Where are the most optimal sources for borrowing capital and the best interest rates for those flipping San Diego Properties?
While those flipping San Diego properties may have access to transactional funding for wholesaling homes, few may use conventional mortgages on a regular basis. Remember that there are many advantages to using this leverage. However, mortgage interest rates are on their way up and hard money lenders will certainly follow this trend as their services become more in demand.
Mortgage rates are still ridiculously low right now, but will no doubt continue to rise over the next decade. Ease of access to credit and terms will likely get better during this period, but for those demanding the highest returns and cash flow, it could be wise to start investigating in other financing options to stay ahead of the curve.
So where can those flipping San Diego properties find affordable rates and appealing terms for borrowing funds and rehab work? The best places to find funding may include:
1. Owner financing
More San Diego homeowners looking to sell their houses fast are offering more forms of owner financing than ever before. These deals may not always offer lower rates, but more flexible terms can balance this out.
2. Commercial lenders
Commercial lenders, not constrained by residential regulations, have more freedom to lend for various purposes and offer more attractive and flexible deal structuring options.
3. Private lenders
Private lending continues to gain steam with many affluent individuals desiring to cash in on the new real estate boom. As a result, private money lenders have become a critical component to those flipping San Diego properties.
4. Pooling funds
Pooling investment funds and creating investment partnerships can be a great way to wield more capital on the most attractive terms.
5. Crowdfunding
Crowdfunding continues to grow with an ever increasing number of platforms and variations for raising funds for real estate businesses and individual projects.
