Short term real estate financing solution for investors and home flippers
If you are a real estate investor who is into buying and selling properties (flipping homes for profit) and do this full time then you know it is a very arduous process when securing a short term mortgage through a traditional bank type lender.
This is simply because the traditional bank type lender is designed to operate their business with long term return on investment in mind. Also, the guidelines they function under requires fully underwritten applications involving credit, income, debt, and documentation review.
The process also dictates that the property in question is only evaluated after the application has been approved, which makes it difficult for the property itself to be approved, especially if there are major renovation work needed in order to bring it up to market value.
These are just some of the deterrents slowing the purchase and mortgage process down if not making it virtually impossible for the investor flipper out there.
Enter the world of alternate financing, where the lender’s focus is to work exactly with the investor flipper, understanding their business model and in assisting more as a business partner than a traditional lender.
Our lender understands this and below are some of the benefits of working with them
- Decisions and approval commitment papers usually within 24 hours
- Funds generally made available in 1-2 business days of approval
- No fee same day valuation of the property
- No renewal fees
- In-house signing
- Down payment as little as $20,000 minimum (so you can keep cash on hand for renovations)
- Prequalification of the property itself may be possible
- Fully open mortgage with rates as low as 7.99% and 2-3% fee
- Assess if the investment may be profitable based on its completed value
- Allows time for the borrower to move the mortgage to a more traditional lender should they decide to keep it as an investment property
Each situation is different, so please feel free to contact us should you be an experienced flip property investor, or are planning to get into this market.