Fix and Flip Advanced Draws

Fix and Flip Advanced Draws

FBC Funding offers Advanced Draws for experience investors. If you are borrowing money for a fix and flip project most private lenders require you to complete a portion of the rehab work out of your pocket, submit a draw request, wait for an inspection and then they will reimburse for the work you have completed. This is industry standard practice. FBC Funding has a program for experienced investors to fund money to start the project and each additional draw is based off of work being complete from the draw we advanced to the real estate investor.

How Fix and Flip Advanced Draws Work

If an experienced real estate investor qualifies for the advanced draws program upon closing the investors account is set up where they have see the loan information and request draws. The account is usually set up two to three business days after closing. Once the clients profile is set up from there profile they can immediately request a draw. The first draw will be no greater than 10% of the purchase price or 20% of the rehab budget. The actual amount to the first advanced draw and subsequent advanced draws are determined by the rehab department prior to closing. this means the borrower who spent there funds to purchase a property and pay closing costs, does not have to deplete their reserves by funding the start of the rehab project.

Once the work has been complete from the funding of the first advanced draw the borrower can request a second advanced draw. The rehab department will be confirm that work has been completed by either ordering an inspection or requesting photos and receipts. This is determined by the rehab department based on the amount and type of work being done. This process continues with the second and subsequent advanced draws until the project is complete. The number of advanced draws depend on the size and scope of the rehab budget. The borrower is not limited to completing just the amount of the draw. They can do more work and the subsequent advanced draws will be larger to include the advanced amount plus a reimbursement of any additional work completed.

How to Qualify for Fix and Flip Advanced Draws

The Fix and Flip advanced draws program is for experienced investors who have completed five projects in the last three years. These five projects can be fix and flip or fix and hold. It is also important that you have done a project of similar size. For instance if all of your projects have been cosmetic in nature and have been $20,000 to $50,000 renovations, it is unlikely you will be approved for advanced draws on a gut rehab of $150,000 or more. When we look at experience we need to determine if you had the experience to complete the project you are looking for us to fund. Every project in the real estate investors experience is not required to be a major rehab for them to qualify for advanced draws on a major rehab. At least one should be of similar size and scope.

Other Advantages for Experienced Investors Above and Beyond Advanced Draws

When an experienced Real Estate Investor qualifies for advanced draws they will also qualify for additional benefits include:

  • Lower interest rates
  • Lower origination points
  • Lower minimum credit score to qualify
  • No monthly payments
  • Credit Facility of $5,000,000 or more depending on experience.

To learn more about FBC Funding Advanced Draws Program and other advantages we offer call 888-848-3114


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Contact Us

FBC Funding
3047 N. Lincoln Ave
Chicago, IL 60657
Phone: 888-848-3114

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