Fix and Flip Checklist

Fix & Flip Loan Checklist: A Smooth Ride to Renovation Riches

So you’ve spotted that diamond in the rough, a fixer-upper primed for profit in the sizzling fix & flip market. Excitement crackles in the air, but before you dive headfirst into demolition and drywall, there’s one crucial step: securing the right financing. Hard money loans, with their swiftness and flexibility, are often the fuel that propels fix & flip projects to success. But navigating the loan application process can feel like deciphering ancient hieroglyphics. Fear not, intrepid flippers! This comprehensive fix and flip checklist will be your Rosetta Stone, guiding you through the necessary documents and property requirements to land the perfect fix & flip loan.

Fix and Flip Checklist, Gather Your Arsenal of Documents (not so much with Clear Mortgage, we are “document lite”)

• Proof of Identity: Government-issued photo ID, driver’s license, or passport.

• Proof of Income: Recent tax returns, W-2s, or bank statements demonstrating your financial stability.

• Experience in Flipping: If you’re a seasoned flipper, provide documentation of past projects, including purchase agreements, renovation invoices, and sales contracts. Newbies can showcase relevant construction or real estate experience.

• Business Plan & Project Budget: A detailed breakdown of your renovation costs, timeline, and projected sales price. The more meticulous, the better!

• Property Appraisal: A recent professional appraisal of the property’s “as-is” value. Remember, lenders need collateral!

NOPE! Just kidding. Not with Clear Mortgage. Generally, that is all good information to share, but we do not need any proof of income and we do not require an appraisal. Just give us a call and walk us through what you are thinking. We have worked on thousands of deals. We would like to be your trusted resource.

 

Property Prowess: What Your Fix & Flip Must Possess:

• Location, Location, Location: Choose a property in a desirable area with strong resale potential. Think curb appeal, proximity to amenities, and a thriving local market.

• Rehab Rehabilitatable: While distressed diamonds are alluring, ensure the property’s rehab scope falls within your budget and timeline. Major structural issues or hidden horrors are renovation red flags. We are involved in a flip project that ended up having a failing basement wall. An entire new, structural wall had to be constructed. Also, all the exterior cmu walls had to be injected with grout due to stability issues. So, be careful. Do your due diligence.

• Market Matchmaker: Research comparable property sales in the area to determine a realistic post-renovation sales price. Your loan amount hinges on the property’s profit potential. We are more than happy to help with this exercise. Like we said, we have done thousands of deals.

• Exit Strategy Savvy: Have a clear plan for selling the property once renovations are complete. Consider traditional listings, auctions, or even partnerships with cash buyers.

Bonus Tip: This is the typical jargon – “Pre-qualification! Before diving into the full application process, consider getting pre-qualified by your chosen lender. This gives you an estimate of your borrowing capacity and helps tailor your property search accordingly.” This is not the case with Clear Mortgage. Just give us a call, and let’s talk about your project. Remember, a complete and well-organized application speaks volumes about your preparedness and professionalism.

By following this checklist and presenting a rock-solid plan, you’ll be well on your way to securing the financial fuel for your fix & flip masterpiece. So, channel your inner Indiana Jones, gather your documents, and prepare to unearth that loan-approval treasure! We are just goofing a little to keep you reading. Actually, it is so easy a caveman can do it. Just give us a call. With the right preparation and resources, your fix & flip journey can be a thrilling adventure paved with profit and renovation prowess. Please do not hesitate to lean on Clear Mortgage as your trusted resource. Fill your team with all the expertise you can muster to avoid a fix and flop moment.

Now go forth, get your hard money lender lined up, and transform that fixer-upper into a flipping fantastic masterpiece!