Bryan R. Ziegenfuse Gives the Details on a Fix and Flip Loan and Who Can Benefit From It
Wondering what a “fix and flip loan” is and who should acquire one? Bryan Ziegenfuse, a managing partner of direct lender I Fund Philly, shared his advice on these loans. A fix and flip loan are used by short-term real estate investors to purchase and renovate a property before flipping it for a profit, according to Fit Small Business.
Fix and flip loans involve getting capital to acquire and repair a property, Bryan R. Ziegenfuse stated. With these loans, typically the property is purchased, renovated and sold again within one year. It is a great option for those who are purchasing a property in poor condition with the intention of selling it rather quickly, Bryan Ziegenfuse said.
According to Attom Data research, house flippers renovated more than 200,000 homes in 2017 with an average profit of 68,143 per property. House flipping is increasingly popular, Bryan Ziegenfuse said, which means people are looking for the best way to finance the purchase and remodel of the home.
In addition to purchasing the house, a fix and flip loan should cover the holding cost of the home, including insurance payments and HOA fees, materials and labor for renovation, and realtor and closing costs to sell the property after it has been renovated.
Before you attempt to obtain a fix and flip loan, ensure that you have a business plan for the flip that gives exact details and detailed estimations on the costs of the house flip. According to Fundera, many flippers do not borrow enough money from their lender and run out of funds before the home renovation is complete. Avoid this situation by creating a detailed outline of the repairs and how much they will cost without leaving anything out.
Bryan R. Ziegenfuse’s company, I Fund Philly, offers fix and flip loans. Usually, the property owner’s intent is to sell the property once repairs and rehabilitation have been completed, Bryan Ziegenfuse said. I Fund Philly prides itself on simplifying the experience of obtaining a loan, which can sometimes be a long and arduous task. With user-friendly online processing, transparent fees and competitive rates, reliable closing and delightful service, I Fund Philly stands out as an excellent company to help acquire a fix and flip loan.
Bryan R. Ziegenfuse joined I Fund Philly in 2018, following a 15-year career as an executive across the lending, capital markets, finance, and portfolio management disciplines. His years of experience mean he knows what is important to people securing a loan: speed, greater leverage, and reliability of funds.