Article About Loan
Understanding Fix and Flip Loans Those short-term loans that potential homeowners use to help them gain the necessary financing to purchase a home and then renovate that home in order to sell it to turn a profit (hence the term “fix and flip). Say someone purchases a “fixer-upper” for around $100 grand and then spends about $50 grand renovating that home. They take out a fix and flip loan to finance the bulk of the sale and renovation costs and then sells that property for 200 grand. There is some serious profit to be made for those who are experienced with the “fix and flip” concept and have successfully turned a profit in the past.
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