How to Fix and Flip Investment Property – Part 2

In this article we will continue where we left off from Part 1 of How to Fix and Flip Investment Property
7. Selling the Renovated Property
After successfully renovating the investment property, it’s time to sell it for a profit. Here are the key steps to ensure a successful sale:
8. Potential Challenges
Fix and flip investments can be highly profitable, but they also come with challenges. Being aware of these challenges can help you navigate the process more effectively:
Refinancing an Investment Property
Once you’ve successfully completed a fix and flip project and sold the property, you might be interested in refinancing to maximize your returns. Refinancing allows you to access the equity you’ve built in the property and free up capital for your next investment. Here’s how it works:
1. Assess Your Options: Research various lenders and loan options. Traditional lenders, banks, and credit unions offer mortgage refinancing for investment properties. Compare interest rates, terms, and fees.
2. Property Appraisal: Lenders will typically require an appraisal of the property to determine its current market value. This appraisal will influence the refinancing terms.
3. Equity Requirement: Most lenders require a minimum amount of equity in the property before you can refinance. This is typically around 20-30% of the property’s value.
4. Loan Terms: When refinancing, you can choose between fixed-rate and adjustable-rate mortgages. Consider which option aligns best with your investment goals.
5. Application and Approval: Apply for the refinancing loan and go through the approval process. Be prepared to provide financial documents and information about the property.
6. Use of Funds: Once approved, you can use the funds for various purposes, including starting a new fix and flip project, purchasing additional investment properties, or other real estate investments.
Where to Obtain a Refinance Loan on an Investment Property
To obtain a refinance loan for an investment property, you can explore the following options:
It’s important to carefully consider your financing options, compare rates and terms, and choose the one that aligns with your investment strategy.
In conclusion, fix and flip investments can be a rewarding venture when executed correctly. Research the market thoroughly, budget carefully, and be prepared for potential challenges. Once you’ve successfully sold a property, consider refinancing options to leverage your equity for future investments. Contact New City Financial as a vetted Fix and Flip Investment Property Lender. Explore their refinance options and loans, get started here.
I hope this comprehensive guide helps you understand the process of fixing and flipping investment properties and provides valuable information on refinancing. If you have any further questions or need additional information, feel free to ask.