If you’re thinking about applying for a fix and flip loan, there are some important questions you will need to answer, so that you choose the right type of investment opportunity. Here are a few things you should ask yourself so that you don’t make a misstep and invest in the wrong deal.
How Does the Property Compared to Other Deals?
One of the first things you should do with any fix and flip opportunity, is compare it to other properties in the area. Then you should think about what would have to be done to this property in order to bring it up to speed with those comparable investments. If you’ll still be able to make a profit after making these improvements, then this could be a legitimate opportunity.
What Information Can Be Gained from Recently Sold Properties in the Area?
Check on the sale prices of comparable properties in your target area, so that you can get an idea of what buyers are really looking for. Make sure to evaluate the square footage, the amenities and features, and the age of the property. All this information will be helpful in determining whether or not your target property would be appealing to prospective buyers.
What Advantages Does Your Target Property Offer to Potential Buyers?
You should always visit any property you’re targeting for an investment and for which you’d need a fix and flip loan. Of course you can learn a great deal about a property online, but only an in-person visit will give you definitive information about the actual appeal of a given property, from the standpoint of what a potential buyer will see. If you think the property has real advantages to offer to a prospective buyer, this could be a good investment for you.
Interested in a Fix and Flip Loan?
If you’re active in the real estate business, you may want to become involved with fix and flip loans, in which properties are rapidly acquired and sold off, so as to quickly generate profits. When you need funding for such a venture, contact us at Pendleton Commercial Financing.