How to Find a Reliable Lender for Your First Flip
Having a reliable lender back your real estate investments is crucial to ensure your venture is successful. But where can you find a reliable fix and flip lender?
If you’re new to flipping properties or don’t know where to start looking for lenders, there are two ways to find reliable and trustworthy hard money lenders:
Then, consider the additional services they offer, such as help selling the property. Beware of fraudulent and fake lending websites. Ask for references from prior borrowers.
What’s more, your go-to may be able to introduce you to lenders they rely on. This builds trust and can result in easier negotiations with the lender down the line.
Plus, networking with an experienced flipper will improve your business savvy and help you avoid rookie mistakes.
Leveraging a Lender
Approaching lenders for a fix and flip loan can seem daunting. Showing up informed and organized is the first step. To strengthen your case, you’ll need to provide two key, detailed documents:
Clearly, state why your improvements are necessary. Giving the lender a transparent report shows professionalism and builds trust.
Double check your costs and confirm your estimates with the professional who will do the work. If you come across as unprepared and naive, chances are you won’t be able to secure funding for your fix and flip project.
Then disclose the projected selling price of the property and back up your claim with recent sales of comparable properties. Proving you can increase the value of the property significantly increases your chances of securing a loan.
Select reputed and reliable lenders in your area and make an airtight case for your fix-and-flip property to secure a private lender loan. When you get a fixed money loan, stick to your planned repair and renovation budget to avoid overspending. Keeping your costs in check and budget organized will ultimately help make your first flip a success.
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