December 10, 2019
With the New Year Comes New Year’s Resolutions
Begin this year with the resolution of taking charge of your real estate investment portfolio by investing in fix and flips. By breathing new life into distressed properties, you’re helping homeowners achieve their real estate dreams while profiting.
January is a great time of the year to kick off flipping houses. It’s generally a slow time of year in the real estate industry. As such, you can move faster in lining up real estate agents for purchases. Likewise, you’ll be able to land contractors to make any necessary repairs or upgrades more quickly.
As a result, your fix and flip might be market ready once the busy season starts in the spring. This is crucial as families look to line up new housing after the school year ends.
Get started on your new year’s resolutions with our guide to fix and flips:
How to Get Started with Fix and Flips
The biggest factor to a successful fix and flip is location, location, location. Even if you’re planning to work in a neighborhood you know, doing your own market research is vital.
Talk to people who live in the neighborhood. Network with other real estate investors active in the area. Where possible, attend local planning board meetings for insight on issues that have the ability to impact your investments. Is there a glut of available housing? Which way are home prices headed?
When you find a property that seems like a good fit, it’s time to get to work.
Having an experienced real estate agent can be a great help. Work up a list of what’s needed to rehab the house and explore the costs involved. Build your team of contractors and start gauging the time needed to rehab the property. Spring is a busy time for contractors, so don’t leave this to the last minute.
When to Reach Out to a Hard Money Lender
Once you’ve found the perfect property and assembled your team of professionals, it’s time to seek out funding. You’ll have to prepare the documents your lender needs to approve your financing application. Bay Mountain Capital will want to know more about the property you want to buy and what your anticipated budget is.
Supporting documents for fix-and-flip loans show you’ve done your market research and understand what kind of remodel best fits buyers’ needs, like spending time and money on an extra bathroom instead of redoing a backyard patio. Being able to effectively show you have a strategy for executing your fix-and-flip plan can improve your loan approval chances.
Look at Bay Mountain Capital as a partner in the process; a good lender will work with you every step of the way because we want to see your project succeed.
On Schedule: Completing your Fix and Flip on time and within Budget
Once you officially start work on your fix and flip, it’s really important to stick to your timeline.
If you’ve planned adequately, there will be a cushion of time and money built into your schedule and budget to accommodate unexpected delays and cost overruns. Make sure all of the small details are covered, from finding good contractors to managing construction and getting draw requests approved quickly.
When problems arise, you should communicate them to your lender right away. As a trusted partner in the fix-and-flip process, we have a vested interest in seeing the project completed on time and can support you throughout your first fix and flip journey.
Bay Mountain Capital has the real estate and lending experience to help real estate investors achieve their goals with fix-and-flip. Buying distressed properties, improving them, and selling them at a profit in a desirable neighborhood can deliver big money if conditions are right. The process works best when you partner with the right lender.
Contact Bay Mountain Capital today to learn more about how our fix-and-flip loan solutions can support you for a successful start to the new year.
About Bay Mountain Capital:
Bay Mountain Capital has been in business for more than a decade, closing approximately 2,000 loans. We specialize in financing all types of residential and commercial property investments throughout Texas and Georgia. Using common sense and value-added approach, we strive to incorporate these principles into our underwriting and closing processes.
As a direct lender, Bay Mountain Capital can close a loan within one day after receiving a complete file and clear title. The process generally takes two weeks for a residential loan but can be accelerated where circumstances require it.
We are primarily an asset-based lender, which means that qualification requirements are limited. Our rates and fees are among the lowest in the industry.