Fix and Flip Loans for Profitable Property Investments
What is a FIX AND FLIP LOANS?
Fix and Flip loans are short-term loans designed for real estate investors interested in buying and/or renovating a property and selling it for profit. Fix and Flip loans are specifically used for residential real estate investments and can be used for partial or complete renovations, or for the purchase and renovation of a property.
At Equity Lending Solutions, we offer faster financing with excellent terms. Simplified loans, amplified profits.
What is a FIX AND FLIP LOANS?
Fix and Flip loans are short-term loans designed for real estate investors interested in buying and/or renovating a property and selling it for profit. Fix and Flip loans are specifically used for residential real estate investments and can be utilized for partial or complete renovations, or for the purchase and renovation of a property.
At Equity Lending Solutions, we offer faster financing with excellent terms. Simplified loans, amplified profits.
Fix & Flip Terms
PROPERTY TYPE
Homes with 1-4 Units ( 5 units and above on a case by case basis)
Loan Amount
UP TO US$ 5.000.000 (Loan amount above US $5M subject to longer approval time and additional requirements)
TYPE OF LOAN
Interest only short term loan with a balloon payment at maturity.
MAXIMUM LOAN TO COST
90% of purchase price, 100% of Rehab costs
MAXIMUM LOAN TO ARV
75% TERM LENGTH Up to 12 months + 6 months extension
BASE RATE
9.5% (Interest Only payments on disbursed amount)
MINIMUM FICO SCORE
700
PREPAYMENT PENALTIES
NO PREPAYMENT PENALTIES 10-14 DAYS CLOSINGS
FOREIGN NATIONALS ACCEPTED
+ 0.25 to base rate
TERM LENGTH
Up to 18 months.
EASY DRAW PROCESS
REQUIREMENTS
- 3 months of bank statements
- ID, passport, (US visa for foreign nationals)
- Entity Documents (LLC or Corp), EIN & OP Agreement
- Rehab budget (if applicable)
- 6 months liquidity/reserves
- Non-owner occupancy certification
- SSN for credit report and background check
- Evidence of insurance (full replacement + 500K liability)& builder’s risk insurance (if applicable)
- Minimum Fico score of 700
- Signed loan application
FAQ
Do I need renovation or construction experience for a "Fix and Flip" loan?
Yes, it’s vital to have proven experience with a minimum of three projects.
Can I apply for a "Fix and Flip" loan for commercial properties, or is it exclusive to residential ones?
At Equity Lending Solutions, “Fix and Flip” loans are exclusively available for residential properties.
What happens if I cannot sell the property after renovation or wish to retain it?
Suppose you face challenges in securing a quick sale or decide to retain the property. In that case, you can transition to a DSCR loan, a long-term financing solution with more favorable terms and extended durations.
How long does a typical "Fix and Flip" project last?
The duration varies based on the property’s condition and the extent of required renovations. However, the goal is to sell the refurbished property as swiftly as possible, typically within 6 months to a year.
How do you manage disbursements during the various construction stages of a "Fix and Flip" loan?
Disbursements are made after the completion of the work. An assigned inspector will evaluate the property, and upon their approval, the agreed-upon amount will be disbursed.
Are there any penalties for early payments or settling the "Fix and Flip" loan ahead of schedule?
No. At Equity Lending Solutions, we don’t levy any penalties for early payments or for settling the loan before its due date.
