Looking into fix and flip loans to help you find a real estate investment? If so, you may be wondering exactly what this type of loan can offer you. There are numerous benefits of getting a fix and flip loan, which you can find out more about in this article.
Understanding Fix and Flip Loans
As a type of real estate loan, fix and flip loans are intended for investment purposes. This is in contrast to mortgages, which are taken out by homeowners who intend to stay in the property for years to come. Fix and flip loans come with a relatively short term of between 9 to 24 months, although it’s possible to have a slightly longer or shorter term.
You can make use of the loan to make improvements on a property, whether you are carrying out renovation work or even construction work. After which, you can sell the property at a profit. With a fix and flip loan, you can reap several benefits – read on to find out what they are!
Fast Approval Times
When it comes to investing, you may not always have the luxury of time to wait. Once an opportunity presents itself, you have to act quickly. With the fast approval times of fix and flip loans, you will be able to do just that. You will find that the application process and closing period can be completed much faster with a private lender than with a credit union or bank.
Greater Flexibility
Looking to carry out improvements on a fixer upper before selling or renting it out to a third party? A fix and flip loan will suit your purposes perfectly. With a mortgage, you will find that there are limitations on the type of renovation you can carry out, but you get greater flexibility with a fix and flip loan. This also means that you won’t have to pay a large sum out of pocket in order to fund the improvements you are intending to make.
Secure Investment
The collateral for a fix and flip loan is the property itself. This means that in the event that your project doesn’t go off as planned, you won’t need to worry about losing your home as you would with a traditional mortgage. In addition, your credit rating can also be affected when you fail to make mortgage repayments on time. In contrast, a fix and flip loan is a relatively secure investment as you will face none of these problems.
InstaLend Is Your One-Stop Shop for Real Estate Loans
Regardless of whether you require a new construction loan or a fix and flip loan, InstaLend is your reliable one-stop shop. Did you know that we can get you a loan commitment on the same day and close the loan within a few short days? With no income requirements, no upfront fees, and a quick approval process, please feel free to contact us if you wish to apply for a loan today!