Fixing and flipping real estate can be expensive and time-consuming work. However, with the right financing options, a transaction can become a piece of cake for you. This post will discuss some types of fix-and-flip financing options and how they can help your plans.

Home Equity Line of Credit

If you’d like to avoid paying interest on anything that goes beyond what you’re borrowing, a home equity line of credit may be the best option. The funding you get will depend on the equity and value of your home. Throughout the term, you can draw money whenever you have to. You don’t have to use the money just to fix and flip houses, either: Once you’re approved, you can spend the money as you wish.

Bridge Loan

A bridge loan is great if you’re in the middle of selling a house and buying a new one. It’s easy to miss opportunities when you have to wait for your current house to sell, but a bridge loan allows you to buy a new house before closing any deal. This gives you a head start in repairing or remodeling the new house so you’re ready to sell it sooner. While bridge loans are not permanent, they can keep you covered until you find a permanent option.

Cash-Out Refinance

A cash-out refinance is a mortgage that allows you to take out a lump sum of cash in order to invest it elsewhere. Typically, a home mortgage is paid off over time and the remaining balance is used for other purposes like saving or paying off debt. So, when you need more money than you can borrow, a cash-out refinance might be your best bet. This is especially helpful when you have good equity on a current house since you can draw a new loan from this equity.

Investment Property Line of Credit

Another option is to take an investment property line of credit. Like a home equity line of credit, this funding allows you to keep interest payments limited to whatever you borrowed. The difference is that instead of borrowing against a primary residence, you borrow against the property you invested in. An investment property line of credit is great if you need quick funding to either buy or renovate a home.

As you can see, there are several routes you can take if you want to fix and flip property. Knowing your needs and timing your actions can help you get ahead in real estate.