OK! Lenders are coming out of the woodwork with all kinds of new (alternative) loan programs.
Having “Skin in The Game” is the most catch 22 of all catch’s: in order to get a loan, you need to have experience, in order to gain experience you will likely need a loan!
I’ve been working with groups of investors who want to invest passively, and wholesalers and regular homeowners can create and enjoy the opportunity of equity flips in this market..who knows how long it will last, but the funds are readily available now. Nationwide.
They provide home sellers with renovation funds (not a loan) to doll up the property prior to sale. Owners get the funding they need, so they can get top dollar for the home rather than having to accept a low ball offer upon selling.
Realtors earn larger commissions by selling more expensive after-renovated homes (and get more listings by availing renovation funds to their clients).
Investors now have the opportunity to earn more, with much less risk, by funding renovations in partnership with home owners who stand to make much more by fixing and selling, rather than by selling as is.
Contractors get more and bigger projects by referring clients to available renovation funds.
“No Skin In The Game” Program
- No Down Payment
- No Monthly Payments
- No Renovation Payments
- No Loan Application
- No Credit Check
- No Income Check
- No Loan Guarantees to Sign
(You have to pay for yard maintenance and utilities.)
The deal either has to be owned previously or has to be under contract – must be a great deal!
You will need to provide the following info to be considered: Purchase Price, Renovation Budget needed, Property Taxes, also how many months it will be to complete the rehab, next provide comparable properties recently sold within a few miles radius this year, to support the (ARV) or After Repaired Value
- Make sure the contract is assignable as you will be assigning the property to the lenders, after 7 days due-diligence period, they will close in about 10-15 days, once the property is closed you will then get utilities and lawn service going.
- Then you sign a project manager agreement.
- You will be responsible for managing the renovations.
- After you finish renovations, you will mutually agree to list the property with a successful real estate agent.
- Once the property sells, you will split the net proceeds upon the pre-determined equity split outlined in your project management agreement.