3 Ways to Take Advantage of Investment Property Loans
With the current real estate market sporting steady profits, thousands of people jump on the investment bandwagon. You can earn phenomenal returns on your investment by fixing and flipping homes. Though it’s not easy work, it’s extremely rewarding. However, what many new investors don’t realize is there’s more than one way to flip a profit in the real estate industry.
The Investor's Edge is here to show you three ways to take advantage of investment property loans. This way, you can determine which loan is best for you. As a result, you will open the door to financial freedom more quickly and easily.
1. Give Wholesaling a Try
This option is phenomenal if you’re just starting out with real estate investments. The difference between wholesaling and retail fix-and-flips lies in wholesaling covering only half of the equation. In a wholesale deal, you find a property and get it under contract. Then, you sell the deal to an experienced flipper who will rehab and resale the property on their own.
Pros to a Wholesale Deal:
- You don’t have to worry about planning and executing a rehab.
- There’s no need to fret about selling the house in a certain amount of time.
- You earn your profit in a few weeks rather than a few months.
- There’s no risk involved.
Cons to a Wholesale Deal:
- You don’t make as much money as you would with a retail fix-and-flip deal. Usually wholesale deals earn an average profit of $10k, whereas fix-and-flips can earn an average of $30k per deal.
2. Dive into Fix-And-Flips
Retail fix-and-flip deals are a fantastic way to make a large amount of money in just a few months. With one profitable deal, you can get out of debt, repair your credit and save for the future! For example, if you find yourself $10k in credit card debt and you successfully execute a fix-and-flip deal for a profit of $50k, boom! Your debt is paid off, your credit score skyrockets, and you have extra money to put into a savings plan. You also have the option of using a portion of the profit to flip another home!
Pros to Fix-And-Flips:
- You can earn a great deal of money in 3 months or less. Most deals earn an average profit of $30k or more!
- You learn a ton about the fix-and-flip process and quickly grasp what it takes to earn large ROIs.
- Being creatively and strategically involved in the restoration of a home and its quick resale.
- You help improve communities by rehabbing poorer homes in neighborhoods and bringing them up to a higher standard.
Cons to Fix-And-Flips:
- It’s a very time-consuming and involved process. You definitely need to set apart significant time to devote to the successful execution of a fix-and-flip.
- Fix-and-flips involve more risk, but that risk can be mitigated with the help of your hard money lender.
3. Connect with a Business Partner
If you are just starting out with fix-and-flip investments and have poor credit, taking on a business partner is a very wise investment. A business partner can provide any essential qualifications you lack. For example, if they have capital for the investment and an excellent credit score, they can snag you loan benefits such as lower interest rates and points. Likewise, if they do not have the time to go find and rehab properties, but you do, it could be a match made in investment heaven.
Pros to Having a Business Partner:
- You will qualify for a loan no matter what.
- You can receive fringe benefits for having a partner with good credit, such as lower interest rates, lower points and higher loan amounts for which you can qualify.
- Partnering with a seasoned flipper can help you learn twice as much about the process so you can feel more prepared to execute a fix-and-flip on your own later.
Cons to Having a Business Partner:
- You won’t get to pocket the entire profit when you sell the property. When you work with a business partner, you divide the investment profit in an even split.
- You need to make sure your business partner is someone trustworthy and reliable. You definitely don’t want to get involved in a fix-and-flip deal with someone who might bail on you or not provide important information quickly.
Now that you know the best ways to take advantage of investment property loans, you can start on the road to financial freedom right away! The Investor's Edge is here to help you put your best foot forward with real estate investment opportunities. You can start off slowly or quickly, with little capital or a ton, with good or bad credit. The Investor's Edge helps hundreds of people become their own bosses and get out of debt quickly with these incredible financial opportunities. These opportunities are out there now, waiting for you!
Find out how you can make money flipping properties with us by attending the next webinar.