Making Your MillionsAndrew Carnegie once said that 99 percent of all millionaires made their fortunes through real estate. You hear stories about people making millions buying houses for cash, fixing them up and then reselling them, but how do they do it? No successful real estate entrepreneur lives in a vacuum. Whether they are new to the idea of flipping or veterans in the field they all have one thing in common – they know the importance of partnering up with businesses and investors willing to bankroll their talent. Finding credit resources is an essential part of success in the field of real estate.
The Role of a LenderLenders do more than provide a credit line, though. They are part of a network of professionals that want to see you do well which each deal; because when you make money, so do they. Companies like Aztec Financial have the experience to guide you and help you make smart choices that improve your chances of turning a profit. That connection to a solid financial company opens doors to REO selling agents, as well. You develop a reputation as a serious investor and gain access to more profitable listings with each successful deal.
The Power of ExperienceReal estate investment is not a get rich quick scheme, according to expert flipper and author Eric Tyson. An established lender has the experience to go the distance and recognize that hard work is part of the formula. What this means for the real estate entrepreneur looking to get into flipping is you need a lender who has been in business for decades because they offer a solid financial foundation – one that will be there with funds when the time comes to buy. You want a lender that has been specializing in the fix and flip niche and has done thousands of transactions over the years. You also want to deal with a lender who is flexible enough to custom make a loan program specific to your business model. Most of all you don’t want a fix and flip lender that thinks they are a bank, requesting verifications, bank statements etc. This will only serve to slow down the process. What you need is a no red tape lender that is nimble and can move quickly on your behalf. You want a lender that gets it, and understands that the underwriting is primarily based on the upside of the property you are buying! House flipping is a balancing game that comes with risks, too. It takes money to make money whether you are the buyer or the financier. Look for a financial partner with a ton of experience in the industry – one who understands what you need and is willing to work with you.
A Flexible and Rewarding Loan ProgramUltimately, it is up to you to find the best deal out there, but what else should you look for in a lender?
- No upfront appraisal fee is a good place to start. Without that upfront charge, you are free to discuss any potential deal with your financial partner and get feedback. Take advantage of their years of experience to find the most profitable properties.
- Flexibility is another key asset to watch for because not all deals are created equal. You want a lender who will customize a plan for you based on your experience and track record.
- A quick and easy application process without all the red tape that goes into most loan scenarios. If you have to wait for more than 24 hours for your lender to make decisions or provide an approval, you lose out on deals, because timing is everything in real estate investing.