July 28, 2020
When the COVID-19 pandemic first reared its head in March, company employees abandoned their offices, stores and restaurants shuttered their doors, and many fix-and-flippers walked away from deals. Several months later, the world is still filled with uncertainty. However, one thing we know for certain is that it’s a great time to get back into the fix-and-flip game.
Open the Door to Opportunity
At the beginning of the COVID-19 pandemic, many people lost their jobs. Some still find themselves unemployed. Relief was made available to keep many in their homes, but there is still a vast increase in foreclosures.
For fix-and-flippers, this presents an opportunity to invest in homes that may be abandoned or empty at a discount. If you sold your flips at the beginning of the pandemic, invest extra cash and time in another property.
Ready, Set, Go! Starting Your Next Fix-and-Flip
“Where there’s adversity, there is always opportunity. Pre-pandemic debt will become distressed and those who have the means to acquire it will be able to capitalize on it,” said Will Dyer, Chief Investment Officer at Bay Mountain Capital.
When the COVID-19 crisis began, many investors sold their current fix-and-flip projects before property prices started decreasing. Now, according to many lenders like Dyer, the time has come to invest in projects once again.
As a flipper, what should your next steps be?
A Post-Pandemic Buyer’s Shopping List
The pandemic is shifting what buyers find desirable in their homes. Getting ahead on lifestyle changes as a result of the pandemic is pivotal, according to Dane Pedersen. He states “A lot of success will be found by fulfilling demand created by new living and working conditions, and by the timely reaction to the continuing cultural shift.” Pedersen is the Commercial Underwriting Analyst at Bay Mountain Capital.
Take these into consideration when scouting your next flip:
- As the focus on social distancing increases, more people may move to suburban areas for more space.
- Organizations are loosening their work from home policies or going fully remote. This means more buyers will be seeking homes with home offices.
- People are reducing their habits of eating out at restaurants or seeking public entertainment. Look for properties with space for at-home entertainment such as game rooms, outdoor dining, and swimming pools.
As you scout out potential properties, keep our hard money loan calculator pulled up on your phone. This way, you can plug in your information and see what you can expect to qualify for with Bay Mountain Capital.
Bay Mountain Capital + You = A Dynamic Duo
Times are changing, but Bay Mountain Capital remains the same partner in your real estate success.
If you would like to learn more about how Bay Mountain Capital can help you with your residential fix and flip, reach out to us.
Do you already have a property in mind? Apply here for your fix and flip hard money loan here.
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.