Are you planning to do real estate? Have you envisioned yourself going through listed properties, doing repairs, and then selling them? It's called Fix and Flip - a technique where you purchase a property, renovate it, and then resell it for a profit. Listen to this episode as Real Estate and Mortgage expert Walter Monteiro shares the pros and cons of this practice.
Standout Quotes:
- "We get a lot of calls in today's market with regards to doing fix and flips. I, for one, I'm not a big fan of them personally because I am not exactly the handiest guy when it comes to doing any renovations." [Walter]
- "Many lenders, especially if they smell a fix and flip in the works, they're not too crazy about providing a mortgage on a flip property. Because let's face it, you're going to tackle this property, you're going to renovate it, you're probably going to get it, and that's going to put their security in danger." [Walter]
Key Takeaways:
- The most severe barrier people have when fixing, and flipping is raising funds necessary to purchase a home, resolve it, and then resell it.
- To begin your real estate journey, if you intend to conduct fixes and flips and have your ducks in a row, you may always use a line of credit secured by your property. You can use that money to acquire the subject property, repair it, and resell it.
- One issue you may run into along the route is that you will need to retain a mortgage on the flip home. And then you're going to have to pay off the mortgage—clearly, factor in all of your improvement charges.
- Suppose you're in a position to undertake a fix and flip; in that case, Walter can assist you with arranging a line of credit against your primary residence and arranging for you to obtain a mortgage on the flip property's subject property.
- As a licensed mortgage broker, Walter can assist you in obtaining private money for your fix and flips. They do this by securing the property with a mortgage, which would be the flip property. And then create what is known as a blanket covenant on the land on which you reside. In this manner, you may finance the flip property almost entirely. And then you can renovate using your funds.
Episode Timeline:
[00:02] What's the biggest challenge when doing Fix and Flip?
[00:50] What are the elements of Financing?
[01:35] Why do lenders dislike the idea of lending money for Fix and Flip projects?
[02:07] Securing Property through Mortgage
[03:11] What's an Interest Accruing Mortgage?
[03:49] Walter Monteiro's Contact Details
Learn more about Walter Monteiro and The Real Estate and Mortgage Show at:
Website: https://therealestateandmortgageshow.com/| http://www.waltermonteiro.com/
LinkedIn: https://www.linkedin.com/in/waltermonteiro/
Twitter: https://twitter.com/waltermonteiro
Telephone: 519-624-9222 | 519-240-0360
Email: walter@maximumresults.com
