Private Money Nevada
Fix‑and‑Flip Financing: Leveraging Hard and Private Money
Sourcing the Right Properties
Finding a profitable fix‑and‑flip starts with sourcing distressed properties at the right price. In Nevada, these opportunities come from foreclosure auctions, short sales, estate sales, off-market deals, and real estate wholesalers. When you evaluate a potential flip, assess not just the purchase price but also the scope of repairs. Use market data to estimate the after-repair value (ARV) by comparing similar homes in the neighborhood that have been renovated recently.
Estimating Renovation Costs
Accurate renovation estimates are critical. Overestimate, and you might walk away from a deal with real potential; underestimate, and you’ll cut into your profits or worse, run out of money mid-project. Work with a trusted contractor to inspect the property and provide bids for each item. Include line items for demolition, electrical, plumbing, roofing, HVAC, flooring, kitchen and bath updates, paint, landscaping and permits. Always add a contingency—10 percent of the total rehab budget—to cover unexpected issues like mold, foundation cracks or outdated wiring.
Structuring Your Fix‑and‑Flip Loan
Hard money lenders typically finance a percentage of the purchase price plus 100 percent of the rehab costs, up to a certain maximum loan-to-value ratio. Funds for repairs are disbursed in draws. After you complete a stage of the renovation—such as framing, mechanical systems or drywall—you submit photos and invoices to the lender, who may send an inspector to verify progress. It’s essential to plan your cash flow so you can cover the initial work before receiving draw reimbursements.
Managing the Project
Staying on schedule keeps financing costs under control. Delays add interest expense and could lead to extension fees. Before starting, create a timeline with your contractor that sequences tasks logically (e.g., rough-in plumbing before drywall installation). Communicate regularly with your contractor and visit the site often. Keep meticulous records of receipts and invoices; some lenders require documentation before releasing draws.
Exiting the Flip
Your exit strategy is selling the property, often within three to six months of purchase. Price the home competitively based on comparable renovated properties. Stage the home professionally and use high-quality photos in your marketing. Even small details like updated fixtures, neutral paint colors and clean landscaping can impact buyers’ perceptions and help you sell faster. A quick sale means less time paying interest, increasing your net profit.
Ready to Flip Your First House?
Whether you’re new to flipping or a seasoned pro, Private Money Nevada can provide the financing you need. Our fix‑and‑flip loans offer fast closings, flexible draw schedules and competitive terms. Reach out today to learn how we can fund your next flip and help you turn Nevada’s distressed properties into profitable investments.
Contact Private Money Nevada Today:
Phone: (702) 205-7070
Email: info@privatemoneynevada.com
Las Vegas Office: 6230 McLeod Dr. Suite 120, Las Vegas, Nevada 89120
Licensed Nevada Mortgage Lender | NMLS #123456
Find trusted private money lenders offering fast approvals, competitive rates, and quick funding for Nevada investment properties, fix and flip projects, and commercial real estate throughout Las Vegas, Reno, and Henderson.
PRIVATE MONEY NEVADA
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