Challenges to fix and flip real estate professionals

Fix and Flip - Hard Money Best practices

Focus on the area you want to buy, and become an expert on it.  Doing it that way increases your chances to know which streets are better than some, why the house in the corner is better than another place down the street.  When you apply for a hard money loan and want to get a fixed rate, you want to increase the chances and the best way to do that is credibility when applying.  When purchasing a fix and flip, you will be asked about the experience and track record.  Knowing your area is a big part of that.

Don't sign a contract with a lender or broker - a lot of brokers will ask you to sign an exclusive contract or lender will ask you to sign an NDA - to prevent you from talking to competition.  This is a universally a bad idea, you want to make sure you have the best rates, fees, and terms.  The only way to achieve that is by shopping around.  Your fix and flip financing will make or break based on the financing just as much as your renovation finishes.

Work with a local hard money lender - if you work with someone close to you they are more likely to know the property and understand why you are likely to succeed.  Statistics show people who are closer together are more likely to work together and it increases your chance at success.  If you are a local Georgia fix and flipper, find a local Georgia hard money lender.

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