First Time FlipperInvestor Loan
First Time Flipper Program
If you’re just getting started in the real estate industry as an investor with a fix and flip property, you’re going to need funding. Many banks will turn you down if you don’t have experience in real estate investment, and you probably don’t have the cash on hand. The First time Flipper Program at BN Loans is designed specifically with you in mind. We offer loans for first time investors to help them begin their path to success.
With the First-Time Flipper Program, you get up to 80 percent of the funds for purchase and rehabbing. All you need are some liquid assets to use for the other 20 percent and a 600-credit score. The loan is set up for 9 to 12 months with a liquid down payment and holding cost.
Flippers must focus on making money with their investment. They need to know the market and how to spot a good deal. The first step is to find out how much of your own cash you have to work with – this can include money you borrow from family and friends. Once you know what you have on hand, you can begin your search for houses in that price range. For instance, if you have $10,000 in cash, you could borrow another $40,000, which means you could afford to buy a house for $50,000.
Think about the cost of renovations. For your first property, you may want to stick with houses that need only cosmetic work. While the profits are lower, you won’t be as likely to run into problems that can quickly reduce or eliminate your potential for profit. An ideal property for a first-time flipper is one that needs a kitchen or bath update but the bones of the structure are good.
Get Approved for Financing First
With the First Time Flipper Program, you can get approved for financing before you start searching for properties. You’ll know how much money you have to work with. When you find a property that meets your goals, your offer will be stronger because it’s backed by approved financing.
Get to know contractors who can quickly give you an estimate before your purchase is complete or even before you put in an offer in some situations. When you have people you can trust, they can let you know which properties are better and which ones are more likely to come with hidden problems.
Know the Margin
The key for a real estate investor to make a profit in the fix and flip market is to know how much margin they have. The margin is the amount between the price you paid for the property along with the costs of renovations and the price you can sell it for. Look for homes with a bigger margin, which will increase your profitability when you sell.
No matter how much you read and learn about buying investment properties, renovating them and selling homes, you need real-world experience. BN Loans gives it to you with our First Time Flipper Program to help you get the financing you need to be successful as a real estate investor.