Deferred Payment Fix and Flip Investing

Welcome to the dynamic world of fix and flip investing, where the old adage, “You have to spend money to make money,” isn’t just a saying—it’s a strategy. For new investors, navigating this realm can be as challenging as convincing a cat to take a bath. But fear not! The key to unlocking your potential in this market lies in understanding the funding options available for fix and flip investing, particularly the role of hard money lending. And who better to guide you through this than FBC Funding?

Fix and Flip Investing: The Allure of Hard Money Lending:

Hard money loans, unlike traditional bank loans, are the superheroes of the fix and flip investing world. They swoop in with faster approval times, less stringent credit requirements, and the flexibility that traditional lenders often lack, like a cape-wearing financier in a world of suits and ties.

Advantages for New Fix and Flip Investors:

1. Speed: In the fix and flip investing game, time is more than just money—it’s the golden ticket. Hard money loans are processed at the speed of light (well, almost), allowing you to seize opportunities before they vanish like a mirage in the desert.
2. Flexibility: Hard money lenders, like FBC Funding, aren’t as rigid as traditional banks. They’re like the cool aunt or uncle who understands that life isn’t always black and white. This flexibility can be a lifesaver for new investors with unique situations.
3. Asset-Based Lending: Your investment property is the star of the show. Hard money lenders focus on the property’s potential, not just your credit score. It’s like being judged on your dance moves rather than your singing skills at a talent show.

FBC Funding: Your Fix and Flip Investing Partner

At FBC Funding, we don’t just lend money; we invest in your success. Our prequalification process is like giving you a treasure map, showing you the path to understanding the costs and profit potential of your investment projects. We guide you to know how to analyze your project to better prepare you to choose the right property for your fix and flip investing.

1. Tailored Solutions: Every investor is unique, and so is every property. We offer customized lending solutions that fit your specific needs like a glove—or a well-tailored suit.
2. Expert Guidance: We don’t just hand over the cash and wave goodbye. Our team provides ongoing support and advice, ensuring you’re as prepared as a scout on their first camping trip.
3. Transparency: We believe in clear, upfront communication—no hidden fees, no surprises. It’s like having a GPS with the most reliable route, avoiding all the traffic jams and roadblocks.

Conclusion:

In the world of fix and flip investing, hard money lending is your secret weapon, and FBC Funding is your trusted ally. We’re here to help you understand the intricacies of your investment, ensuring you’re as informed as a librarian in a bookstore. So, embark on your investment journey with confidence, knowing that with the right funding and guidance, the sky’s the limit. And remember, in the world of fix and flip investing, the right property is a story waiting to be told—and you’re the author.

For more information on how FBC Funding can help you succeed in your fix and flip investing ventures, click here to schedule a free loan consultation or call 888-848-3114. Let’s turn those investment dreams into reality, one property at a time.

The post Successful Fix and Flip Investing appeared first on FBC Funding.

FBC FUNDING offers multiple True Hard Money Loans. Each Loan has different guidelines and here are three of the programs and guidelines.

What is a True Hard Money Loan

A True Hard Money Loan is a business purpose asset based loan.  A True Hard Money Loan is based a few factors.  The first factor is the as is value of the real estate being used as collateral. The second factor based on importance, is the current cash flow of the collateral. This is followed by the credit profile and the potential future value and future cash flow of the collateral. The True Hard Money Loan places most or all emphasis on the current value and current cash flow, with little emphasis on future value, future cash flow and  borrower credit profile. Because these are riskier loans the loan to values are lower and the costs are higher. Here are guidelines for three of our True Hard Money Loan Programs.

True Hard Money Loan 1 – Business Purpose Loan

• Repayment:
  • Interest Only – for 36 months
  • Amortizing – over 36 months
  • Hybrid – interest only for 6 months the amortized over 48 moths but due in 36 (will have a 55% of principal balance due)
• Loan Term: Up to 36  months
• Pre-Payment: 12 months of interest payments
• Minimum Loan: $200,000
• Maximum Loan: $2,000,000
• Payment Frequency: Weekly (similar to MCA)
• Minimum Credit Score: 475
• Minimum Time in Business: 1 year
• Rate: Up to 36%
• Max LTV First Mortgage:
  • Residential 65% to 75%
  • Commercial 65% to 75%
  • Industrial 60% to 70%
  • Land 25% – 50%
• Max CLTV Second Mortgage:
  • Residential 60% to 70%
  • Commercial  60% to 70%
  • Industrial 50% to 60%
• Advantages:
  • All property types considered
  • Higher LTVs less closing costs equal more cash in pocket
  • Second mortgages considered
  • quick close
  • Owner Occupied property considered if used for business
• Disadvantages:
  • Higher interest rate factor and payment
  • Weekly Payments
• Docs Needed:
  • Schedule of REO
  • Last 3 Bank Statements
  • Application

