You have entered the real estate market and are interested in working with homes that you will buy cheap, renovate quickly, and put back up to sell. This concept, called fix and flip, can have a large profit when completed. However, it can be a costly practice to get into and requires financing to begin. Here is the type of loan you will need for your rehab home. 

How To Get Cash To Get Started

While most small real estate businesses would apply for a mortgage loan to purchase a property, you should look into fix and flip financing from an investor or someone who is interested in developing that area. These individuals realize that the amount you want to borrow is more than the property you own is worth. They recognize why you purchased the structure and what you plan to do with it. Research organizations that offer this type of assistance or ask someone that you know that works with rehab property. They can point you in the direction you should go to get the money you need to work with. 

What You Need To Do To Get This Financing

When you apply for this type of loan, you will need to provide the purchase price of the property as well as the estimate of what it will take to make the repairs. You should also provide the amount you want to sell the refurbished house for when you are finished. If you are approved to receive assistance, it will come with an increased interest rate and short terms. The lender will want to know that you plan to stay on schedule and get your rehab property on the market as soon as possible so that they can receive their cash back. 

Another Reason To Use A Fix and Flip Loan

If you know of a house you want to renovate but lack the cash to do so, this type of financing can get it for you before someone else snatches it up. This is the ideal loan to get in this situation. Banks can take weeks to months to finalize mortgage papers and release the money to you to make the purchase. You can borrow from a fix and flip lender and have the funds that you need for your rehab property far quicker. This also increases the chances of you obtaining the home since the buyer will want to sell to someone ready to pay within days over another individual still struggling to get help with their offer.