FAQ's on fix and flip loans:
Is this a good option for a pro-flipper like me?
Fix and flip property loans are designed for both experienced and beginner investors, but having more real estate experience will qualify investors for larger Exposure Limits and potentially better loan terms. Borrowers go through a one-time approval, with yearly renewal, so funding each property loan is faster and easier.
How much can I borrow in total?
If you’re applying for exposure limit approval as an individual, you may qualify for a limit up to $1MM. If applying as an entity, the maximum exposure limit is capped at $10MM. Individual Fix and Flip property loans are available up to $3MM.
How do you calculate how much I can borrow?
We consider both the loan-to-value (LTV), which measures the fair market value, and the loan-to-cost ratio (LTC), which measures the total cost of buying and renovating. We always choose the lesser of the LTV and LTC calculations, which protects both you and our investors.
Will you lend to foreign nationals?
Yes, foreign nationals from approved countries are eligible.
What kinds of personal credit information are required?
Every lender is different and some may require a credit or background check.
Do I have to form an LLC or put my assets in a trust?
No, Exposure Limit approvals and Fix and Flip property loans may be closed as an LLC, a corporation, or an individual. However, some lenders may only lend to entities and so it is advisable to have one formed for this purpose.
What kind of insurance do I have to buy?
For fix and flip loans, we require Hazard, Builder’s Risk, and in rare cases Commercial General Liability insurance. We also require that borrowers carry flood insurance on properties in a flood zone.
Will I be subject to a prepayment penalty?
We require a 90-day minimum interest charge, but otherwise there are no penalties.
