What’s the Best Way to Finance a House Flip?

What’s the Best Way to Finance a House Flip?

Flipping houses isn’t always as glamorous as it looks on TV. But it can be a great way to bring in a steady stream of investment income. To get started, you’ll need some cash to finance your renovation project. Luckily, there’s more than one way to get the money you need to flip a house. Check out the pros and cons of the different financing options that house flippers have.

Option #1: Traditional Bank Financing

The first place you might look for a loan is your local bank. Getting a fix and flip loan from a bank is going to be just like getting any other kind of mortgage loan. You’ll decide how long you want the loan term to be, put up the appropriate down payment and the bank hands over the cash.

While that sounds simple, getting a loan from the bank for a house flip isn’t always a piece of cake. You’ll need good credit to qualify for a loan. And the bank may be hesitant to give you any money if you don’t have a track record of successfully flipping houses.

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