Do you flip homes or need money for the renovation of a rental unit you currently own? Fix and flip financing is designed for real estate investors. These loans and lines of credit allow you to purchase a property and renovate it so that you can sell it for a profit or maximize the rental income you will receive from a newly refurbished unit.
The last thing you want to do is totally fund a project yourself as far as the purchase and all the construction. Your resources are limited and will limit the number or size of projects you can take on. Learn the top reasons why you need to use fix and flip financing.
What Is Fix And Flip Financing?
Fix and flip loans and lines of credit are for commercial developers, residential investors, commercial investors, real estate agents, and real estate brokers. Basically, they are for anyone who buys and renovates properties for cash. They are short-term loans used by investors to buy, improve, and then sell a property for financial gain.
What Can I Use Fix And Flip Financing For?
The type of loan and line of credit details may vary slightly from lender to lender, but in general, they can be used by various real estate investors to renovate, fix, and then flip single-family homes and multi-family properties. You can use a fix and flip loan and line of credit to purchase a property at auction or from a distressed seller to renovate and sell it at a profit. They can also be used to buy a property and then make improvements so you can command higher rental values or to purchase a piece of land with a blighted structure, which you intend to tear down and replace with a more valuable structure like a duplex.
Never Worry About Where The $$$ Will Come From For Your Next Deal Ever Again!
Ivanhoe Capital Advisors will get you approved for a rehab/development line of credit that you can use for the next deal and the next so that you can continually do business, even multiple projects at a time. For example, let’s say you are approved for $1 million on an exposure line. You use $250K of that on project A…You would still have $750K available for another project or projects still.
You can use this line for multiple loan products including multi-family, portfolio 1-4 units, or 30-year rental loans for 1-4 units. You can actually match the loan product according to whatever your strategy is for each individual project.
You will be personally underwritten only one-time for this line of credit and never again! Only the project will be underwritten from then on…That’s half the battle right there that you will not have to worry about.
Now, another major advantage is that with this line of credit in place you will be able to present cash-offers from now on! I don’t have to tell you that with a cash offer you will more than likely get better deals and preferential treatment from sellers.
You will have a long-term strategy in place to jumpstart your real estate career with this proven product!
Would you like to see the type of results you might experience? We’ll tell you a few success stories.
For instance, we had a client who had the opportunity to buy a 14-unit building. Previously, this client had only flipped single-family homes. At the time of the purchase, rents on one-bedroom apartments were $600 and $750 on two-bedroom apartments. He converted the one-bedroom apartments to two bedrooms that will rent for $1250. He also converted the two-bedroom apartments into three bedrooms that will rent for $1400. After the project is complete, he will have a nice cash flow and the value of the property will double. We were able to secure him a loan for 75% of the purchase price and an additional $280,000 for the property’s rehab.
Another client had the opportunity to acquire two commercial properties. The two properties had about 40% occupancy so the cash flow wasn’t sufficient. The price for the combined properties was $625,000 and he needed another $100,000 in rehab funds. We were able to get him $469,000 of the purchase price and the full $100,000 for the rehab work. In about six months, the work was done and the apartments were all rented allowing him to refinance and receive a long-term loan.