Here is How to Fund Your Next Fix and Flip

Many real estate investors look for sources of funding to help with their investing ventures. Fortunately, there are many avenues that investors can take advantage of when it comes to funding. Four funding sources may interest many investors in search of funding for their next real fix and flip real estate venture. 

Private Investors/Hard Money

A private investor, or investors, wealthy business owners, or family members, may want to invest in your real estate venture. This type of funding falls under the category of hard money investing or private lending. This type of investing may provide more flexibility in how an investment venture is navigated and handled since your lenders are private. These types of investment opportunities are often accompanied by a requirement for a personal guarantee. 

Credit Cards

Credit cards are a flexible form of financing in that they allow investors to utilize cash advances and balance transfers, as well as purchase supplies. This may be an option that you can use to fund your fix and flip.

Personal Loan/Line of Credit

If you have good credit or at least fair credit, you may be able to take out a personal loan to finance your fix and flip. You benefit from a set payment schedule and fixed interest rates if you qualify. Beware, however. A personal loan has a direct impact on your credit score which can in turn negatively impact other financing opportunities if you default or mishandle your loan. 

Mortgage Financing

You may want to consider a mortgage as a possible funding solution for your fix and flip. There are two options for mortgage financing that many investors use that are beneficial to them. The first is a cash-out refi, which allows you to refinance a property for more than the current amount of the existing mortgage. The second option allows investors to use a home equity loan or line of credit like a second mortgage to get funds for your fix and flip. Both options allow you to utilize the funds as you see fit to meet the needs of your fix and flip. 

Our team at Gipson Commercial Solutions is committed to helping real estate investors find the funding they need for their real estate ventures. Give us a call if you have questions and could benefit from a consultation for your fix and flip.