Fast Flipping: Wholesale & Hard Money
Real estate moves quickly. If you’re not ready to hop aboard, you might just miss the train.
As a property investor, you want to be first in line for the properties that match your investment strategies and bring you maximum profit potential.
Use a Real Estate Wholesaler to Find Properties Fast
To easily find investment properties, use a property wholesaler. A wholesaler searches negotiates and places contracts on homes that are good investment opportunities. They are experts in finding the best real estate deals and know the ins and outs of contracting distressed properties.
Here is an overview of the process for wholesale deals:
- The wholesaler searches and contracts properties that have investment potential, such as a fix and flip or buy and hold deals.
- The wholesaler makes an offer and hopefully puts the home under contract. This is usually a state-regulated contract, but some wholesalers do use simpler one-page contracts, but most do not recommend this.
- The wholesaler markets the properties specifically to investors.
- An investor with preapproved financing or cash signs an assignment contract and typically pays $2,500 – $5,000 or more in non-refundable earnest money directly to the wholesaler. This is only refundable if a clear title cannot be provided.
- All rights and responsibilities in the contract between the seller and the wholesaler are passed to the buyer.
- That usually includes the buyer paying all closing costs. Always review the contract to know what is included.
- At times, there may be costs you did not expect, such as agent fees if the wholesaler located the deal on the Multiple Listing Service.
Simply put, it’s convenient and can provide consistent deal flow. Many property investors work with wholesalers because it saves them the time and money involved in searching, negotiating, and contracting. They can instead focus on rehabs and doing more deals.
Move Quick with Loan Financing and Property Closing
When a wholesale deal becomes available, the last thing you want is to miss out on huge profits because you didn’t have financing approved to secure the deal.
Smart real estate investors turn to hard money lenders. Hard money loans are short-term, real estate-backed loans used to acquire investment properties. They are designed for investors looking to secure off-market wholesale deals with contracts wholesaler’s trust.
Realize Your Return Even Faster with a Hard Money Loan
With a hard money loan, you can avoid the speed bumps often faced with other lending options.
In fact, wholesalers will only sell to those with either a cash offer or a pre-approval from a reputable hard money or private lender. Getting preapproved for a hard money loan can help you avoid missing out on that wholesale deal of a lifetime.
Why Use Hard Money?
- Hard money lenders are more interested in the big picture regarding your creditworthiness and the quality of the deal. Therefore, they don’t need to go through your loan application and financial history with a fine-toothed comb. Once you have a relationship with a hard money lender, the process can move quickly and smoothly, giving you an edge on closing deals fast.
- Hard money loans are more flexible than traditional loans. Lenders evaluate each situation individually based on the investment opportunity. Depending on the situation, they may be able to make accommodations to fit what works for you. This is unlikely to happen with a traditional loan and a complex underwriting process.
- Fast Profit. Hard money loans are designed to be short-term loans. They get you cash fast, so you can jump on an investment opportunity before it is gone. Even with a higher interest rate than many traditional loans, a hard money loan can still help generate amazing profits.
- Most properties in poor condition will not qualify for conventional or traditional financing. The best opportunities come from the ugliest houses or the most distressed situations, so those loan products are usually not viable options on the best deals.
Hit the Fast Track to Opportunity
Don’t wait in line while the train passes you by. Get pre-approved for a hard money loan. A hard money loan is a perfect fit for investors who are ready to move, have a plan of action, and want to see their investment paying off fast.
Catalyst Funding is a hard money lender located in Houston, Texas, but we lend in all the major metros in Texas and many other smaller Texas towns. We offer all our long-term products across the country. As active real estate investors ourselves, we can provide guidance and expertise to help you avoid mistakes and maximize profits.
For more information on our hard money loans and a broad range of long-term products, contact Catalyst today.