Deferred Payment Fix and Flip loan

Whether a new or experienced investor getting pre-approved for a fix and flip loan is an important beginning step in the investment process. It can help you in a number of ways.

The Benefits of Getting Pre Approved for a Fix and Flip Loan

• Determining your budget. Before you start looking at properties, you need to know how much money you can afford to spend. Getting pre approved for a fix and flip loan will give you an idea of your budget and help you narrow down your search.
• Building credibility with sellers. When you have a pre-approval letter, it shows sellers that you are serious about buying their property and that you have the financing in place. This can give you an advantage over other buyers who are not pre-approved and just prequalified.
• Speeding up the closing process. Once you find a property that you want to buy, being pre-approved  can help you close the deal faster. This is because the seller knows that you have the money to buy the property and that you are not going to back out of the deal.
• Giving you peace of mind. Having a pre-approval letter can give you peace of mind knowing that you have the financing in place to buy a property. This can help you focus on finding the right property and negotiating the best price.

These benefits are good for new and experienced investors seeking Chicago Hard Money Loans or nationwide funding.

In addition to these benefits, getting pre-approved for a fix and flip loan can also help you:

• Get a better understanding of the terms of the loan. The pre-approval process will give you a better understanding of the terms of the loan, such as the interest rate, the length of the loan, and the monthly payments. This will help you make an informed decision about whether or not to buy a property.
• Start planning your renovations and budget accordingly. Once you have been pre-approved for a loan, you can start planning your renovations and budget accordingly. This will help you make sure that you are not overspending on the renovations.

Overall, getting pre-approved for a fix and flip loan is a wise investment. It can help you in a number of ways, including determining your budget, building credibility with sellers, speeding up the closing process, giving you peace of mind, and saving you money in the long run.

You must understand, when you get pre approved for a fix and flip loan you, the buyer, are approved, but the property is not. The lender must still approve the property and the renovation budget.

FBC Funding offers many Fix and Flip Programs, for Chicago Hard Money loans and nationwide including; 100% financing, no monthly payments options, revolving credit facilities and more.

GET PRE APPROVED FOR A FIX and FLIP LOAN

contact us today 888-848-3114

or

click here to schedule free loan consultation

The post Why Get Pre Approved for a Fix and Flip Loan appeared first on FBC Funding.

DUE TO CORONAVIRUS PANDEMIC THIS PROGRAM IS SUSPENDED UNTIL FURTHER NOTICE

Hard Money Loan at 7% Rate

With rates as low as 7% and / or points are as low as 1% this is the lowest cost hard money or fix and flip loan on the market. This hard money loan is for Residential, Multifamily and certain Mixed Use properties. Experienced real estate investors with great credit and liquidity can qualify for the lowest rate and or the lowest points in the market. Of course rates and points are based on risk. The clients with the lowest risk get the lowest rates. The criteria we use to determine the lowest risk in this program are experience; credit with liquidity and net worth a compensating factors. I will explain criteria and benefits of the best program for real estate investors.

Real Estate Investor Experience

Experience is determined by the number of investment properties you have purchased, rehabbed and sold or held for rental income in a defined time period. Most hard money programs only review the last two to three years. This program has a five year review period. I talk to many investors who are contractors or realtors or those who have many years of related real estate, construction, renovation or similar experience. Their industry experience is helpful for their success and can be used as a compensating factor in some programs, but it does not meet the experience requirements if there was no ownership. There are 3 tiers based on experience they are: Novice with 0-2 projects, Professional with 3-15 projects and Elite with 16+ projects. Again this is over a five year look back period.

Experience not only equals the flips you have done in the five year period, for this program experience equals the number of rentals you currently have and those you have purchased and sold during the the five year look back. This would then reflect not only your rate but, also your exposure limit. Exposure limit is the outstanding balance of mortgages you have in this program. You may be eligible for a ten million dollar credit limit based on experience, credit, liquid assets and net worth.

Real Estate Investor Credit

Yes credit is important if you want the lowest rates. For this program the minimum credit score is 620. You will not get a 7% rate or even an 8% rate with a 620 credit score. There are 3 credit score levels: Level 1 720+, Level 2 680 – 719 and Level 3 620-679. Of course the best rates are reserved for clients with the highest credit scores. The good thing is they will only pull credit report once and all projects done over the next year will be without a new score (unless you request a review because you believe your profile is better). So the Real Estate Investor with 16 completed projects (Elite) and a credit score of 720+ (Level 1) will be on track for the 7% rate.

Real Estate Investor Liquid Assets

Liquid Assets are simply defined as Cash or cash like accounts which include: Checking, Savings, Money Market, CD, Roth IRAs/Non-Retirement Stocks/Bonds/Mutual Funds. Equity in property that we will provide cash out refinance is acceptable. Secured loans and credit lines are only acceptable when funds are withdrawn and deposited in the bank. There is a 60 day seasoning requirement and any large deposits will need to be sourced. A large deposit is considered 25% or more of the previous balance. The minimum liquidity for this hard money program is $50,000.

