Fix and Flip Loans

What Are Fix and Flip Loans?

Fix and Flip loans are often the number one financial solution for real estate investors looking to buy, renovate, and sell properties within a short period of time. Unlike with traditional mortgages, you can get quick access to funds. You can choose to repay your loan in a matter of months or a few years. These loans are what you might call, “Hard Money Loans”.

Benefits of Fix and Flip Loans

Fix and Flip loans are powerful tools that enable the rehab of rundown properties into homes teeming with potential. Here, we look at the benefits of these loans, empowering you to turn a substantial profit with the right strategy:

• Quick Approval and Funding: Unlike traditional loans, fix and flip loans can be approved in a shorter time frame, allowing investors to seize valuable opportunities quickly.
• Flexible Terms and Conditions: Fix and flip loans offer flexibility that’s not available with other types of loans. We will work with you to structure the loan in a way that meets your project’s specific needs. This includes potentially offering interest-only payment options or varying loan terms. Additionally, our Fix and Flip loans are “No Income” loans. You don’t have to provide proof of income to qualify.
• Access to Higher Loan Amounts: Often, these loans provide access to larger sums of money compared to traditional loans, enabling you to make significant renovations and potentially increase the property’s market value considerably.
• Allows for Creativity and Innovation: Fix and flip loans give you the means to bring creative visions to life. With access to funds, you can create attractive features that can set the property apart in the market.
• Opportunity for Substantial Profits: With the right approach, a fix and flip project can yield substantial profits. These loans allow investors to purchase properties at a lower cost, renovate them, and sell them at a higher price, facilitating a potentially lucrative venture.

Eligibility Guidelines for Fix and Flip Loans

Before venturing into the world of fix and flip investments, it’s important to understand the typical lending criteria. Below, we look at the general guidelines that prospective borrowers should meet to secure a fix and flip loan:

• Credit Score: Having a solid credit score is often a cornerstone of eligibility. Lenders generally look for a credit score of 620 or higher, however, with Amres, your credit score can be as low as 600.
• Experience in Flipping Properties: Lenders favor individuals who have some experience in flipping properties. This experience can demonstrate your ability to successfully manage and complete a renovation project.
• Down Payment: Borrower’s should expect to have at least 15% of the property’s purchase price for a down payment. This upfront investment showcases your commitment and reduces the risk for the lender.
• Detailed Renovation Plan: Presenting a thorough and well-thought-out renovation plan is a necessity. This plan should outline the expected costs, timeline, and the contractors or teams who will be handling the renovations, painting a clear picture of how the project will unfold.
• Proof of Funds: Lenders generally require proof that you have enough funds to cover not only the down payment but also the expected renovation costs. This reassurance shows that you are financially prepared to see the project through to the end.
• Asset Documentation: Comprehensive documentation of your current assets is required to gauge your financial stability and the ability to repay the loan.
• Appraisal of the Property: An independent appraisal of the property, conducted by a professional, is required. This appraisal determines the current market value of the property and the potential value post-renovation, providing a realistic base for the loan amount.

How to Apply for a Fix and Flip Loan

Apply over the phone

1. Contact an Amres Loan Officer: Start by connecting with an Amres loan officer to discuss your needs and options.
2. Gather Documentation: Next, prepare necessary financial documents such as bank statements.
3. Complete Application: Your loan officer will guide you through the application process, making sure all details are accurately provided.
4. Loan Processing and Approval: Amres will process the loan, conduct the appraisal, and provide a decision on approval.
5. Closing: After approval, you’ll proceed to closing, where you’ll finalize the loan and become the proud owner of your new home.

Conclusion

Fix and Flip loans offer a vital resource for real estate investors looking to capitalize on opportunities in the market. They provide the flexibility and quick access to funds that these unique projects require.

At Amres, we specialize in understanding your investment goals and crafting financing solutions to suit your needs. Contact us today to discuss how a Fix and Flip loan can be your key to unlocking the potential of the real estate market and driving your investment success.