We offer a number of fix and flip or Rehab Loan Programs.
How to make the most profit on a Fix and Flip loan
Basic Home Improvement Tasks
The hardest part about doing a fix and flip is renovating the home without spending too much money. Learn how to do basic home improvement chores on your own, like painting, resurfacing, and door replacement.
Find the Right Contractors
Hire contractors to do the harder work, like plumbing or electrical work. And once your project is done, keep these contacts handy so you can hire them for future renovation projects.
Find Historic Homes
One of the most lucrative types of fix and flip projects is a historic home. All across America, there are thousands of homes from the 1880s through the turn of the century that have beautiful historic architecture but are very run down. If properly fixed up, these homes could dramatically increase in value and make you a substantial profit.
Speak to a professional before make the offer
There may be things that you don’t realize until after you make the offer regarding location and property type. Remote locations are much harder to finance, and multi-family over 4 units typically require a different financial source compared to 1 – 4 units.
Two Great Fix and Flip Programs
|80% of Purchase & 100% of Repairs||Up to 100% of Purchase and 100% of Repairs|
|Min Loan Amount||$100,000||$100,000|
|Max Loan Amount||$10,000,000||$1,250,000|
|Purchase loan maximum of the current value||80%||up to 100%|
|Purchase loan maximum of After Repair Value||65 – 70%|
65 – 70%
Newer Borrowers start at 65%
|Minimum Interest Rate||7%||10%|
|Time||12 months||9 months|
|Property Types||Single Family Residence, Townhomes and Condos||Single Family Residence, Townhomes and Condos|
|Limit on Repair budget||No limit||No more than 30% of the Total Loan Commitment|
|ARV Ceiling||70%||Transactions only considered up to 75% ARV of the purchase price and repairs|
Credit Application – Required Documents
|Experience||At least one previous flip||At least one previous flip|
|Minimum Credit Score||650||620|
|Credit Pull||3 bureau credit reports required||Only a “soft pull” credit report is required|
|Bank Statements||3 months||1 current month|
|Cash Requirement||Enough to close the transaction. Sufficient cash to pay for repairs that would be reimbursed through the fund control company.||Min $30,000 cash on hand for each transaction in the process|
|Documented Experience||Experience schedule||HUD-1|
|Appraisal||Required to confirm the current and ARV value of the property||Required to confirm the current and ARV value of the property|
Frequently Asked Questions(FAQs)
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.
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.
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.