How fast should you flip a house?ĭon’t kill yourself (or more accurately, flip yourself into an early grave) to rush your real estate flip. Getting a hard money loan is generally less of a hassle than a standard mortgage, and they’re especially popular with people flipping houses who prefer not to go through the hassle of taking out a 15- or 30-year mortgage on the property. This differs from a bank that uses money from its depositors.” “A lender could be an individual, a group of investors, or a licensed mortgage broker who uses his own funds. “It’s synonymous with a private investor,” says Don Hensel, president of North Coast Financial, which specializes in hard money loans. You can also acquire a hard money loan, which is simply a short-term loan secured by real estate. If you’re right on the money, odds are you won’t own this house for long anyway. You’ll either pay cash or take out a mortgage-just consider going for a 10- or 15-year mortgage, which will offer a lower rate. That’s about the most you should pay for your flip without cutting too much into the money you’ll walk away with.Īs for financing a flip, it isn’t that different from buying a regular home. To get a ballpark figure for a run-down property, cut that price by three-quarters (75% of $300,000 = $225,000). Let’s say, for instance, that homes in tiptop shape in the area sell for $300,000.