I’m representing a group of trust deed investors that I bring deals to. These guys are actively looking for quality projects for JV investment.
They love Southern California Fix and Flip projects. Since I work directly with the check-writers we are able to keep loan costs low and I have an intimate relationship with them, and through many conversations about loan scenarios, I understand their lending philosophies.
They are not restricted to being in 1st position, they will loan in 2nd position and maybe 3rd position if the return is premium.
They provide acquisition, rehab, holding costs and closing costs in some cases. Up to 100% financing, some of these guys don’t really care if you have tons of experience, or have lots of capital, however, having no funds in reserves, and no experience probably would not be attractive to them.
The best clients are: Professionals, and/or experienced Flippers who seek new capital partners or desire to add capital partners to their personal lending circles.
Also those who have access to properties and can secure their purchase contract, they can bring the deal to negotiate a JV Split with a lender that is willing to build a mutual relationship with them.
Simple cosmetic flips, tear-downs, new builds and equity cash-out refinances are their specialty. I’m seeing guys allocate $500K very easily, but by combining multiple private lenders, total loan amounts can be raised just over $2M with another $500K for rehab costs.
Closing times can be 5 days if the deal is ready to go, appraisals are in, and the borrower completes and returns all items needed to close.
I’ve also been seeing the return of “Flipper Lines of Credit” which is structured as an extended hard money loan with ability to cross collateralize assets. These require 5% borrower contribution, They may grant a $5M line of credit with $250K down or $10M line of credit with $500k down. These are especially useful and designed for the busy, experienced flipper who is buying properties regularly and need a revolving credit facility that is dependable and well capitalized.
Landlords who want to buy more rental properties are not capped with my lenders, they can own as many as they like, they are given “single-asset” rental home loans, not blanket loans.
I’ve been seeing an increase in capital available for Fix and Flip projects, as the market stays hot, this will remain to be the case, but after the summer we can expect to see a decrease, especially if we see a Fed rate increase!
Rates and Points are provided on a Case-by-Case basis, it’s not “one size fits all”. You have to present yourself and your project to get a quote.
If you are a borrower and want to submit your project for review and funding, reply below.
If you are a lender looking for further opportunities, contact me.