How to Get Fix and Flip Loans in Houston

Dealing in old properties can be a lucrative source of income if you can get adequate guidance with the financing. Flipping a property means buying a property, improving and renovating it, and then selling it at a higher price. Fix-n-Flop loans in Houston are available to investors to help bridge the gap. 

The investors can use the money to renovate the property and then use the extra money from selling the property to pay off the loans. Usually, they retain enough to make a substantial profit. These are short-term loans and are becoming increasingly popular among smaller investors. Here is how you can avail of them.

Look for a Reputed Lender

Banks are often not eager to sanction fix-n-flop loans because most properties are distressed properties, and they might become a liability, and the banks don't usually want to risk their money. 

 

However, other Non-QM lenders for real estate investors can give you direct money. These loans are exclusively for residential investments, so it is easier to get a loan sanction than a commercial property. A reputed lender will give you the money to cover the upfront costs of renovating the property. 

Checking the Documentation

One of the things about fix-n-flop loans is that they are mostly unsecured loans, and they are short-term loans, and the cap is not very high. The duration is usually between 12 to 24 months, and there is no penalty if you repay the loan early. So before the lender grants you money, you need to be sure that all the documentation is in place. 

 

The fix-n-flop lenders in Houston, TX, need to ensure that the property does not have any legal disputes that may cause problems while putting it back on the market and risk the sale. Hence, before you apply for the loan, making sure that all the papers are in place would be prudent. 

Plan of Action

To avail of fix-n-flop loans in Houston, you need to have a plan of action. These projects can be of many types, and you can buy a very distressed property at a heavily discounted price and put it back on the market. 

 

Or, you could buy a family house and make significant home improvements, like redoing the kitchen and bathroom, changing the wallpapers and floor tiles, creating additional storage, and giving the property a fresh coat of paint. 

 

Or you could buy a plot of land with a dilapidated house and demolish it to construct a new 2 unit residential property. The lender will check the market price and go through your improvement plans before sanctioning the loan.

 

With help and guidance from fix-n-flop lenders in Houston, TX, you can enter the real estate market even as a beginner and start making money.