Lenders I work with are making loans for homeowners in foreclosure or default.
Bail Out Loans
They are very effective in assisting homeowners in foreclosure or Default in restoring their loan Situation.
65% L.T.V Cash out with Default or Foreclosure
Our Specialty loans
Bailout loan 65% L.T.V
2nd T.D. For Business Purpose up to 65% C.L.T.V
Land Loans up to 70%
Purchase Fix and Flip 90% with 100% Rehab.
1 Day in the Investment business no problem 80% L.T.V. Purchase.
1 Day on Title 70% L.T.V Refinance N/O/O
Gap loans are generally high interest, last option loans that may cost 12% + APR and more than likely will cost a chunk of your profit on the back end. Many lenders will ask for up to 50% of your profits.
Most lenders won’t gap behind another lenders loan. If you lack the funds for a down-payment but your deal has a lot of current or potential equity, you may persuade them to go up to 75% of the ARV or after repaired value. This would include funds for acquisition, rehab and holding costs such as interest payments, etc.
Gap loans can also be self-generated by way of unsecured credit lines, business credit lines or term loans.
Also EMD funding is available to assist in certain situations.
They provide capital based on an average of $10k monthly deposit and 6 months in the business. They can fund in as little as 5 days.
Residential, Multi-Family, Commercial, Specialty Properties and Land
Large or small, condo or townhouse, house or Mansion.
Hard Money & Private Funds Available for Investors
Loans from $75,000 Not many lenders arrange loans as small as $50,000. We will!
Fix and Flip We lend up to 90% of the purchase price and 100% of the renovation budget. In addition, we don’t charge interest payments on the rehab dollars until it is drawn.
Competitive rates and fees You came to the right place if you are looking for a private or institutional hard money!
Bail Out Loans An equity-based program. If we can keep it under 65% LTV, we can bail you out in 7-10 days. (Only CA and TX)
Commercial, Land, Agricultural and Specialty Properties Commercial, apartments, land, Wearhouse, partially completed construction projects, industrial, automotive and many other types of properties are those we lend on.
2nd and 3rd Mortgages We arrange second and third mortgages every month. (Only CA, TX)
Construction Completion/Development Project Got construction project? We have multiple ways to structure your file, so you can complete your project and get it sold!
Business/Merchant Funding Do you need working capital/payroll/expansion for your business? We can fund in 5-7 days. To qualify, all we require is the business to be established for at least 6 months and provide 6 months business and credit card-merchant processing statements. Long Term Rental Loan Programs We offer 5,7,10 and 30-year fixed term, starting at 5.875% rate and can leverage up to 85% LTV
This year one of my goals is to become an even larger resource for the Fix and Flip & Investor Community. After 16 years of service in this industry, we connect investors to lenders and private funding programs nationwide.
After reviewing these new loan offers and working with dozens of lenders, I compiled this list of lenders to refer to interested parties.
In September 2017, I received a referral from a Real Estate Agent colleague in San Diego, his friend in Cleveland Ohio needed funding for a property that was purchased for cash back in July 2017 for $80,000. They purchased the property to be used for a special needs daycare center (special use)
While using personal funds to finance a total interior remodel, they demo/gutted the inside of the property, with this being their first project, they were not prepared for the unexpected expenses that occured.
Their rehab was north of $60,000.
They purchased the property for cash, so the equity should available, right?
In simple terms, yes – but because of these factors the marketability of a potential loan became more difficult:
Location of the asset
Asset type (special use) not just a regular tenant rental, it’s residential property being used as a business.
Value of Asset (As-Is value was only $75K) most fix/flip hard money loan minimums are $150k
Owner/Borrower has 650 Fico, no previous experience flipping homes or land-lording.
This was a long-term hold, but lenders who offer long-term financing at reasonable rates will only loan to stable assets, so she needed a two-step solution.
Gutting the property destroyed the chances of simply cash-out refinancing because the lender immediately required an appraisal inspection!
Getting a lender to approve the refinance knowing the borrower has no previous history of completing rehabs.
Getting a lender to approve the loan knowing the borrower has no reserves! They underestimated their rehab, and needed the funds to complete the renovation. How will they repay the loan?
Developing an exit strategy for the fix/flip loan included adding a co-signor, who also needed to be added to the business LLC.
We applied in the name of the LLC with a very well-known lender, the rate was higher than we preferred, but the points were reasonable and they provided the requested cash-out to complete the rehab and reserve 12 months’ worth of interest payments so she didn’t have to worry about that. Everything was going smoothly, we had title complete, ARV appraisal came in at $160K!
