Purchasing rundown or neglected homes in order to fix and sell, can be a great way to build wealth…when it is done right. If, on the other hand, you attempt to flip a home haphazardly, you could wind up in financial turmoil. This is why it is critically important to do the necessary research, secure the proper funding, and take proactive steps to increase your chances of success with a fix and flip project.
What To Look For
Selecting the right property to purchase and flip is arguably one of the most important decisions you will make in this type of real estate venture. Hence, it is important to understand that just because a particular home or piece of property is inexpensive does not automatically mean it is right for a flip project. For example, if you purchase a home in an undesirable location or a home has significant structural damage or degradation, you could wind up putting a ton of money and sweat equity into a home, only to see it sit on the market for months on end.
To avoid this type of pitfall, make sure to look for properties with the following characteristics:
- Structurally sound
- Close proximity to a good school district
- Close proximity to restaurants, shopping centers, and other amenities
Develop a Detailed Plan of Action
When initiating a fix and flip project in Los Angeles, it is extremely important to develop a detailed plan of action to address, step-by-step, what needs to be accomplished to get the house back on the market. Once developed, it enables one to properly formulate a budget for the project as well as determine a realistic selling price for the renovated home.
Secure the Necessary Financing
One of the most challenging aspects of a fix and flip project is ensuring you have sufficient funds to (i) purchase the property, (ii) renovate the property, (iii) list the renovated property for sale, (iv) cover the required closing costs and other expenses associated with selling a home. Hence, it is so important to work with a reputable hard money lender in Los Angeles. Hard money lenders are typically more flexible than traditional banks when it comes to approving financing, from which you also have a better chance of getting the funds you need sooner when you work with a respected hard money lender in Los Angeles.
Need a Hard Money Loan in Los Angeles? Contact the Highly Reputable PB Financial Group Today
PB Financial Group is a premier direct hard money, private money and bridge lender, who has been providing quick funding since 2006 and have funded over 2700 hard money/private money loans. Our objective is to work to satisfy your financing needs on important real estate projects throughout California in an efficient and effective manner. To schedule a consultation or for further information please contact PB Financial Group at 877.700.3703 or visit www.CalHardMoney.com to learn more.
PB Financial NMLS #357614/DRE #01522495
