Definition

• Short-term financing for purchasing, renovating, and reselling properties for profit.

Ideal Borrowers

• Investors aiming to buy, renovate, and quickly sell properties.

Down Payment

• Typically 10-20% of the property’s purchase price.

Benefits

• Covers purchase and renovation costs;
• tailored for quick turnaround projects.

Usage Limit

• Short-term use, usually 6 months to 2 years.

Strengths

• Enables rapid project completion;
• potential for high returns.

Considerations

• Higher interest rates;
• market fluctuations can impact profitability.