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Fix and Flip Loans In Colorado
Our fix and flip loan program in Colorado is for real estate investors to purchase and rehab a distressed property; this is also known as a fix and flip loan. We not only offer the loan to purchase the property but we also offer the construction loan to help you rehab the property with little money down.
Finding short-term investments can be difficult through traditional financing. Hard money loans are structured perfectly for real estate investors interested in renovating old or worn down homes and putting them on the market at a higher value.
What Does Fix and Flip Mean?
Fix and flip is a common real estate term that describes the process of buying an old or unkempt piece of real estate, fixing it up with modern amenities, and flipping it back on the market to sell at a higher price. This investment is not only a quicker turnaround for the homeowner doing the fix and flip, but it helps keep the neighborhoods and communities in great condition. These investment properties are typically glanced over because they do not meet current buyer standards. Therefore, when it is flipped, it becomes a hot commodity on the market.
Loan To Purchase Property
A typical short term renovation loan covers the amount to purchase the property and to do construction. It’s important to start with purchasing non-owner occupied property because we do not want to be in the business of evicting people.
A hard money loan offers investors enough capital to purchase the property outright so that they can immediately begin working on renovations.
Loan To Do Construction
A traditional loan is usually enough to purchase the property outright, but it doesn’t cover a large enough amount to front the cost of the construction required to fully flip a home. Some buyers pursue the traditional method, live in the house while they fix it up over time, and then flip it and buy a new investment property to start over again.
Instead of this tedious process, short term renovation loans include an amount to help cover the initial costs of construction. This way, there doesn’t have to be a lot of time spent working on the house and the investor can make money on the property quickly. Everyone wins when the investor can fix and flip a house in a matter of months.
Typical Terms Of A Short Term Loan
In general, short term loans must typically be paid back within one year of starting the contract. However, this can usually be negotiated depending on the size of the investment.
The TABS Renovation Loan Process
First, it is important to note that TABS is legally licensed to loan money in Colorado only. We operate mostly in the Denver Metro area but investors from around the state can work with us too.
Interested investors start by completing the initial loan review where you tell us about your project.
We will review your project and get back to you as soon as possible. This initial application is a no-obligation, no-hassle form that helps us get to know you and your project.
If moving forward with a loan is agreeably mutual between both parties, the interested investor will be asked to submit a full loan application along with a non-refundable $100 application fee. We will get back to you within 24 hours of receiving the full application.
Upon passing the full application review, the interested investor will need to provide specific details about the project so that TABS can provide accurate funding documents. Assuming there is a clean title and no hiccups, the closing documents can be signed and the interested investor takes the deed of the property!
Short Term Fix And Flip Loans Are A Few Clicks Away
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