Slapping on a new coat of paint and cutting the grass does not make a fix-and-flip a fix-and-flip. It is worth investing in a true renovation. if properly executed, the seller of a fix and flip can charge lots more money selling someone their dream house then a half-done home, and then the buyer would be exceedingly pleased with the home that they purchased.
Many first time or not first-time rehab investors do minimum work in order to make a slim profit. But on a macro level is it worth it? Short answer, No: money is being put in by the investor and then additional money is put in by the buyer who is not completely pleased with the renovations done.
Both parties could have huge benefits both financially and utility wise. Thus it would be beneficial for both parties if rehabilitation investments were done properly.
There is a belief that investors have a responsibility to provide better houses for tenants. Thereby, creating new standards and better qualities of life overall. While half-done fix and flips may provide a short-term profit, for the economy and society as a whole it is wasteful.
If you are considering going “all in” for a fix and flip, Refresh Funding can provide Florida-based loans for individuals seeking Rehab loans for Fix and Flips. Refresh offers fix and flip rates starting at 9.99% for a 12 month term or rental loan rates starting at 7.99% for 36 month terms. We like to think of ourselves as your choice for Private Mortgage Funding & Lending. It is Refreshing to know that the bank is not your only solution– Refresh Funding.