The following days we had a term sheet with $15,000 cash to close as a condition? This included points, closing costs and reserves requirement! The proposed loan amount was $80,000, so I convinced her that we needed to raise the funds from somewhere!
Her father stepped up earlier in the process to qualify for the exit loan as a co-borrower, he has a 700+ fico score. To qualify for the 7.5% rate with 30 yr. fixed or 7/1 ARM with 30-day refi seasoning, you need to have a solid 660+ Fico. I offered to help them raise unsecured funding to fund their deposit to their business account to show reserves, they weren’t happy about paying the fees or the unexpected panic to perform, but reluctantly applied for and received $90k+ in personal unsecured funding from 6 different vendors.
We were ready to close the loan, when the lender suddenly backed out, saying that the DSCR was just short of qualifying?! They didn’t have their act together, it was a gross error from the underwriting team, and my account rep couldn’t get the exception approved.
It was heartbreaking. Three weeks were invested. Now it’s mid-October, in Ohio they are facing the bitter Midwest snowy winter, and she can’t afford to slow down on the rehab..
She was blessed to have the credit cards we raised to take care of expenses, however, because the cards came in her dad’s name, it wasn’t easy to convince him to let the cards go! Her parents feared that she would rack up unsecured debt that she couldn’t pay down. Ultimately destroying her father’s credit.
My team and funding partner located her a fix and flip loan, they agreed to take the rehab bid we put together, ARV appraisal, title work and loan package, it was already packaged and should’ve been a slam-dunk!
She used the credit card she received to pay a small application fee, and they announced a closing date. Unfortunately, it took about 3 weeks longer to get it done, meanwhile, honestly I’m getting nervous – my client called me with her husband on the line and they were concerned as well.
I reassured her that I knew these guys would close & that her case was very solid!
She explained the situation with the credit cards and her inability to use them.
I coached her on how to explain the importance of intent. The whole reason we are applying for multiple forms of funding is to complete the rehab at any cost!
This is your future business location. And until you complete the rehab, you are losing time & money.
Use the unsecured funds to pay your contractors and buy material, when this refi goes through, pay the lines of credit off! But have faith.
She complained that she felt bad bringing her parents into it and that she wanted to stop altogether! She was very discouraged.
I reminded her why she started! You are trying to provide a better lifestyle for your family and it requires sacrifice and your dad stepped up to help his little girl!
Don’t fail him by quitting in the middle of your plan! Continue to execute.
And she did.
Over the next couple weeks waiting in anticipation she racked up some hefty invoices from her contractor and was prepared to pay them via her unsecured credit when BOOM suddenly “Clear to Close” came across our emails, with loan docs and estimated HUD for review and signing to be completed a few days later.
The process taught her a lot about financing, she learned how to qualify for fix/flip and buy/hold loans, as well as unsecured funding.
She had her father add her as an authorized user on all of the trade lines, so now she’ll get her own cards for easy access, she’ll build her credit score through positive history (piggy-backing) and paying all of the lines down again!
She received $90k unsecured financing in 3 weeks, then $75,000 3-4 weeks later @ 12% for 12 months, she received a lump sum at the table, and she has submitted a couple draws already for reimbursement. You complete the work – submit an invoice after you (take before /after pictures), then the 3rd party company reviews, approves and wires the money to your business account in 24-48 hrs.
She now has 6 trade lines that added $90k to her ratios, and if she keeps utilization down under 30%-40% it’ll raise her score to 700+ also with another mortgage trade line, she would be soon staring at an 800+ fico score!
Because we added her dad to the LLC, I’m focused next on helping them create a strong business profile with multiple business lines of credit of $200k-$500k over the next 12 months. These lines will allow them 100% access to borrowing down on the lines without affecting their business credit rating! She can open another daycare center by early 2019, or flip some properties in the area (if they choose).
Finally, since she’s been working on the property the whole time, she estimates being complete with the Refi by mid-January, immediately applying for the refinance into the 30-yr. fixed. The lender has already reviewed her property details, personal credit and financials and pre-approved them, additionally since the 1st payment isn’t due until January for the current loan, she has a great chance to only make 1-2 payments at 12%.
In the end, my team and I were successful at providing a couple rounds of funding for a well-deserved client. We have a long-term solution in place that she can self-sustain and scale up if preferred.
At Fix and Flippers, we approach each potential deal on a case-by-case basis. It’s helpful to remember that we are very active in the market and possess resources that may not be advertised or previously mentioned.