Real Estate Investor Net Worth

Net Worth is simply assets minus liabilities. To be considered for Credit Line exposure limits greater than $4,000,000 and investor must have a net worth of at least 30% of the credit line. For example, if an investor wants a $5,000,000 credit line they must have a net worth of at least $1,500,000. If an investor wants a $2,000,000 credit line there net worth is not reviewed.

Low Rate Low Point Hard Money Loan

If you are a residential or commercial real estate investor with good credit and liquid assets of $50,000 or more, whether you are a Novice, Professional or Elite Investor you may qualify for the lowest rates and lowest points on any hard money loan in the market.

For more information call 888-407-6953

or email louisj@fbcfunding.com

The post Hard Money – Fix and Flip Loan at 7% appeared first on FBC Funding.

No Down Payment – 100% Rehab – Closing Costs Rolled Into Loan

No Cash for Down Payment!  No Cash for Rehab! No Cash for Closing Costs! No cash to the table at all. True 100% financing for fix and flip for exceptionally well qualified borrowers. 100% financing up to 70% ARV. If the purchase, rehab and closing costs are all covered at 70% of the after rehab value there is no cash to bring to closing. Rates and fees are competitive for for investor fix and flip funding. DUE TO COVID 19 PANDEMIC THESE TERMS HAVE CHANGED. The maximum ARV is 65% and the borrower must pay closing costs.

Who Qualifies for 100% Fix and Flip Loan Program

Exceptionally qualified borrowers only.

• Exceptionally qualified borrowers with minimum 680 credit score.
• Exceptionally qualified borrowers with at least 10% of the loan amount in liquid reserves.
• Exceptionally qualified borrowers with verifiable income and no more the 43% DTI
• Exceptionally qualified borrowers who own there personal residence.
• Exceptionally qualified borrowers for a full document, Loan Qualifications

Benefits of the 100% Fix and Flip Loan

• 100% of Purchase Price
• 100% of Rehab Costs
• Closing Costs rolled into the loan
• Max Loan Limited to 70% of After Rehab Value
• First Draw Shortly after closing to start renovation
• Pay interest only on funds you have used, not the full committed amount

Terms of The 100% Fix and Flip Loan

• 100% of Purchase and Rehab up to Max of 70% After Rehab Value
• 9 month Interest only loan
• Rate is Prime Plus 6.5%
• Additional Collateral Required – primary residence lien (even with no equity)
• Residential 1 – 4 non owner occupied properties
• Commitment Fee 3%
• Origination Fee 1% to 2%
• Loan amount $75,000 to $500,000
• Free Pre Approval Available for fast closings

Program Availability of The 100% Fix and Flip Loan

This program is not available in every state. Below are the states for the for availability.

• Illinois
• Chicago
• Indiana
• Ohio
• Pennsylvania
• New Jersey
• Colorado
• Florida
• Texas
• DC Metro Area
• Maryland
• Virginia
• North Carolina
• South Carolina
• Colorado
• Kansas
• Missouri
• Tennesse

The post 100% Fix and Flip Loan – Including Closing Costs appeared first on FBC Funding.

Close Fix and Flip Loan In Five Days

Experience investors can close in five business days once they are approved for the Fast and Easy Fix and Flip loan. Once approved for the program experienced real estate investors will have final terms in one business day of full submission. Once approved for the program experienced investors will have clear to close in as little as five business days.

Approval Requirements

Approval requirements are easy for experienced investors.

They are as follows:

• Four completed flips in the last 2 years (Ten for Pro Designation)
• No bankruptcy or foreclosure in last 2 years
• No Felony Convictions in last 7 years
• Liquid Assets of at least $25,000
• Minimum Credit score of 550 (660 for Pro Designation)

Once approved credit is only pulled every 6 six months, not every deal and assets are verified on once every nine months (12 months for Pro Designation).

Documents Required for Borrower Approval

• Signed credit authorization form

• Bank Statements

• Schedule of Real Estate Owned / List of Past Projects

• Entity documents

• Voided check (for ACH)

Once approved experienced investors only need have their property approved which facilitates the 5 day closing.

Documentation for Property Approval

• Property Address

• Scope of work—completed in template

• Executed purchase and sale agreement

• Requested loan amount (purchase and rehab)

• Insurance / title contact information

• Property access instructions

• Property Pictures: Exterior pictures required; Interior pictures recommended

Additional Benefits of The Fast and Easy Fix and Flip Loan

Five Day Close: Approval in 24  hours of full property submission. Clear to close in as little as five business days.

5 Million Dollar Credit Facility: Once approved experienced investors have access to as many loans as they choose up to $5,000,0000 of outstanding loans. This allows the ability to fund multiple loans simultaneously.

Option to Pay Points After Sale of Property: Pay standard origination points at closing or pay expanded points at the sale of the property. This reduces cash needed to close.

Purchases and Refinances Acceptable: We treat refinances just like a purchase as long as the property was purchased within 6 months. If you need to pay cash you can recover your money in 5 business days.

Fast and Easy Fix and Flip Loan Terms

This is a twelve month interest only bridge loan with no prepayment penalty. The rates are as low as 7.25% based on experience, loan to costs, location and property type.  The points are based on the loan size and they range from 2 points to 6 points.

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