Benefits to Fix and Flip Loans

Are you interested or involved in acquiring, rehabbing and selling residential properties? Fix and flip loans are for real estate contractors, real estate investors and rehab specialists. There are multiple investors (lenders) out there that can create a line of credit for you once you start closing deals and can prove you know what you are doing and trustworthy to make monthly payments and close the loans. There are serious advantageous to fix and flip loans rather having partners.

Here are some benefits to these fix and flip loans:

1.      No income documentation (no tax returns, paystubs or W2’s)

2.      Low credit scores are okay

3.      Endless supply of capital (limited only by how many deals you can find)

4.      Can close with entity such as corporation, LLC or trust

5.      Interest only payments

6.      No prepay penalties

7.      As high as 90% purchase (only 10% down payment) and 100% rehab funds available

8.      Loans offered in 45 states

To summarize what we’re writing, you can do ongoing fix and flip loans with no partners as long as you have some experience such as one to two closed flips in the last 12 months. We even have an investor that does not require any closed deals. The more experience you have the lower the rates are, rates range from 8% - 13%.

Here is a loan scenario and how much capital it would require upfront for a reasonable market:

200K purchase with 40K rehab expense. After repaired value is $325K

Down payment ~ 15% down (200K * .15) = $30,000

Closing costs $8K – 10K.

Total capital needed $40,000.

Total loan amount would be $170,000 + $40,000 (rehab)= $210,000

Assuming your holding costs of 6 months and 5% selling fees to real estate agent. You would net about $46,100 rather than giving away half your profit to a partner. If you can do 3 simple flips per year this would be a six figure income. Not only will it make you great money but it can be exciting as well.

Written by Alex Haiek ?

? [email protected]

? 805-388-4614

https://americanfinancialoans.com