Distressed or older properties in need of renovation are frequently listed for a much lower price than others in the same neighborhood of comparable size. The pricing is extremely attractive to investors who have the skills and expertise to restore a home and resell it for a profit, but while these homes boast a lot of potential, they’re also much more difficult (if not impossible) to finance through conventional loan types.
In such instances, a fix and flip loan can give you the option to present a strong, all-cash, contingency-free offer that will stand out amidst the sea of offers bound to be coming in on a fixer upper that is priced to sell fast.
What Is a Fix and Flip Loan?
A fix and flip loan is a unique type of financing that allows for the quick cash purchase of a single-family home or condo that may not meet the parameters or timeline of conventional home loans due to its age or condition.
This type of loan also gives buyers and investors options where they may not otherwise have them, whether they don’t have the full cash amount needed to invest in a property they want to renovate or need to keep funds liquid for a fast, profitable fix and flip renovation.
With conventional home loans, there’s often a long process involved in changing ownership of a property. There are usually contingencies (such as physical or loan contingencies) that are placed as conditions on the sale, and it can take anywhere from 30-45 days to fully lock in financing and close once an agreed price and plan is in place.
However, with a fix and flip loan, you can have funds available in as little as 5 days and can make a cash offer to the seller that is free of contingencies such as inspections, appraisals, and loan contingencies. An all-cash offer with no contingencies and a quick close can help bump your offer to the top of the pile and ensure that you’re able to secure the property you want quickly.
Who Should Seek Out a Fix and Flip Loan?
Fix and flip loans are ideal for investors who need reliable, reactive capital to move quickly on purchasing distressed or older homes in need of renovation. Fix and flip loans can be funded and presented to a seller as cash very quickly, which allows investors to move quickly on great opportunities. There are a lot of investors out there scoping out the profit potential of fixer uppers, so speed and reliability of funds are key components of ensuring you present the best deal and get an offer accepted and closed quickly.
Fix and flip loans can also be used in cases where financing has fallen through due to contingencies or other factors that come along with purchasing a distressed property. A fix and flip loan can help you continue forward in your deal without losing time or momentum, and the amount can be flexible to help you stay competitive in what you want or need to offer to secure the deal.
The Advantages of Using First Bridge Lending for Fix and Flip Loans
Many lenders do not offer fix and flip loans, but First Bridge Lending understands the importance of reliable, reactive investor financing. We’re prepared to offer qualified investors and buyers the option to close quickly with a cash offer on fixer properties. We have extensive expertise in fix and flip loans and will do all the work to make sure industry regulations are met while helping you secure your investment property. We handle all the underwriting in house, can waive inspections and appraisals, and can get you funds for an all-cash offer in as little as 3 days.
First Bridge is local to California and understands just how the market is trending where you’re looking to buy. We can meet with you in person, attend property visits, and advise you on the specifics of the area where you’re looking to buy.
For more information on First Bridge Lending and our lending practices, please contact us directly by calling 949-373-5910 for our Newport Beach office and 415-366-1235 for our Petaluma office. We look forward to helping you with your fix and flip loan.