). This ensures a steady flow of funds throughout the project. However, cost overruns and construction delays can occur, and developers often increase the project scope or timeline after initial funding. Whatever your reason for needing additional funds for your project, waiting for a new loan can slow the project down. Hard-money loans can be structured to include multiple phases, drawing on phase two or three only if needed, and money can be disbursed as quickly as the same day, so that there should not be any interruption to your project.

adidas Breaknet C Kids' Shoes
These kids' adidas shoes have a crisp look that goes with it all, from school uniforms to the latest streetwear. Your kid will move through their day with confidence. The rubber outsole gives those classic tennis-inspired vibes while the cushy sockliner delivers big-time comfort.

Women's Elizabeth and James 57mm Tory Gradient Aviator Sunglasses
Protect your eyes from the sun in style with these chic aviator sunglasses from Elizabeth and James.

Men's Van Heusen Traveler Slim-Fit 4-Way Stretch Dress Shirt
Impress in this Van Heusen dress shirt. Featuring a slim fit, this men's patterned dress shirt from Van Heusen adds standout style to your professional attire. Stretch fabric delivers all-day comfort.

Women's LC Lauren Conrad High-Waisted Jogger Leggings
Combine style and comfort wearing these women's jogger leggings from LC Lauren Conrad.

Women's Eddie Bauer Optic 1/4 Zip Fleece Jacket
Cozy up in the superior style and comfort of this women's fleece jacket by Eddie Bauer.

You may also like...