We help clients with credit repair, credit enhancements, traditional and non-traditional funding, both secured and unsecured. We pair up investors to structure successful joint venture partnerships.
We prefer an ongoing working relationship with our clients to offer advice, consulting and resources.
We welcome Brokers and Facilitators to partner with us. You will be protected.
What an amazing year for private funding, hard money, commercial funding, equity funding, business funding, unsecured funding; all kinds of capital for many purposes.
Lenders are stepping up to make loans in ravaged areas in Florida & Texas, as well as nationwide in major urban areas.
Fix and Flippers works with key lending partners to provide the best loan terms and flexible structures so investors have multiple options for leveraging their hard-earned capital.
The climate of private lending has changed because competition has greatly increased, also the influx of 1st-time flippers hungry to get a piece of the pie has produced a perfect storm: lots of inexperienced & unqualified applicants to pre-screen and underwrite – it’s a very expensive operation if you have your underwriters, processors, and assistants burning through hours of documents if they don’t lead to real closes with ROI for the investors involved & for the brokers who bring the business.
This has resulted in more restrictive requirements for approval such as Fico score minimums – from my experience, they question why a successful businessperson who is worthy of a risk of $100k-$1M wouldn’t be able to pay even $1000 to repair and clean up their credit? Also, please don’t mention 2008 or the past economic events – they don’t want to hear that! It’s 2017.. Bottom line – without 650+ fico scores expect high-interest rates (9-12%) and lower LTV’s due to you being a credit risk (80%-85% LTV max)
What mitigates your credit score IF you have a great explanation? (like a recent credit event within the past 2 months caused your score to swan-dive)
Having lots of experience (recent experience) again, don’t mention 2008 or prior…and most lenders may look the other way and consider you a better risk.
What if you don’t have recent experience and your score is not 650+? Then I’d be prepared to bring 15% down-payment, and it doesn’t necessarily need to be seasoned or sourced, but it has to be documented..so have a statement to prove you have it.
Also, I have a great contact that I use for credit repair and authorized user trade lines (I know the account holders) – just ask me for those referrals!
What if you have no experience, and have no down-payment, but have good credit 680+ fico? I’d suggest you apply for my unsecured-credit program to raise up to $250,000 unsecured credit lines/cards in 1-2 weeks to create a 100% financing scenario!
If you are a great candidate– have completed multiple flips and/or rental purchase/acquisitions within the past 24 months, 650+ fico, and 3-6 months of interest reserves in your bank account, I can roll out the red carpet for you in most cases: 90% LTC or 90% purchase, 100% of rehab, luxury spec builds/construction to $2M-$50M, commercial refinances with cash-out or purchase 75%-80%, even small loans from $50k.
Niche Loans: Gap Loans – These are 2nd TD loans that we make behind our 1st TD’s, never others. We will gap great candidates with lots of deal flow that have experience, capital, average to good credit and the deal must be in an urban area and pencil at or under 65% of ARV (after-repaired-value) Lots of our lenders make loans nationwide.
Commercial Financing- 3yr/8yr/ fixed, special pricing this month! Hotel, Apartment, Industrial, Self Storage, Solar Projects, Multi-Family, Office, Warehouse, NNN properties, Shopping Center, Assisted Living, Residential portfolios, Construction Loans, Mobile home Parks, Resort properties. Bridge loans, SBA
We can make QUICK (3-5 day loans) against Free/Clear properties up to 50% LTV, max loan is $50k, the minimum is $5,000!
With my 16th year in real estate, I’d consider myself a massive resource center, and its hard to turn those contacts into a commodity, I hope points & rates won’t keep the best candidates from reaching out! Most of the time, I only give the best deals to people whom I have done business with (broke bread) once we feed each other, I know we have a mutually beneficial relationship.
Let’s finish the year strong and build some alliances!
Projects that involve Acquisition + Rehab (or tear-down) can be financed using many different private-loan structures. Qualifications are heavily based on experience of principals, their personal financial statement(s) and location/marketability of the subject property in mind.
With 10-20% of total project cost, we can get your project financed, this could be in the form of: Seller-carry (2nd position), Cross-Collateral in real property with equity, or Cash.
Private Lenders will fund deals in select markets, on a case-by-case basis. Residential, Owner-Occupied and Non-Owner Occupied, Commercial, Purchase Refinance, Rate/Term & Cashout.
Email or Call me or Reply Below
Greg Wilson – Greg@FixandFlippers.com – 858-386-0949