In a perfect world, house flippers would be able to buy and sell homes using hard money fix and flip financing within 2-3 months for big profits, but that’s more of an anomaly than the norm. Most houses investors buy and sell take 6-8 months and the profits are good ($40-$50K), but not spectacular ($150-$250K).
This property in Pomona acquired with fix and flip financing was a great example of the typical fix and flip property. It wasn’t a huge profit, but it was profitable nonetheless. And when an investor is buying and selling a dozen or more properties throughout the year, turning properties every 5-6 months like this one, the numbers start to add up. Being consistently profitable is a pretty good way to go.
Hard Money Fix and Flip Financing Terms:
- $200,000 Loan Amount (80% LTV)
- 11.00% Interest-Only
- 12-Month Term
- No Prepayment Penalty