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The Texas real estate market is booming and isn’t showing any signs of letting up anytime soon. Whether you’re a seasoned veteran or just getting started, there has never been a better time to be in the fix-and-flip business. However, unless you and your business have accumulated a significant amount of revenue over a number of years, you’re probably still relying on some form of a loan to purchase and renovate your properties. Applying for and securing a loan for a home you plan on flipping can be difficult, but it doesn’t have to be when you choose a hard money loan as your source of fix-and-flip funding.
Have a particular question about fix-and-flip loans? Use the links below to jump straight to that section:
- Fix and Flip Hard Money Loans
- What Kind of House Flipping Loans are There?
- How to Get a Fix-and-Flip Loan
Fix and Flip Hard Money Loans
When it comes to securing house flipping loans, the traditional process can be lengthy and tedious. This is just one of the reasons that many fix-and-flip businesses prefer to secure a fix-and-flip hard money loan rather than a traditional mortgage or bank loan. Anyone flipping houses in Texas will tell you that it can take months if you choose to wait on a mortgage, and you can forget about closing escrow in a timely manner while you wait for approval.
Hard money loans in Texas are the natural solution for a fix-and-flip business that needs a no-nonsense contract and money fast. If you’re not familiar with hard money loans, they are an alternative to traditional loans like mortgages or FHA loans. Ordinary loans usually look at the following elements to determine how much you qualify for—or if you qualify at all:
- Bank records
- Marital status
- Bankruptcy history
- Outstanding debt
- Credit score
- Job security
Because there are so many heavy regulations and restrictions imposed on banks, they may be forced to turn those away who otherwise qualify for small infractions. Businesses and individuals turn to house flipping loans like hard money loans to ensure that they get the money they need quickly and hassle-free. Because hard money house flipping loans are asset-based, your provider doesn’t care what your job history or credit score look like. Your loan will be based on the value of the property that you’re interested in purchasing. You can even qualify for a loan with no minimum FICO score.
Best of all, you can receive approval for your hard money fix-and-flip loan in as little as 24-hours. Rather than waiting for months only to find out you didn’t qualify, you can secure a hard money loan quickly and easily. Once approved, you can have your loan wired to you in a matter of days.
Having a Texas hard money fix-and-flip loan in your back pocket may even put you in a unique bargaining position. If a real estate broker is faced with choosing between buyers with cash in hand or someone going through a traditional bank, they will almost always choose the buyer with the hard money loan. Lenders may choose to pull out of a traditional loan in the middle of escrow, causing the real estate broker to find a replacement buyer.
What Kind of House Flipping Loans are There?
There are a variety of loans that exist to finance fix-and-flip projects; however, some loans are better than others. Mortgages are a way to finance a fix-and-flip purchase, but they can be tedious for a number of reasons. Banks use a pool of circulating lenders to finance mortgages, and the more hands you have in a deal, the more complex it becomes.
Mortgages are a long-term contracts and can last anywhere from 15-30 years. So if you’re trying to sell a house fast after fixing and flipping it, you might run into some difficulties convincing a buyer to take it with a mortgage attached.
Alternatively, an FHA (Federal Housing Loan) is government insured loan that requires a 3.5% down payment. There are some relatively strict qualifications when it comes to FHA loans. Typically, you will need a fairly low credit score in order to qualify for one. Though it’s not impossible to use an FHA loan on a fix-and-flip project, as a business or individual it can be quite difficult.
The best type of loan for a fix-and-flip project or investment is a hard money loan. There are two kinds of hard money fix-and-flip loans: residential and commercial. The terms and conditions of the loans are essentially the same; the only difference is the type of property you plan to invest in. Here are some of the properties you can invest in with hard money loans for residential properties:
- Single-family homes
Texas hard money house flipping loans aren’t just limited to purchasing; you can use the money you receive to cover the costs of remodels, complete rehabilitations on properties, and holds. If you get behind on paying a contractor who’s making renovations on your newly purchased property, you can use your hard money loan for residential properties to cover his costs.
If you’re in the business of renovating and flipping commercial buildings, you can secure a hard money loan quickly and easily. Commercial hard money loans are a great way to finance your next fix-and-flip project. These are some of the types of property you can invest in:
- Industrial warehouses
- Manufacturing plants
- Distribution centers
- Inline retail
- Strip centers
- Regional Malls
- Hospitality locations (restaurants etc.)
- Medical offices
- Business offices
- Multi-family units
- Apartment buildings
- Planned communities
Fix-and-flip funding for commercial and residential properties is extremely easy to obtain, as long as the property you own or you’re interested in is lucrative enough for a hard money lender.
How to Get a Fix-and-Flip Loan
Applying for and securing house flipping loans in Texas is extremely easy—especially when you go through Source Capital. You can quickly and easily apply online for house flipping loans in Austin, Houston, El Paso, or any other town or city in the Lone Star State.
The application for a fix-and-flip loan only takes about 10 minutes to complete, and you will know if you qualify within 24 hours. If you have any questions regarding the nature of the application or how to qualify, you can call one of Source Capital’s qualified experts and they will be happy to walk you through the process.
If you’re concerned about whether or not you’re qualified for a fix-and-flip loan, Source Capital is happy to walk you through the process and finance your next real estate endeavor. You can get a fix-and-flip hard money loan even if you’re a foreign national, self-employed, or you have low income, low credit, a history of bankruptcy, or previous foreclosure.
Because Source Capital is an asset-based lender, you won’t have to worry about having your loan turned down because of financial circumstances or poor credit. Best of all, the application process is completely free. You won’t have to waste time and money waiting around for a traditional bank loan when you come to Source Capital for a fix-and-flip hard money loan.
Why Choose Source Capital for Your Fix-and-Flip Loan
Source Capital is your ideal source of funding for fix-and-flip projects in the state of Texas. We have hard money lenders located in Dallas, Austin, Fort Worth, Houston, and San Antonio. Source Capital has been helping businesses and entrepreneurs bring their business dreams to fruition for years.
It’s no wonder Source Capital has an “A+” score with the Better Business Bureau and a 5-star rating on Yelp and Google. Don’t just take our word for it, our client reviews speak volumes about our dedication to customer assistance and satisfaction. We’ve loaned over $250,000,000 to people and businesses just like you.
Our qualified professionals are more than capable of advising you about your plans to fix-and-flip a home, condominium, office building, or any other piece of real estate you might be interested in. When you succeed, we succeed. Our relationship won’t come to screeching halt after we’ve transferred you the funds. Whenever you have questions about anything regarding your loan or property, don’t hesitate to contact us.
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