Every fix and flip investor, whether they have a surplus bank account or are just starting out, needs a quick way to profits - sometimes that is a loan.
Loans are actually OPM - other people's money. The loans we offer are short-term (up to a year) that are intended to help you, the "flipper," to buy, rehab, and sell a residential property. The funds you receive are from investors who want to lend you the money - and some of them are investors, themselves. Are you in a spot where you have two or three rehabs going at the same time but found another great deal but are cash poor? Are you under contract and just need enough to help fund the purchase and rehab? Just fill out the loan application and see if you qualify for these funds.
Who needs an investor loan?
Most investors who flip homes need cash to actually purchase the home. Many rehabbers cannot get loans quickly if at all, as a bank loan is dependent on credit score and ability to pay the money back (over many years). The loans we offer are short-term, and they are based on the actual property and rehab costs, not on your personal background. It is good to have these things available:
- List of past rehabs (if any)
- Information on the property in question (the one you need the loan for) such as address
- How much you need, broken down into sections (such as purchase price, closing costs, renovation costs, contingency)
- ARV (after repaired value) with some comps to show the going prices of current similar sold properties.
Yes, there will be more information needed, this is just to start.
Just starting out in the world of "Fix&Flip"?
Fortunes have been made. Fortunes have been lost. If you are just beginning the journey, you need to take a good look at yourself and make sure you will stick with it. Do you have a partner? Do you have a team of people who will help you, such as a contractor who will help you with an estimate on each job detail? A great contractor is one who has worked a lot with fix & flips, who can walk you through the property BEFORE you decide to buy it. Each detail will cost you some money - even "free" isn't free. They will tell you if you need new paint, flooring, or maybe even get a black mold check (if you find something suspicious). Much of what you do will be predicated on what you will do after the property is finished with rehab - are you going to keep it to rent out, or are you going to sell it and take profits?
These loans are for investors, not for your personal property where you will live.
Whether you are going to rent it out or sell it, your rehab business can be a goldmine.
Rehabbing a house is not easy - that is, if you do all the work yourself. Some people have done this, so if you have experience you may be able to do this, too. BUT, if you have the right team in place, you can be successful and even do more than one property at a time. This is where you may need us. We can look at your plans, look at your timeline and if we feel that you have a great deal and you have your ducks in a row, we will possibly be able to help you with your funding.
You need a plan and a deadline - but most of all you will need to fund the project. You can either fund it yourself OR use OPM, and we are waiting for you to give us a call! If you want to start small but have plans to scale your business, we can help you!
First things first - get a property under contract, one that you know needs work, and buy it where you have room to fix it up, sell it and make a profit. There are classes and webinars on what to look for, at what percent of ARV (after repaired value) you should pay, and how to assess the amount of repairs needed (your contractor should help you with that part). If your numbers work out, you will know how much you can pay for the property, how much the repairs will be, and how much profit you will gain. Once you get the property under contract, you apply to us for funding.
Questions? You can give us a call to discuss possibilities.