Fix & Flip Loans are short term, real estate loans used to purchase and rehab a property to sell as soon as possible which is typically in 3 to 12 months. These loans are called Hard Money Loans and are used only for investment property projects. Real Estate Fix & Flip Loans allows real estate investors to leverage the banks money to acquire the property and receive the money needed to fix the property to be sold. Whether you are a beginner real estate investor or a seasoned pro, the John Thomas Team with Primary Residential Mortgage can help you with all your Hard Money Loans and Fix & Flip Loans by calling us at 302-703-0727 or APPLY ONLINE.
What are Fix & Flip Loans?
Fix & Flip Loans also called Hard Money Loans are used to purchase and renovate properties by Real Estate Investors in order to sell quickly at a profit. Conventional Loans or Traditional Mortgages are designed for people who are looking for long term investments typically more than 12 months and are restricted from use on fix and flip properties.
Hard Money Lenders fill the gap for financing real estate investor projects that are short term which are typically between 3 and 12 months. The investor’s goal is to purchase and renovate the property as fast as possible so can sell the property and pay off the Fix & Flip Mortgage Loan and capture their profits.
Hard Money Lenders do not have the time frame to make money like traditional mortgage lenders because the loans are paid off far to quickly so to compensate for this, real estate investors must pay points and a higher interest rate to compensate the Hard Money Lender.
Guidelines for Fix & Flip Hard Money Loans
If you are a real estate investor in search of money to fund your business, then the Fix & Flip Loan is the perfect solution. Below are the guidelines for a Fix & Flip Loan:
- No prior investor experience required
- 12 Month Interest Only Loan with No Pre-Payment Penalty
- 100% Rehab Financing Available
- Up to 90% LTV of Purchase Price
- Up to 80% ARV (After Repaired Value)
- Up to 90% LTC (Loan to Cost)
- Minimum Loan Amount is $75,000 with Rehab or $100,000 with no Rehab
- Max Loan Amount is $4 Million for 1-4 Unit Properties
- Max Loan Amount is 7.5 Million for 5-29 Unit Properties
- Rehab Available on Refinances
What Types of Property are Eligible?
The property types that you can use a Fix & Flip Loan for are as follows:
- Single Family Residence (SFR)
- Town Homes
- 1-4 Unit Properties
- Multi-Family 5-29 Units
What Types of Hard Money Loans are Available?
There are three options for financing your real estate investment business: Fix & Flip, Fix & Rent, and Bridge Loans.
Fix & Flip Loans – Hard Money Loans for investors who are buying distressed properties, rehabbing, and selling. Sensible, Flexible, & Fast
Fix & Rent – Hard Money Loan for the acquisition of the property and renovations but then refinance into an Investor Cash Flow Loan to hold as a long term rental.
Bridge Loans – Hard Money Loans for interim financing for investment properties where a fast close is needed and minimal or no rehab is planned.
How Do You Apply for a Fix & Flip Loan?
If you are a real estate investor and want to get started buying and flipping property, then the Fix & Flip Loan is your best bet. You can get started today by calling the Hard Money Lending Team of Primary Residential Mortgage at 302-703-0727 or APPLY ONLINE