A fix and flip loan is a special type of hard money lending. Hanson Capital will fund these loans, which are used to purchase, repair and ‘flip’ properties.
A fix & flip loan makes it easier to purchase, repair and flip a property fast. Fix and flip loans are most often used to to finance renovations and upgrades, purchase residential properties at foreclosure or auction, and to cover other expenses associated with the purchase of an investment property.
Hanson Capital is a private money lender offering short-term fix & flip loans to real estate investors for properties across the state of Arizona. Get a private money loan for an investment property purchase, refinance, cash out, rehab or new construction in the Arizona area.
There are many advantages of a hard money fix and flip loan for investment properties. Let’s discuss some of the most important ones:
We get a lot of questions about the difference between a fix & flip loan and a construction loan. Here are a few of the most common questions:
Great questions since investment properties that are flipped involve construction and renovation.
The good news is that fix and flip loan funds can be used for all of those needs.
Construction loans are generally used for building entirely new residential or commercial properties or for remodeling an existing building with all-new construction.
What many people don’t know is many of the processes are the same for construction loans and fix and flip loans. A hard money loan provides the benefits of flexibility and speed, both of which are needed in a fix and flip and construction loan scenario.
Find an experienced lender with a portfolio in your area. Asking other real estate investors in the area about who they recommend is a great place to start. A local hard money lender generally understands real estate trends in your area and can have contractors if you need help. It’s ideal to have a successful financial partner who has identified and financed successful flips in the past.
What about construction draws and holdbacks? Can funds be drawn incrementally to cover construction work or are funds not released until work is in progress or complete? Make sure you understand your hard money lender terms and how much you’ll need financially.
Don’t forget about carrying & marketing costs. Have all categories of cost mapped out to show your lender you’re ready to go.
What does your local lender look for? What does the schedule look like? At Hanson Capital, we recommend writing out the work to be done, when each stage will begin & end, and an estimate of what each portion will cost. What kind of insurance will you need? Do you need to establish an LLC? etc. Hard money loans vary from lender to lender, so make sure you know what your chosen lender requires.
Fix and flip or hard money lenders loan money for the purpose of renovating and selling a property. These lenders serve clients who specialize in fix and flip real estate.
Hard money lenders evaluate the potential of the property and decide on the amount to be loaned based off of their findings.
They gauge the borrower’s potential to successfully complete the property while taking into account the value of the property once it is sold.
Traditional banks rarely lend on fix and flip properties. Bank loans are based on credit of the borrower and are too slow for many real estate investors.
Hard Money Lenders fund faster and require less paperwork than a standard loan.
Hanson Capital has an extensive knowledge about real estate investing. We look forward to helping you or your clients.
More about us:
For many real estate investors, the search for a reliable fix-and-flip lender is a difficult one. Even lenders who claim that they can get you approved may take too long to get you the money you need to close a deal.
At Hanson Capital, our goal is to get you an answer in as little time as possible so you can take on your next project right away. We don’t want you to miss out on a great deal while waiting to hear back from a lender ever again.
Hanson Capital specializes in providing loans that include both the purchase and repair costs as part of one loan.
The following property types are eligible for our Fix and Flip loans:
At Hanson Capital our loan minimum is $50K and can go up to $5M in-house financing. Any projects larger are looked at on a case by case basis. Our average loan size is $400K.
Hanson Capital can lend to individuals or LLCs. We prefer to individuals purchase as an entity. Our Fix and Flip loans are available to the following borrowers:
Hanson Capital currently lends in Arizona, California, Colorado, and Texas.
Hanson Capital looks at investments differently than a bank and rely mostly on your real estate experience and other common-sense factors when making decisions.
We ask for the following documents for Fix and Flip Loans.
Hanson Capital offers competitive Fix and Flip loan rates. All rates are based on the individual property and borrower. Contact us for more details & to schedule a consultation.
At Hanson Capital, we work with real estate investors in the following cities: