3 Mortgage Programs to Help You Flip More Homes
by Fortune Builders
Flipping houses can be down with no money down and without using
financing, especially if you have cash or a network of private money
lenders but you will also find the following 3 mortgage programs
excellent additions to your arsenal. After all, the more good leverage
you can harness and the easier you can make it for others to buy your
homes the more real estate investing deals you can turn over.
1. Transactional Funding
Transactional funding is perhaps the most valuable asset that real
estate investing pros have on their side today. Yet it is still
overlooked or under used by many investors. Transactional funding can be
used for funding quick flips, often providing 100% financing, plus
closing costs, without credit checks or even appraisals. Of course the
one catch that comes with transactional funding is that you have to have
a ready and able buyer. If you don’t have end buyers lined up by the
dozen yet then you can also simply assign your deals to other real
estate investing companies and recommend that they use transactional
funding. You may even find your transactional lending sources will pay
you for the referrals so you can double dip without taking on any risk.
2. Hard Money Loans
We all know that hard money loans aren’t as sweet as they once were
but they are still great tools for flipping houses. Some of these
lenders will actually loan you rehab funds too, even if they do put them
in escrow and refund you as work is completed. However, hard money
loans can also be offered to those purchasing your homes too. There are
many buyers out there with bruised but who have cash to put down as down
payments, even those who are exiting their homes as short sales now
often receive up to $20,000 for relocating and finding another home.
3. FHA 203 (k) Loans
Real estate investing pros often instantly shy away from any type of
conventional financing however FHA’s 203 (k) loan program is perfect for
investors. It offers purchase and rehab funding in one loan so that you
can purchase distressed properties and fix them up without having to
put in additional cash of your own. This can be fine if you are using a
buy and hold real estate investing strategy. However, but if you are
focused on flipping you can also promote these loans to your buyers and
let them do all the repair work.
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