Let’s clarify what is fix and flip loan and how they will be beneficial for you!
Fix and flip loan are short-term, real estate loans designed to grow the business of a real-estate investor for making a purchase, renovate & sell it for a good profit.
Basically, the process of buying a property from an auction or foreclosure, fixing the outdated property, turning it into an upgraded version by renovating and selling it for a good profit is flipping.
We all know about the traditional way of choosing a bank loan. It requires a lot of documentation, verification, and ‘excellent’ credit score, and the approval time period is 2- 3 months, the term is too long, usually 5 to 10 years. On the other side, when you look for a fix and flip loan it’s a short term loan with 6-18 months’ term, designed exactly for Fix N’ Flip Business. Additionally, you get the loan approved –within 7-10 days & with average credit score. Fix n flip loans are more flexible than traditional loans because this Program provides flexibility with strict rules and low-interest rates.
Fix and flip loans are usually taking seven to ten days for closing the approval. As the investor needs to have cash on hand for bidding on foreclosure or auctioned properties. The best part is, the lender is more concerned about buying and renovating the property than the person seeking for the loan. It means, you just have to show the plan, “how you will manage to pay back the loan amount after renovating the property” is enough to make the process faster than a bank.
The Fix and flip loans are hard money loans backed only by the property for which the loan was granted. So, there will be no risk of losing your own home. In fact, with Fix N’ Flip Program you have the opportunity to retain your profit after selling your property.
The pace of getting the funding fix & flip loans is better and faster than traditional loans. It takes only 7 – 10 days for approval on the other hand traditional loans need a minimum of 30 to 60/90 days for closing.
Traditional home mortgage goes with strict rules, needs lots of paper work and that is time consuming, time period is 15 to 30 years. When you do fix & flip you need the finances for 6 to 12, sometimes even up to 18 months. So you can buy the property, do the rehabilitation work, place the property into the market, sell it and get the lenders money back and grab your share of the profit. Borrower’s totally out of the hassle. As they just need the money for few months. But when they go with the bank they oblige with the bank for a longer term loan. So your property stacks over there. Fix and flip loans are so flexible it does not need a lot of paperwork, as it is a short-term loan program and this is exactly structured for 6 to 12 months. If you want, the loan can be paid off earlier. Additionally, you can extend the term for 3 to 6 months.
Traditional Mortgage Loan with Banks has a lot of criteria's to fill out for getting the Loan Approved. One of the important requirement that a Bank focuses on is- Condition of the Property. A property with excellent condition stands out in the market for an excellent resell value and thus for a good LTV too when applying for the Loan. Poor Property condition gets your Loan Rejected or, the LTV is very poor to justify your need.
For Fix & flip loans the condition of the property does not matter as long as the After Repair Value ( ARV) justifies the loan amount. As the property is purchased with the intention of fixing it up which ultimately uplifts the Property Value. So, poor property condition is accepted by the lender.
This is one of the most important criteria’s when you try to work with a Bank but with Commercial Lending USA, Credit Score doesn’t matter to an extent.
For a traditional home loan, a great credit score is a must (most of the time). But with Fix and flip lenders Credit Score doesn’t matter because they focus on - how many successful similar project records you hold.
The interest rates are higher in fix & flip loans compared to traditional home loans if you want you can give a 15 to 30% down payment that will pull down your interest rates. Additionally, if you go for early closing that saves you from paying interest (Depends on how early you plan to close the Loan)
Commercial Lending USA always offer you free consultation for Fix N’ Flip Loan. So, if you are a beginner in this business it’s a plus for you. Have a detailed discussion and solve your queries with our expert funding specialist for better funding opportunities. Additionally, after we establish a strong business relationship we will get you Express line of credit (LOC) which will act as your future purchase reserve - for fast purchasing your next targeted projects.
Line of Credit is the most desired Loan Product by any Businessman. It is all because due to the Flexibility of the Loan Structure. You withdraw the Amount when needed and interest is only applied on the Specific Withdrawn Amount (the interest rates applied is even comfortable). With Commercial Lending USA, you get your flexible & desired loan programs. We continuously work as your Financial Advisor with No Fees being applied. We keep on developing your Transaction History which uplifts your Credit Score. We motivate and assist you to grow your Business to the desired height you've dreamed about and you can grow your assets with us.
Additionally, we work with our unique ways when we structure your Loan Program. We exactly know how to match up the Investors guideline which and this is the only reason of our 90% success ratio.
If you are worried about your credit score, no past work history – Contact, Commercial Lending USA, because we have creative ways to support your dreams and we encourage you to explore your Loan option with us.
If you have a structured plan with time and resource along with a targeted profit margin strategy to fix & flip a property, Commercial Lending USA is the right door steps to help you with the funding & proper assistance. Even if you don’t have a structured plan, let us help you with the Process.
For general inquiries:
* Email: [email protected]
* Phone: +1 (571) 544-6600