Fix and Flip Loans
- 85% Loan to Cost
- Zero Point Options
- Fast closing
- Experience Required
How to Make the Most Profit on a Fix and Flip Loan
Looking to get the most out of a fix and flip loan? Here are 4 ways to do just that.
Two Great Fix and Flip Programs
| 80% of Purchase & 100% of Repairs | |
|---|---|
| Min Loan Amount | $200,000 |
| Max Loan Amount | $3,000,000 |
| Purchase loan maximum of the current value | 80% |
| Purchase loan maximum of After Repair Value | 65 – 70% |
| Maximum Loan to Cost | 85% |
| Minimum Interest Rate | 8.5% |
| Term | 12 months |
| Pre-Payment Penalty | None |
| Property Types | Single Family Residence, Townhomes and Condos |
| Budget | 100% |
| ARV Ceiling | 70% |
Credit Application – Required Documents
| Experience | At least one previous flip |
| Minimum Credit Score | 650 |
| Credit Pull | 3 bureau credit reports required |
| Bank Statements | 3 months |
| Cash Requirement | Enough to close the transaction. Sufficient cash to pay for repairs that would be reimbursed through the fund control company. |
| Documented Experience | Experience schedule |
| Appraisal | Required to confirm the current and ARV value of the property |
Frequently Asked Questions(FAQs)
Is there a significant return on investment on fix and flip investments?
As with any business venture, it’s understandable that you’d want to make sure this process is really worth the project time ahead of you. Profit is something that you really need to do your homework on regarding the market value of the property you are buying, the cost of repairs and the value after.
Do I need to document the cash I have on hand?
Yes, you would need to provide bank statements that show enough funds to cover the down payment and closing costs. Additionally, you would need to have enough cash on hand to pay for renovations which would be reimbursed after inspection.
What common mistakes should I avoid?
One of the biggest mistakes with most first-time flippers is biting off more than they can chew. Remember to take it slow and learn from your first go-around. You’ll make mistakes along the way, there’s nothing wrong with that. As long as you’re working with a trusted lender, they’ll work with you to learn the process and help you set yourself up for success.
Your financial journey starts today
Let us help you get there.
Contact Us
(657) 600 – 6909