There’s a tremendous amount of money to be made in fix-and-flip operations in this country, with more than 200,000 homes being renovated last year and an average gross profit of $65,000 per home. The trouble is, it’s hard to break into the fix and flip business if you don’t have the cash to purchase a home, make the necessary renovations, and then find buyers for your latest fix-and-flip. Here are some of the best ways to acquire the funding you need to be a successful fix and flip entrepreneur.
Loans from Family and Friends
Your personal connections are one of the best ways to come up with financing for fix-and-flip properties. You’ll probably get the most reasonable interest rates on the market from family and friends, and if you happen to have poor credit, that won’t be as big an issue with these sources.
If you’re in a situation where you have all the knowledge you need about house flipping but lack the cash to carry through on it, your best bet might enlist the aid of a financing partner. Your partner may bring more to the table than cash, and may actually help you with the planning and managing of your operation, and they might also help with finding the right opportunity.
Home Equity Loan
Another good source of funding is to use the equity built up in your personal residence as a possibility for income. You might also be able to establish a home equity line of credit by using your residence as equity, and this has some advantages as well. With a line of credit, you would only have to draw on the balance as needed and could keep some cash in reserve to cover unanticipated circumstances.
Looking for a Fix-and-Flip Loan?
If you’re looking for a fix-and-flip loan, we might be able to provide financial assistance. Contact us at Impact Commercial Capital, so we can explore some possibilities that might provide you with the needed capital.