- Fix and Flip Rehab Loans
Fix and Flip Real Estate Investors
Fix and Flip Real Estate Investors are business people who purchase properties in need of rehab at bargain basement prices and sell it right away without doing any work or do rehab and sell it once the rehab has been completed. Fix and Flips were very common back in the 2000’s where financing was easily accessible, however, after the 2008 Real Estate and Market Collapse, over 77% of fix and flips real estate investors were forced out of business due to lack of financing. Many Fix and Flip Real Estate Investors went through either bankruptcies, foreclosures, and sometimes both due to the Real Estate Crash and Meltdown of 2008.
The 2008 Real Estate and Credit Meltdown
The 2008 Real Estate and Credit Meltdown has devastated millions of fix and flips real estate investors. Fix and Flip real estate investors make money when they sell the rehabbed properties they sell. However, many fix and flip real estate investors were sitting on inventory of finished products and could not sell during the real estate and credit meltdown of 2008. Most fix and flip investors saw the value of their property inventory literally plummet below what they owed. Many had to file bankruptcy and many others had to undergo foreclosure proceedings. Millions of real estate agents, mortgage brokers, real estate attorneys, contractors, and home improvement companies had to go through bankruptcy and many changed fields or left the field altogether. Over half of mortgage companies and mortgage brokers shut their doors and left the field. Real estate agents had to get second jobs as bartenders, waiting tables, driving cabs, and taking on other jobs. The whole mortgage and lending industry went through a major overhaul. Mortgage brokers now need to undergo an extensive federal and state background check, financial credit check, and take national and state exams even those that have been in business for decades. It was a major financial and economic shakedown.
Real Estate Market Has Recovered And Is Still Recovering
The real estate market has been recovering starting in 2011 and is continuing to do so now. First Time Home Buyers and Home Buyers with bad credit are buying homes due to the lenient lending guidelines by FHA. Home buyers with prior bankruptcy can purchase a home after a 2 year waiting period and with a 580 FICO credit scores with 3.5% down payment. Home buyers with a prior foreclosure, deed in lieu of foreclosure, and short sale can purchase a home just 3 years after the recorded date of foreclosure or 3 years after their short sale date reflected on their HUD-1 Settlement Statement. Fix and Flip Real Estate Investors are now back in business due to Hard Money Capital Group. Hard Money Capital Group’s largest clientele base are fix and flip real estate investors. Fix and Flip Real Estate Investors are repeat customers of Hard Money Capital Group. Investors buy properties, fix them, and flip them to end home buyers.