If you are thinking about investing in a fixer-upper — either to fix and flip or to rent and hold — then you may have put a lot of thought into the type of home that you want and the steps that you will take to make your repairs.
One thing that you might not have thought much about, however, is how you are going to pay for everything. What you might not realize is that fast funding through a private money lender can be your best option. These are a few reasons why fast funding is so important when buying a fixer-upper.
Traditional Financing is Difficult — if Not Impossible
Most mortgage lenders want to have collateral that will be worth something in the event that you default on your loan. Although you certainly probably have no intentions of defaulting on your loan, your lender will still want collateral that it can easily sell in case you do. In the case of most fixer-uppers, they aren’t in good enough condition to satisfy your average lender.
Plus, even if you do get qualified for a loan, you will probably have a tough time borrowing extra cash from your lender to cover home repairs.
Luckily, a private money lender will still loan you the money that you need to purchase the home and fix it up.
Fixer-Uppers Sell Fast
Lots of people look for fixer-uppers that they can fix up and live in or sell for a profit. Many landlords specifically look for older homes that need repair so that they can turn them into rentals. This means that a good deal on a good fixer-upper might not last for long.
If you have to search high and low for financing, you might miss out on a good deal on a home that you really want. This is especially true if you go with a traditional lender, which might cause you to go through a long and tedious process to get approved.
With fast funding through a private money lender like Center Street Lending, however, you can get your money faster. This means that you can spring on a great deal on a great home, and you won’t have to worry about missing out on the perfect fixer-upper due to financing issues.
The Repairs Might Cost More Than You Think
Even though you might think that repairing your fixer-upper will be cheap, it can be more expensive than you might think. Although you can certainly save money on your project by doing some of the work yourself and finding sources for affordable materials, you may need some funding to help you get your project started.
Getting started right away can help you turn your investment more quickly. Plus, repairing certain issues — such as roof or window problems — can help prevent further damage from occurring, so time is of the essence.
Luckily, Center Street Lending can help you pay for your project. Then, you can get your home into tip-top shape, no matter if you are planning on flipping it or renting it, and you don’t have to worry about running out of cash or having to do things the cheap way in order to stay within your budget. This can help you ensure that your fixer-upper turns out as a wonderful home.
As you can see, fast funding is incredibly important if you are looking to invest in a fixer-upper. If you would like to find out more about fast funding through a private money lender, or if you have found a fixer-upper and are ready to make a move, contact us at Center Street Lending today.
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