House flipping is a real estate business model where an investor buys a piece of property, renovates, and quickly resells for a profit. This business model, as opposed to the buy-and-hold real estate business model, works on the principle of cash-in, cash-out.
When you buy and hold property, you are determined on making money from such property on the long-run; however, house flippers are only interested in the short-term ROI (Return on Investment) of a property.
A real estate investor who works on a house-flipping business model faces a lot of problems, including what property to buy, when to buy the property, cost of property purchase, and renovation expenses. Many real estate investors have turned to hard money loans for funding for their house flipping businesses.Continue reading “6 Reasons Why Hard Money Loans Are Awesome For Flipping Houses”