Learn To Be A Fix and Flip Investor: The 5 Benefits of Leveraging with Flip Loans

Monday, April 3, 2017

The 5 Benefits of Leveraging with Flip Loans

Whether you are still looking for the perfect prospect or have locked in on a neighborhood or unit you love, you're buying power is substantially increased with you utilize flip loans. Leveraging with flip loans allows you to grow your property investment business at a rate you truly want and allows you to purchase and work on more than one property at a time.

5 Benefits of Leveraging with Flip Loans

Timing

While your ideal dream of growing your investing empire may be to use cash or to leverage your own properties to buy additional locations, it will take time. If you are watching the market for deals or have closed in on a hot market with the right types of properties, you may not be able to afford to wait. Using flip loans from a private hard money lender allows you to acquire multiple properties as the same time. Since so much of your money is made on the purchase deal, being able to buy as many properties as you can allows you to perfectly time your deal and ensures that your ideal property doesn’t get away.

Scaling Made Easy

Once you’ve mastered the art of flipping a home or building, you’ll want to do it again and again. Using flip loans allows you to scale your business model up, once you settle on a plan and course of action that works for you. The ability to purchase and flip multiple dwellings at the same time allows you to quickly scale up your business and truly grow. If you have to wait for one deal to close before you start another, scaling and growing your investment portfolio will be much more difficult and time consuming.

Better Tax Deductions

The more homes you have, the more you’ll be able to take advantage of specific IRS tax breaks designed for investors. Since the IRS allows you to deduct for depreciation each year, you’ll be able to claim this benefit for each property you own. Multiple properties also allow you to take advantage of the 1031 Exchange if you sell a property.

Increased Income

When your home is rented out or flipped and sold, you’ll make money. Simple math says the more properties you own that are in habitable condition, the more income you’ll have coming in. Acquiring and rapidly flipping properties allows you to increase the income you receive via rental or sales.

Take Advantage of Low Rates and Prices

Home prices and interest rates won’t be this low forever. Buying now does more than expand your options, it locks in these low rates and prices for you for years to come.

The ability to scale up your business and purchase deals when you find them is a must if you want to make a serious go of it as a real estate investor. Leveraging with flip loans allows you to grow your business at a rate you want to – and to get all of the benefits of owning multiple properties at once.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.