It’s often said that one of the tried, true, and effective ways to invest in real estate is to go with a “fix and flip”. This involves purchasing a home that is in less than stellar condition (i.e.: many foreclosures), fixing it up, making improvements, and “flipping” it for a profit on the seller’s market. In the majority of cases, this is indeed what happens.
As with anything, however, even a fix and flip has its downsides. For one, it requires staying on budget and not getting too carried away with improvements that may make it harder to sell. Furthermore, unless you decide to take the do-it-yourself approach, there is also the need to manage multiple contractors which can become a hassle if, for example, deadlines are tight.
And then there is the profit. Yes, a fix and flip can reap great rewards when it is successful but once the taxes are paid and the money is received, that’s where it ends. There is no additional money coming in unless you decide to embark on another fix and flip project.
This is one of the reasons why you may wish to look into rental properties. Think of them as oil wells of sorts where the money is consistently coming in. Yes, you’ll have to deal with property management but there are plenty of companies that will do this for you professionally. It’s something to think about the next time you need a hard money loan for future property investment.
This update is by hard money loans Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on Florida hard money lending, please call 954-816-0388 or fill out our application.