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Once More, Flipping a Home in West Palm Beach Holds Profit Potential

flipping a homeIn conjunction with the rise in house prices, the profit potential for flipping a home in West Palm Beach is once more drawing the entrepreneur-minded.

Flipping a home is the process of purchasing a property — often one in a rundown condition—then improving its value and reselling it for a quick profit. Quick is the key word in this strategy, since a fast turnover allows capital to be devoted to purchase and renovation rather than operating and maintenance costs. It’s why successful house flippers generally focus on quick gains over maximizing profits.

While this has proven to be a lucrative strategy in the past, financing has always been the first major hurdle for anyone flipping a home in West Palm Beach. If you’ve been noticing some of the inviting house-flipping prospects in Palm Beach County, several financing routes sometimes make such a deal possible:

Larger Down Payment

Flipping a house in West Palm Beach in the current lending market will often require a significant down payment. Since launching the project might require at least 25 - 40% for financing, it’s essential that you prepare sufficient cash reserves to complete the renovations envisioned—and successful house flippers suggest you add 20% to the cost estimate!

Seller Financing

Seller financing—a mortgage provided by the home owner—is also called a ‘purchase money’ mortgage. Sellers may be willing to provide financing if they have had trouble selling their property, which is often the case when a Palm Beach County home flipper believes its value can be greatly enhanced by repair or remodeling. Seller financing would be more common were it not necessary that the original owner own the home outright.

Hard Money Loan

Hard money loans—also known as short-term bridge loans—are another common source of financing for flipping a home in West Palm Beach. Hard money loans are backed by the value of the property rather than the credit record of the borrower, and typically feature a lower loan-to-value ratio than found in a bank mortgage. The added risk has a cost: expect to provide a large deposit and a premium for the loan (often 8% or more).

While sub-prime mortgages may no longer be as readily available as they once were, there are still multiple sources of financing for entrepreneurs who can spot profit possibilities for flipping a home in West Palm Beach. With real estate prices continuing to rise, this spring again holds promise in the house-flipping arena. Call me if you are interested in learning about some of the latest prospects!

 

 

    

 

Questions, Comments or For more information you can email Christian Penner at TheMortgageTeam@ChristianPenner.com or visit us online at www.ChristianPenner.com or you can call us directly at: 561-316-6800

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Once More, Flipping a Home in West Palm Beach Holds Profit Potential


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blackwhite#Christian Penner, #Mortgage Broker West Palm Beach talks about #Real Estate West Palm Beach. He also serves other Local Areas and provides home #Mortgage Solutions for Palm Beach Gardens, #Jupiter, #Boca Raton, #Wellington and #Tequesta. #Christian Penner Mortgage Broker Jupiter has the #lowest mortgage rates and the best #home mortgage programs like; #Jumbo loans, #FHA Home Loans, #VA Home Loans, #Reverse Mortgage Home Loans, #Freddie Mac Home Loans, #Fannie Mae Home Loans and #HARP Mortgage Loans. #Christian Penner Mortgage Broker Palm Beach Gardens has Served the area for over 15 years with his #Home Loan Lending Needs and Works with #FEMBI Mortgage in Jupiter. You Can Also Find Him On fb mortgageFacebook at: http://Facebook.com/YourMortgageBanker

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ChristianPenner.com
http://www.christianpenner.com/once-more-flipping-a-home-in-west-palm-beach-holds-profit-potential/
Once More, Flipping a Home in West Palm Beach Holds Profit Potential