The strategy of “fix and flip real estate” has gained considerable attention from investors. It involves investing in distressed or outdated properties, renewing them with necessary repair work, and selling the renovated properties for a profit. Red Rock Capital specializes in financing this type of real estate investment strategy. Investors can obtain loans quickly to convert distressed properties into lucrative options for buyers or potential renters.
Red Rock Capital Offers Following Benefits To Fix And Flip Investors
1. Higher Loan Amounts
It is easier to get a high fix and flip loan amount for a property in need of renovation and updating. This investment strategy is often for a quick sale the ability to close timely is paramount. Because Red Rock Capital is privately funded, the loan is able to close quicker than a traditional lender. Also, the renovation enhances the market value of the property which provides additional security to our investment.
2. Speed And Flexibility
Speed and flexibility are the two crucial factors for fix and flip real estate loans. Red Rock Capital has faster loan processing to help realty investors. This quick turnaround time assures investors can take advantage of lucrative real estate opportunities as they arise. We have streamlined our loan process to reduce waiting time. Also, we have done away with unnecessary paperwork to streamline the loan closing. We are also more flexible than other lenders because our objective is to increase fix and flip investments held within our loan portfolio.
3. Funding For Renovations
A fix and flip loan is given for carrying out renovation work on a dated property. But the same thing can’t be said about traditional mortgage loans that are based upon the current as-is value of the property. Red Rock Capital gives loans for renovation so investors can renovate their properties and make a profit by selling renewed homes or refinance and rent out the property afterwards. It is for this reason that Red Rock Capital has become a one-stop shop for all your real estate investment needs.
4. Flexible Prepayment Penalties
Some of our most popular loans have no prepayment penalties and are attractive for fix and flip real estate loans. It is just one flexible aspect for Red Rock Capital clients. Real estate investors can easily sell their renovated properties before the loan term and get out of the loan without paying any prepayment penalty. But traditional mortgages have different rules. They often carry prepayment penalties to discourage investors from settling their loans before a certain period of time has passed.
5. Interest-Only Payments
Interest-only payments are a great way to repay a fix and flip loan. It will keep more cash in your pocket as you will make minimum payments each month. Since there is equity in the property once repair are completed, you can wait to repay the principal amount upon the loan being paid off. A traditional mortgage loan generally requires payment of both principal and interest. This interest only option allows investors to focus their attention on improving the property instead of making a higher monthly payment. Red Rock Capital understands this benefit to our borrowers and are glad to help maximize their cashflow while the property improvements are being made.