Intelligent Financing Methods For Fix And Flip Loans In Texas


Intelligent Financing Methods

When talking about making a massive amount of money without investing too much, the first name that comes to mind is house flipping. It’s an easy enough procedure as well.

All you need to do is to –

  • Find a not-so-well-maintained property. 
  • Buy it at a small price.
  • Renovate it properly, and
  • Sell the same at a profit.

Simple enough, right?

Well, yes… as long as you have a hefty amount of cash that you’ll need to finance the process of buying the house and renovating the same. And, how do you do that? Let’s find out!

Top 6 Ways To Finance Your House Flipping Dream


In this section, we’ll tell you about how you can finance your house-flipping project in Texas without going through a massive headache. So, keep reading!

Option – 1: Friend Or Family Loan

Do you have someone in your family who wants to invest in real estate? Well, then, it’s going to be ideal for you to take a “small” monetary loan from them. 

In this case, the money will come from a trusted source. And, there’s no need to think too much about the interest rate as they’re your family. It sounds like a win-win situation, right?

Option – 2: 401(k) Financing

In case you have decent retirement savings, we don’t think you can go wrong with 401(k) at all. Although you might hit a tax penalty, it won’t matter too much if you’re getting profits.

Also, once you create an account, you’ll be in complete control of the money. Plus, there’ll be a little bit of flexibility available as well when it comes to paying back your money.

Option – 3: Personal Loan

When it comes to flexibility, there’s nothing comparable to an unsecured personal loan. Apart from that, it can be used for almost any purpose, and the rate can be pretty low as well.

Additionally, with a personal loan, you can pay it back in monthly installments over a three- or seven-year term. As long as you have a credit score of 650, there’s nothing to worry about.

Option – 4: Financing Partner

Having a financing partner behind you will be an ideal option for you when you have deep knowledge regarding your market. As a partner-in-crime, both of you can work with –

  • Supplying the financing for the business.
  • Finding the best flipping opportunity.
  • Planning as well as managing the whole renovation procedure.

Based on what you and your partner are bringing on the table, both of you will share the profit accordingly. Here’s a tip if you’re new to the market – opt for an experienced partner!

Option – 5: Hard Money Loan

A hard money loan, in essence, is a type of fix-and-flip loan that can be taken from a private real estate investor. It usually doesn’t come with a high-end requirement or anything. 

There’s no need to invest a huge amount of money as well. And, once you apply for it, you can get your money back within a week or two if you choose the right hard money lender in Texas. No need to worry about any delays at all.


Since a hard money lender mostly works with less-qualified borrowers, they tend to charge a much higher interest rate. Besides, they can also keep tacking on fees, which, in turn, makes the whole payable cost of the project much higher.

Option – 6: Business Line Of Credit

If you have good credit and don’t want to get your money elsewhere, a business line of credit will be for you. It’s the best and safest option available out there. And, if you’re capable enough, you can pay the amount back pretty quickly as well.

The only issue with this option is that you’ll need a high credit score, somewhere around 700, to get the money. So, it’s not going to be too easy for you.

Let’s Wrap Up!

As you can see, almost every type of loaning system available out there has an issue or two going on with it. Therefore, it’ll be better if you could read a little more about them and then come up with a decision. This way, it’ll be easier for you to make the most out of your loan without losing too much money. And, you won’t hit any road bumps at all too.

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Himanshu Shah
Himanshu Shah is the chief marketing officer at MyDecorative.Com, and he is also a young enthusiastic writer who is gumptious and talented. He has sound analytical and technical skills. He is a blogger, Digital Marketing Expert who likes to write on home decor.


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