Purchasing a real estate property, repairing & selling it fast tends to be a money-making recipe. However, a crucial point of this recipe to success is access to capital. If one doesn’t have adequate funds but is wanting to get in the business of rehabbing property, a hard money lender who provides fix and flip loans in California could be an excellent financing alternative. These loans are configured in such a manner that allows an investor to quickly obtain the property and have access to a reserve of funds for construction & renovation costs.

There are innumerable benefits of fix and flip loans – and the demand for this source of financing is slowly rising in the real estate investment industry. Getting approved for a fix & flip loan is a much quicker process when compared to loans through the conventional banking system. Once the borrower has provided the requested documents, a private fix and flip lender can approve the loan inside a couple of days – sometimes even hours – whereas a conventional banking facility can take a month or even longer to finally approve a loan.

Properties in varying states of the condition can be eligible for a fix and flip loans. Whether the property is bank owned, a short sale, a foreclosure, or in a dilapidated state, a borrower can still find a hard money lender willing to fund the deal. Once again, a borrower may not have the option of funding these types of real estate opportunities with a bank. Banks are pretty risk averse & have strict rules in place as to what type of property they can accept as part of their loan portfolio.  This is especially true with regards to condition.

Properties that investors are buying to fix and flip often have condition issues.  Many times these condition issues would negate traditional bank financing.  This is the beauty of accessing hard money for fix and flip loans.  An investor can acquire a property that a traditional buyer may not qualify for due to condition.  Then, once the repairs have been made, the investor can sell it on the open market to retail buyers who are able to obtain traditional financing at that point.

“When you purchase a property with the intention to flip it, a dramatic portion of your budget will be spent on construction & renovation costs. A fix and flip lender in California will generally set up a loan reserve which will cover repair costs of the property in addition to interest. This can ease out a lot of stress & pressure for builders and developers since they don’t need to be worried about spending money out of pocket for repairs or payments” said a spokesperson for ACA Lending.

About the company:

All California Lending is California’s leading fix and flip lender who specializes in rehab lending programs so suit borrower’s needs.