True Hard Money Loan 2 – Residential and Commercial Property Loan

• Purchase or Refinance
• Loan Term: 12 to 24 Months
• Seller Carry to 100% CLTV – OK
• 50-55% LTV for Commercial Properties
• 60% LTV for Residential Properties
• Any Credit Score Qualifies
• We Require the Property to be in a Population of 35k+
• Minimum Loan $200,000
• $15 Million on Good, Clean Properties
• $3 Million Maximum on all Others
• Rates 14% and up
• Points 5% and up
• Advantages:
  • Residential and Commercial
  • Purchase and Refinance
  • 100% CLTV
  • Larger Loan Amounts
  • Lower Rates
• Disadvantages:
  • Lower LTVs
  • Higher Fees which reduce cash in hand
• Docs needed:
  • Application
  • Schedule of REO

True Hard Money Loan 3 – Residential Loan

• Loan Term: 12 to 240 months
• 75% LTV for Residential Properties
• UP to 65% ARV
• Any Credit Score Qualifies
• Minimum Loan $50,000
• $1 Million Maximum on all Others
• BPO only
• Rates 14% and up
• Points 5% and up
• Advantages:
  • Residential, Commercial, Mobile Homes and Land
  • Purchase and Refinance
  • Smaller Loan Amounts
  • Quick Close
• Disadvantages:
  • Lower LTVs
  • Higher Fees which reduce cash in hand or out of pocket
• Docs needed:
  • Application
  • Schedule of REO

For More information about a true hard money loan and how it can be used in your financing goals

call 888-848-3114

or click here to schedule a free loan consultation.

The post TRUE HARD MONEY LOAN GUIDELINES appeared first on FBC Funding.

FBC Funding has True Hard Money Loan Options.  We can facilitate funding True Hard Money Loan options. True Hard Money loans are pure asset based lending with little or no requirements based on the borrowers credit, experience, or liquid assets. These loans are based primarily on the equity of the real estate as collateral for the loan. If you have a property with a lot of equity there is a good chance we can get funding for you.

True Hard Money Loan Options

Here are some reasons borrowers choose True Hard Money Loans even with higher rates and points.

• Foreclosure Bailout
• Maturity Bailout
• Construction Bailout
• 100% Purchase CLTV (seller second mortgage)
• Non Cash Flowing Property
• Poor Credit – Great Property
• IRS
• Creative Financing
• ETC

True Hard Money Loans Are Risky Business

Lenders who fund True Hard Money Loan Options are taking a big risk. By funding deals for borrowers who have poor credit it is a greater risk. By funding deals for borrowers with little or no recent and similar experience it is a greater risk. By funding deals for borrowers with little or no verifiable, sourced or seasoned funds it is a greater risk. Any one of these factors would be a reason why an institutional Hard Money Lender would not fund these deals. Many deals have many if not all of these negative factors and they may still get funded based on the collateral type and the equity in that collateral. Because these are extremely risky loans, they are more expensive. Higher rates, higher points and higher fees are usual for True Hard Money Loan Options.

True Hard Money Loan Options Qualifications  

The qualifications are simple. The collateral makes the deal. The property type, the property condition, and the loan to value (LTV) are the primary qualifications. A secondary qualification is the exit strategy. Contrary to popular belief most True Hard Money Lenders do not want the collateral. Yes every deal must have very good equity and be an extremely marketable property. That is only because the these are very risky investments and the lender needs to protect their funds.

• ACCEPTABLE PROPERTY TYPES INCLUDE: Residential 1-4 unit properties, Residential Multifamily 5+ unit properties, Mixed Use properties, Office, Retail, Warehouse and light industrial properties. Each loan is made on a case by case basis with an understanding that the viability and marketability of the collateral determines the deal. As such our true hard money programs will accept these and other property types (except vacant land) but will take a close look at the property and base their funding on the quick sale as is value of the property. The maximum loan to value is 65% for Residential 1-4 unit properties and Residential Multifamily 5+ unit properties, 60% for Warehouse and Mixed Use properties and case by case on all other property types.
• Acceptable Exit Strategies Include:   Renovate and Refinance or Sell but there must be a believable verifiable plan to accomplish what your goal is. Lender will determine if it your exit strategy is viable.

These are the only 2 qualifying factors. Is you property acceptable and does the borrower have a viable exit strategy. Beside that the lender will assess the risk and the LTV offered as well as points and fees will be dictated by the risk.

True Hard Money Loan Options Costs

As a minimum expect to pay an interest rate of at least 12% to 15% or higher. As a minimum expect to pay points of 6% to 10%. Expect to pay for title, appraisal (or BPO) processing, underwriting and closing fees. On refinances, other than the appraisal fee, many of these fees can be rolled into the loan up to the maximum LTV. An Interest reserve escrow can sometimes be added to the loan up to the maximum LTV.

FBC Funding can facilitate True Hard Money Funding for the right property with a viable exit strategy. For the lender the return and LTV must equal the risk. For the borrower the higher cost must be financially worth the loan. If this is the case, call 888-848-3114

or

click here to schedule a free loan consultation

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