Are you a real estate investor with a few rental properties with big dreams of building a large portfolio but limited cash on hand? Don’t let your financial constraints hold you back from achieving your real estate goals. Cash flow funding could be the game-changer you’ve been searching for. In this article, we’ll explore the benefits of cash flow funding for investors like you.

1. Access to Prime Investment Opportunities

One of the biggest challenges for investors with limited cash flow is seizing lucrative investment opportunities when they arise. Cash flow funding allows you to act swiftly and take advantage of hot properties that may not wait for your savings to accumulate. Whether it’s a fixer-upper, a foreclosure auction, or a competitive housing market, having quick access to cash can make all the difference.

2. Faster Returns on Investment

Limited cash flow often means slower progress in the real estate game. Cash flow funding accelerates your investment journey by providing the necessary capital upfront. With quicker acquisitions and renovations, you can start generating rental income and seeing returns on your investments much sooner.

3. Competitive Edge in Negotiations

Cash talks, especially in real estate negotiations. When you can make a cash offer, sellers often view it as more attractive and may be willing to negotiate better terms. This competitive edge can lead to favorable purchase prices, saving you money in the long run.

4. Flexibility in Investment Strategies

Every real estate investor has a unique strategy, whether it’s fix-and-flip, buy-and-hold, or short-term rentals. Cash flow funding is versatile and can cater to various investment approaches. You have the flexibility to adapt your strategy based on market conditions and your long-term goals.

5. Preservation of Personal Credit

Traditional loans and mortgages can strain your personal credit score and financial stability. Cash flow funding is based on the property’s cash flow and has no impact on your personal credit score or debt ratio’s. This separation helps safeguard your financial health and ensures you have more options in the future.

6. Enhanced Cash Flow Management

Cash flow funding can help you manage your rental properties more effectively. You can allocate funds for property maintenance, repairs, and improvements without depleting your cash reserves. This proactive approach ensures that your properties remain attractive to tenants and continue to generate consistent income.

7. Risk Mitigation

Real estate investing always carries a degree of risk. Limited cash flow can amplify those risks if unforeseen expenses arise. Cash flow funding provides a safety net, helping you navigate unexpected challenges without jeopardizing your investments or financial stability.

8. Scaling Your Real Estate Business

Dreaming of growing your real estate business? Cash flow funding enables you to scale up your operations by acquiring multiple properties simultaneously. This scalability opens up new avenues for wealth creation and expansion. Cash flow funding helps ignite the BRRRR investment strategy and helps an experienced investor build their rental portfolio much faster.

9. Increased Financial Confidence

Investing in real estate with limited cash flow can be daunting. Cash flow funding instills confidence in your financial capabilities, allowing you to take calculated risks and pursue ambitious investment opportunities.

In conclusion, cash flow funding is a powerful tool for real estate investors with limited capital. It unlocks doors to prime opportunities, accelerates your investment journey, and provides the financial flexibility needed to succeed in the competitive world of real estate. If you’re ready to take your real estate investments to the next level, consider exploring cash flow funding options to realize your dreams and build a prosperous portfolio.

Contact FBC Funding today.

Click here to schedule a free loan consultation

or call 888-848-3114

The post Benefits of Cash Flow Funding 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.

We offer many low down payment hard money rehab loan programs with as little as 10% of the purchase price as a down payment and 100% of rehab costs covered. Many Real Estate Investors prefer rehab loan financing programs with low down payments. This allows them to qualify without having to invest large sums of money whether they have it or not. We offer are many programs available with down payment as low as 10% of the purchase price. The problem for lenders is a low down payment rehab loan is a much higher risk. That is why in order to reduce that risk private lenders have underwriting guidelines that are more restrictive when compared with programs requiring a larger cash investment.

The 10 percent down rehab loan program allows experienced investors to qualify for as little as 10% down payment of the purchase price. The loan will fund 90% of the purchase price and up to 100% of the rehab costs. The funding of the rehab costs is limited. The total loan can not exceed 75% of the after rehab value. If the after rehab value is $200,000 then the maximum the loan could be is $150,000 (75% of $200,000 is $150,000).  If the purchase price is $100,000 the down payment is $10,000 (10% of $100,000 is $10,000). Then the maximum available for rehab is $60,000 ($150,000 maximum loan minus $90,000 for the purchase equal $60,000 available for rehab). Even first time real estate investors may qualify for the 10 percent down rehab loan if the have very good credit.

