Indianapolis Fix and Flip Loans
Indianapolis fix and flip loans, also known as commercial renovation loans, and hard money loans, are a type of financing for property investors. People can use these funds to purchase and rehabilitate residential and commercial properties alike. These include single family houses, multifamily units, apartment buildings, commercial spaces, and more.
Fix and flip loans are popular because they are ideal for real estate property investors who plan to buy properties, refurbish them, and then sell them. In some cases, investors obtain fix and flip loans to facilitate a quicker turnaround time.
At any rate, fix and flip loans are a great way to fund a remodeling project and then sell said property for a profit. So, let’s take a look at a fix and flip loans.
Indianapolis fix and flip loans or hard money loans are a fantastic alternative to traditional commercial loans. The latter process is very complex, takes an inordinate amount of time, and puts a lot more stress on the investor-borrower.
The reason fix and flip loans are so popular are due to the fact these simply work better in such situations. Instead of going to a traditional lender, like a bank, property investors can turn to fix and flip lenders for necessary financing.
You see, fix and flip loans or hard money loans, are funded by a group of private investors. Unlike banks, these investors assess risk in different ways.
These individuals are seeking returns on their investments and are more aggressive with their lending in order to make money. But that’s not all. Here are some of the key advantages of fix and flip loans or hard money loans:
- Flexible terms. Unlike traditional bank loans, fix and flip loans have more flexible terms. Since these are often short term situations, there’s more room to work with the structure and that’s a huge benefit to the borrower.
- Quicker funding. Another big advantage of hard money loans is the fact the investors supplying the financing are eager to earn a return on investment. Meaning, there’s little to no red tape involved and that results in a fix and flip investors to get ahold of funds faster.
- Higher approval rates. Of course, since there’s no bank involved, lending works differently. And, another benefit is a higher rate of approval. Hard money lenders do not require nearly as much to approve financing.
- No or small prepayment penalties. Generally, fix and flip loans come without or with tiny prepayment penalties.