How to Finance your next Fix & Flip property

Fix and Flip is a real estate business that involves buying low-priced properties that typically need repair and renovation, and selling them for a higher price than what you paid. Property flipping can be a profitable business, but it comes with major financial risk, especially for beginners.

Successful fix-and-flip method depends upon buying the right property and setting up an economical budget for the remodel project. Another key point to remember when planning a successful real estate business is evaluating the property and pricing it correctly so that you can get your money back in a timely manner.

If the property takes too long to turnover to the right buyer, it can cost a lot of money to the investors in one of three ways:

1. Carry on Interest: If the investor has a loan on the property. This is the monthly cost of money rendered for the project.

2. Missing out on other opportunities: This is the disadvantage of not being able to touch your money when you need it. There are times that a more profitable investment can come unexpectedly. For example, if you find a rushed selling, inexpensive property, the investor might miss out on a great opportunity to buy another investment property.