10 Percent Down Rehab Loan Benefits

The other guidelines beyond the down payment that are excellent  benefits of the 10 down rehab loan are as follows:

• Minimum Credit Score – 640 for 90% if you have completed 5 flips in the last 3 years,  700 if you have only completed 2 flips in the last 2 years, 720 if you have completed no flips in the last 2 years.
• Maximum Rehab – 100% up to 75% of the after repaired value with less than 5First time investors have a must have 15%to 20% of the purchase price for down payment unless their credit score is 720+ flips completed in the last 3 years. Otherwise, the maximum the maximum loan will be 70% of the ARV and rehab will be funded at 100% to the 70% of ARV.
• Reserves Requirement – three to six months of the monthly interest only payment.
• Loan must close in entity name
• Deferred Payments option available at 5 plus completed projects

The terms of this 10 percent down rehab loan include being: a twelve month interest only loan with no pre payment penalty (loan term up to 24 months available). Rates are from 10.% to 12.5% depending on loan to value, credit and the experience of the investor. Points are 2% to 4.5% depending on loan size. Minimum loan is $100,000 and the maximum loan is $2,000,000. Loans over $1,000,000 may require a larger down payment on the purchase price and up to 100% of rehab depending on experience.

Whether you are a seasoned investor or a first time investor, the 10 percent down rehab loan could be the best program for you as a real estate investor. When you compare the down payment, rate and points this may be better than the 100% financing or even a higher down payment program with lower rates or fees.

The post 10 Percent Down Rehab Loan appeared first on FBC Funding.

Fix and Flip

FIX AND FLIP

That’s right! You can qualify for a fix and flip loan with no credit check and no income verification.  In fact you can qualify for up to 90% of the purchase price and 100% of the renovation  costs. We now require a minimum credit score of 620 and no verification of income. Due to extensive delinquencies this program has been changed.

This Program Now Requires Minimum Credit Score of 620!

Before 2008 Hard Money Lenders regularly made loans to experienced Real Estate Investors solely based on the value of the property. It was rare that a property would lose value. Since the financial market crash things have been very different. Today most rehab lenders do need to know these three things. They want to know:

• The value of the property: The “As Is Value” and The “After Rehab Value”.
• The financial profile of the Borrower: This includes income, assets and credit.
• The experience: Has the borrower, successfully purchased, rehabbed and flipped properties recently.

With adequate collateral an acceptable credit profile and substantial experience, you would think the the borrower would need to really be a conventional buyer, yet that is not true. As many hard money lenders relax some of these guidelines to invest in purchase rehab investors. Though every hard money or private lender has their own guidelines, all require that their be substantial equity in the property.

Covid 19 update

Before the covid 19 pandemic we were funding loans with no minimum credit score. Due to the pandemic the financial markets are tighter and most programs require 650 or better credit score. With this program we can fund loans with credit scores as low as 620 with no experience. The better the credit score and experience, the better the loan terms are.

REHAB LENDERS

Most rehab lenders require borrowers to have skin in the game as well. Those that do not, have the highest rates and the highest fees. This really is understandable because they are taking all the risk. There must be adequate reward for greater risks. That being said these can still be win win situations for the lender and the investor.

Win for the the lender because the higher rate and fees. Win for borrower who has no little or no money or credit, yet with the right property they can make a substantial financial gain.

SPECIAL REAL ESTATE INVESTOR PROGRAM

Yet, with nearly thirty years of mortgage financing experience my favorite program is fix and flip loan where there are there is not a high credit score required, no income asked or verified and with Loan to Values up to 75% of the after rehab value while still offering competitive rates, competitive fees, and 12 month interest only terms.

This program will even consider first time investors while rewarding experience investors with lower rates and even non recourse options.

So you must ask yourself if you are a real estate investor does your lender offer all of these options???

If the answer is no we can help, if the answer is yes compare our rates, points and fees.

This program now requires minimum credit score of 620

For more information call 888-848-3114

Click Here to schedule an loan consultation

Click Here to apply online

The post Fix and Flip Loan Low Credit Score and No Income appeared first on FBC Funding.

FBC Funding has a wide variety of financing programs for the Estate Investor. These programs range from Residential to Commercial, Fix and Flip to Long Term Rental, Stated Income to Lite Doc to Full Doc, to Individual Properties to Blanket Loans.  As a Broker we do not just market one set of programs to fit all borrowers, but a we tailor the program to meet a borrowers needs.

Here are just a few of the options we offer:

The post FBC Funding Real Estate Investor Programs appeared first on FBC Funding.