Fix and Flip Loans

Fix and Flip Loans & Financing in Orlando, FL

Bluestar Mortgage, based in Orlando, is a trusted leader in Fix and Flip Loans. Call us at 321-400-5545 to speak with a Fix and Flip loan expert who can help you determine if this is the right financing option for you.

What are Fix and Flip Loans?

Fix and flip loans are short-term real estate loans designed to help investors purchase, renovate, and quickly resell residential properties for profit, typically within 12 to 18 months. These loans are popular for real estate investors looking to restore or refurbish properties, often obtained through hard money lenders for their fast approval and flexible terms. They are ideal for properties purchased at foreclosure auctions, public sales, or distressed sales that require significant rehabilitation.

Pros and Cons of Fix and Flip Financing

Pros of Fix and Flip Loans:

Fast Funding: Hard money fix and flip loans can provide financing within a week, which is crucial for investors competing in fast-moving real estate markets.
Flexible Terms: Private investors can offer more flexible terms compared to traditional banks, allowing for customized financing solutions.
Lower Risk: These loans are typically secured by the property itself, reducing personal risk.
Diversified Portfolio: Investors can expand their real estate portfolios quickly, capitalizing on market opportunities.
Property as Security: The property acts as collateral, providing security to the lender and reducing personal asset exposure.
Short Loan Terms: Most fix and flip loans have terms of 12 to 18 months, allowing for quicker returns on investment.

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Cons of Fix and Flip Loans:

Higher Interest Rates: These loans often come with higher interest rates due to their short-term nature and higher risk.
Market Risk: If the property takes longer to sell, carrying costs can significantly impact profitability.
Strict Repayment Terms: Short loan terms mean borrowers must flip the property quickly to avoid high interest costs.
High Upfront Costs: Larger down payments and renovation costs can require significant initial capital.

Types of Fix and Flip Financing Options

Hard Money Loans: Offered by private investment entities with flexible terms and fast approval.
Crowdfunding: Platforms that pool funds from multiple investors, often with less flexibility than private lenders.
Individual Private Lenders: Direct loans from private investors with potentially customized terms.
Home Equity Loans (HEL) and Home Equity Lines of Credit (HELOC): These traditional options provide funding by leveraging the equity in an existing property.
Cash-Out Refinancing: Refinancing your primary residence to access capital for property flips.
Acquisition Lines of Credit: Similar to HELOCs but often require higher personal guarantees, making them less suitable for new flippers.

Connect with a Bluestar Mortgage Fix and Flip Loan Expert

If you’re ready to explore fix and flip financing, call Bluestar Mortgage at 321-400-5545 to speak with a Fix and Flip loan expert who can guide you through the entire process, from application to final sale.

Request A Free Consultation