REAL ESTATE FIX & FLIP INVESTORS!?

Deana M. Devereaux • November 4, 2020

What does a wholesale real estate fix and flip investor (otherwise known as a “flipper”) do?

The most successful flippers are off-market property gurus! Their reach is long, with connections that always have the best deals. They buy real estate properties at huge discounts, (these properties often need major renovations) using an estimated after repair value (ARV), which is based on comparable homes on the market. These flippers borrow the purchase price and the amount of their rehab budget, complete all renovations and sell off the property for great profits.


They find the property in the worst shape in the best neighborhood. Put in the time, money, and sweat equity needed to renovate the home and bring it in line to compete with comparable homes on the market.
Then, they sell the home at a profit, ideally within just a few months.
Buyers look favorably to buying a home already rehabbed where they don’t have to do the work. So, they will pay more than the price of the house prior to the flip.
In the end, investors price the home for buyers to get the move-in-ready home they want, allowing themselves to be paid for the work they did on the rehab itself.

Below are the details of our 100% Aquisition/ 100% Rehab Program for all Legal Residents of the US, which is GREAT for real estate Investors:

Loan Type: 100% Purchase, 100% Rehab (Tiers vary based on credit) 

Who Can Borrow: Qualified Experienced investors, as well as FIRST-time real estate investors. Individuals, sole proprietorships, partnerships, corporations, LLCs, LLPs, and LPs who are citizens of the United States or holders of “Green Cards”. 

Min/Max Loan Amount: $50,000 - $1,000,000

Property Types: 1st Lien - Investor 1-20 Unit Non-Owner Occupied Residential, SFR, 50/50 Mixed-Use, Commercial and Modular

Rates: As low as 9.99% Interest Only, payable monthly (rate depends on income documentation type, borrower experience, and credit score)

Terms:  Varies per experience - 4 month, 8 month & 12 month options - Extensions Available Up to 6 months 

LTV: Up to 65% of ARV (After Repair Value)

Prepayment Penalty: None

Exit Fees: None

Minimum Credit Score: 620 - FICO scores below 620 will need a co-borrower or guarantor with strong credit and financials.

Income Types Accepted: Full Doc, Lite Doc (personal, business <gain on sale>, net rental)

Liquidity:  Must have at least closing costs + 6 months reserves (3 Months paid at closing).

No Contractor approval required – DIY acceptable (will still need a Scope of Work & Inspection)
Co-Borrowers/Co-Signors: Accepted! This can strengthen the overall Credit, Income &/or Liquidity Draws unlimited. 


States We Can Loan In:  Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Missouri, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia, and West Virginia.


*****New York Investors: We do not lend in Queens, Bronx, Brooklyn, Staten Island, or Manhattan.*****



HOW TO QUALIFY - IT IS RELATIVELY EASY!


This is NOT a stated, no questions asked, zero credit scores showing, 100% program. A tri-merge report will be obtained on each Borrower. The credit report must have been obtained within ninety (90) days of loan closing.


Full Doc - Min 620 Credit Score:

 • 6 Months Bank, money market or securities account statements - All pages, even if blank
• You can use 60% of the value of 401(k) or IRA plans (1 month required, using the most recent balance)
• Two (2) years (most recent) personal/corporate/partnership tax returns
• Two most recent paystubs

Lite Doc - Min 700 Credit Score, or you will need to go FULL doc:
• 3 Months Bank, money market or securities account statements - All pages, even if blank
• You can use 60% of the value of 401(k) or IRA plans (1 month required, using the most recent balance)
• One (1) years (most recent) personal/corporate/partnership tax returns
• Most recent paystubs



EASY LOAN PROCESS


  1. Email your scenario over.
  2. We will pre-approve and price out your loan.
    You will complete and return an application along with other required documentation.
  3. Only FIRST-time Borrowers with this program pay a required $250 application fee (not to us as the Correspondent Lender, but to the investors directly). You only have to pay this ONCE. It is never charged again.
  4. Once your loan is closed, submit draw requests as needed. Your funds will be wired right away.



RESERVES/LIQUIDITY REQUIREMENTS 

 

Borrowers must demonstrate sufficient cash flow to qualify. Various financial information and income sources are analyzed when approving your loan.


You must show a minimum of all closing costs & 6-month interest reserves (3 Months paid at closing)



OUR CUSTOMER DEFINITIONS 


New Customer:  You have ZERO loans funded within the past 2 years. 


Repeat "Premiere" Customer: You are super FAST! You are looking for 4-month term loans, you have 5+ loans with us in the past 2 years, no more than $2M outstanding, and perfect payment history with our loans.


Returning Customers:  You have funded/paid off more than 1 loan within the past 2 years. You do not qualify as a Repeat "Premiere" Customer.



GUIDELINES ON ISSUES 


Bankruptcy: Cannot be currently in bankruptcy (active). BK must be discharged and closed before closing. Chapter 13 cases filed with the last twelve (12) months and Chapter 7 cases discharged within the last twelve (12) months will be considered on a case by case basis with a satisfactory explanation from the Borrower.


Charge Offs, Collections, Judgements: Charge-off and collection accounts greater than three (3) years old and aggregate amounts less than or equal to $7,500 within the past
three (3) years may be left open. Individual charge-offs, repossessions, collections, and judgments over $1,000 within the past three (3) years must be satisfactorily explained. Exceptions will be considered on a case by case basis. Charge offs, collection accounts and judgments that affect title must be paid before closing or from the loan proceeds.


Foreclosure: We will not lend on any property currently in foreclosure unless it is fully satisfied that the transaction is arm's length. Exceptions will be made on a case by case basis.
Borrowers with foreclosure activity with the past twenty-four (24) months will be considered on a case by case basis


Condominium Eligibility: If the property is part of a condominium association, you will need to obtain a condominium questionnaire and insurance certificate from the condominium association to ensure that it meets eligibility criteria.


Email your scenarios NOW!

CHECK OUT SOME OF OUR RECENT BLOG POSTS

AFFECTING THE MORTGAGE INDUSTRY? NEW LAWS 2022

By DEANA M. DEVEREAUX • June 21, 2022
It’s important to stay up to date on the ever-changing landscape that is the mortgage industry. It’s possible that the newest laws passed by congress, Fannie Mae, and Freddie Mac could affect those looking to get a mortgage, or refinance in the coming months. We’ve put together all the latest on the newest and upcoming mortgage laws affecting the industry. Additional due diligence for condo buyers If you’re looking at buying a condo that is 20 years or older, you may have to jump through a few extra hoops before signing the final loan docs. Conventional loan buyers will have to go through an additional due diligence process that includes obtaining answers on safety, soundness, structural integrity, and habitability of condos from the condo association before the loan can be processed. If you’re looking at a condo this spring, it’s best to get prepared now. While this extra due diligence step is a pain, it’s in your and your lenders best interest. This extra due diligence step was born out of the devastation of recent condo building collapses in the U.S. New fees for vacation home financing and high-balance loans If you thought 2022 was the year for. A second home, vacation home or jumbo upgrade, it may still be but you’re going to be looking at additional fees. Upfront fees for these types of loans are expected to increase between 1.125 percent to 3.875 percent. Fannie Mae and Freddie Mac explain that these increases in the second home market are to keep first-time homeownership rates low and facilitate equitable and affordable housing. You can still buy down these increases with points just like you can buy down an interest rate. This rate increase comes as we saw the housing market skyrocket and borrowers take on additional debt to compete in this hot market. Self-employed borrowers rejoice – loosened regulations Thanks to the pandemic, the number of freelanced workers has increased. The good news keeps on coming because lending criteria has relaxed for self-employed borrowers. The COVID-19 pandemic saw an increase in requirements for self-employed borrowers. If you’re a freelancer, you no longer need to provide year-to-date profit and loss statements and three months of bank statements. We’re back to the good old days of using tax returns to show income! If you’ve been waiting to buy a home because you’re a self-employed borrower, now is the time! In the past, borrowers had to show creditworthiness through any number of on time loan payments including credit cards, first mortgage loans, car loans and more. The strict creditworthiness requirement affected many buyers that did not have credit cards, mortgage loans, or car loans. Now your mortgage loan provider can use a verification tool to check bank deposits for on-time rental payments, and other creditworthiness information. Say goodbye to mounds and mounds of paperwork proving you pay your loans on time!

DO YOU REALLY NEED A REAL ESTATE AGENT?

By Deana M. Devereaux • June 14, 2022
 The real estate agent that you’re working with to buy your home should be your advocate. You want to ensure that they are aware of all risks and benefits associated with the property you’re looking to buy. There is a major benefit in having a good real estate agent because they can ultimately help you make money on the purchase of your home in the long run. If your agent shows you homes where you could add an additional bedroom or bathroom or they show a property where you could finish the basement, they’re helping you gain equity in the property. On the flip side of that, if they don't understand your search area and they show you a home that is overpriced and they suggest that you go in over the true value of that home, you’re losing money on the transaction. It’s important to work with someone that you trust to guide you through the process and help you make decisions that will help your bottom line, not hurt it.

THE INS AND OUTS OF FINANCING A 2ND HOME

By DEANA M. DEVEREAUX • May 23, 2022
Step 1 – Decide How You’re Going to Use the Second Home Your down payment requirements and loan types will differ depending on what you plan to use your second property for. For example, do you plan to use it as a vacation home, secondary residence, or full-time rental property? A vacation home or secondary residence may qualify for a conventional home loan. When qualifying for a second conventional loan, the process is much like your first mortgage except you will be required to put down 10 percent. If you are purchasing the home to use as an investment property or full-time rental, you won’t qualify for certain loan types such as FHA or VA loans. You will also be required to put down a larger down payment than a vacation home or secondary residence. In addition, you may have to meet stricter debt to income ration requirements. All hope is not lost though! You can still qualify for a vacation home or secondary residence if you plan to rent the home out on apps like Airbnb. Typically, you must occupy the home for some portion of the year, and the home must be a one-unit home that can be used year-round. We can help you figure out what loan type you qualify for. Step 2 – Save For Your Down Payment There are multiple ways to complete this step. You can save the traditional way and put away a portion of your paycheck every month. You can also use the equity in your primary home to fund the down payment of your second home. There are multiple programs available such as: · Cash out refinance: A cash out refinance allows borrowers to borrow up to 80% of their home’s current value. The only caveat with this option is that your primary home’s monthly payment will increase. · HELOC: A HELOC, otherwise known as a Home Equity Li ne of Credit. This avenue differs from a cash out refinance because you are not refinancing your primary home’s mortgage. This is a good option if current interest rates are higher than your primary home mortgage interest rate. The last thing you want to do is refinance to a higher interest rate!
Show More

Please Share!