What is your loan process to submit a fix and flip loan?  

1. Send us your loan scenario with all details so we can price it out for you and let you know the maximum loan to value, interest rate and term.
2. We will send you a complete breakdown of our hard money loan or DSCR loan offer. 
3. If you accept our offer, we will send you our loan package to complete along with a list of documents that need to be submitted. 
4. Once we receive the application package, the file will be entered into our portal, and we will send you a DocuSign for credit/background check authorization as well as a link to pay for the appraisal. 
5. Appraisals take 3 days for a rush and 5 days (business days) for a regular appraisal. 
6. Once the appraisal is in, assuming the borrower has submitted all requested documents, the file will go into underwriting. Underwriting turn time is a few hours to 24 hours. 
7. Once the file is approved to close, it will go to our attorney, who will reach out to the title company with closing instructions. 
8. Fix and flip loans close in 7-8 days, ground up construction loans close in 8-10 days and 30-year DSCR rental loans close in 14 days or less. 

Ken has been a hard money lender for over 25 years. He has funded over 25k deals for investors in that time. Ken specializes in fix and flips, ground up spec construction and 30 year DSCR loans. He is also a real estate investor in NJ and NY.

Updated Fix and Flip Lender Guidelines

As of 9/1/2024 we have expanded our fix and flip program with higher values. Here are some program highlights

• 1st timers we will now allow up to 100k budget and 80% of purchase/100% repairs
• Get credit for flips completed outside our normal 36-month lookback period as follows – for all deals completed over 36 months ago, 2 deals will add 1 tier credit to your experience
• Licensed Realtors and GC’s will get an automatic 1 tier bump

New Fix and Flip Parameters for Late 2024

Below you can find our basic parameters for our tiers – loan to values, max loan to cost, max rehab budget

– For tiers 3 and up we will consider all deals with a mid-score of 600 or better

Our New Draw Process – Same day draw funding

We are now funding draws the same day that you request your construction draw. We are using the snap app to do this. The process is simple

1. Request the link to let us know what you are looking to draw for 
2. Within 30 minutes of this you will get a link for the snap app
3. Go to the property, open the app, upload the pictures
4. If the pictures are in by noon eastern, your wire will be out the same day! 

What is house flipping? 

House flipping is a popular way to make money in real estate investing. It involves buying a property, making improvements and upgrades, and then quickly selling it for a profit. The goal of house flipping is to generate a significant return on investment while minimizing risks. In order to be successful, house flippers need to understand the local market environment as well as how to find and evaluate potential projects that can yield a high return on their investment.

One of the most important aspects of house flipping is having an accurate assessment of value for the properties that are being considered for investment. An accurate analysis will help investors determine which houses are best suited for flipping and what types of repairs and upgrades can lead to the highest returns on investment. Additionally, investors should take into account factors such as current market conditions, tenant demand, housing supply in the area, local housing trends and cost estimates for renovation when assessing potential flips.

Finally, it’s important for house flippers to have realistic expectations about how long it will take to complete their renovations and how much they should expect to make from each flip. Flipping houses requires dedication, hard work and patience — but with the right knowledge, skillset and connections in place it can be very rewarding financially. Investing in real estate offers many benefits including financial freedom and security — but taking the time to do your due diligence can help ensure you get the highest return possible from each project you undertake.

Case Studies – A Few Recently Funded Fix and Flips

Brunswick GA – Fix and Flip of historic home

• Loan Amount $540,000
• Units 1
• Loan to cost 78%
• Term 12 months
• Purchase Price $461,000
• Budget $180,000
• ARV $840,000

Fix and Flip Loans for Beginners

Fix and flip loans for beginners provide an excellent way to get into real estate investing with minimal funds, and fix and flip lenders can make all the difference in a beginner’s success. Due to the speed at which fix and flip lenders process applications, borrowers do not have to worry about complicated application processes or lengthy waiting times for approval. In addition, although fix and flip hard money loans often come with higher interest rates than traditional mortgages, they are much easier to qualify for since fix and flip lenders evaluate applicants based on the deal and their mid credit score, not their personal income. You can start a successful fix and flip business as a beginner with the right lender by your side.

Beginning real estate investors may find fix and flip hard money loans attractive. Hard money loans can be used to cover the upfront costs of purchasing a property and renovating it. They usually require less of a down payment than traditional mortgages, which makes them an ideal choice for those just starting out in the world of real estate investing. In addition, hard money lenders typically have fewer restrictions than traditional lenders, so it’s easier to get approved with less paperwork. However, hard money loans also carry higher interest rates than other financing options such as mortgage loans. As such, it’s important to do your research before committing to any type of loan.

What are Fix and Flip Loans in Real Estate Investing?

A fix and flip loan allows investors to buy properties with the intention of remodeling them and reselling them for a profit. As a result of these loans, investors can access capital more quickly, making it easier to take advantage of real estate investment opportunities.

In order to secure a fix and flip funding, investors must have enough funds to pay closing costs, including title and transfer fees, as well as a down payment of approximately 20% of the purchase price. The lender will then provide the remaining funds for the purchase as well as the repair money. The majority of lenders also require borrowers to keep some extra funds on hand in case unexpected expenses arise during renovations.

The investor must complete renovations quickly in order to capitalize on short-term profits and take advantage of market conditions. A fix and flip loan features a shorter repayment period than a traditional mortgage, usually between 6 months and 1 year. A renovated property can be sold after the repayment period if all goes well, and investors will profit from their investment.

Why Choose Fix and Flip Loans For Your Next Project?

Fix and Flip Loans are a vital tool for real estate investors. It is a loan made by a hard money lender for the investor to buy, fix and sell a house. More recently, many investors have been rehabbing houses and then renting them out to hold as a long term rental.

Banks just do not understand that you can buy a property, put some money into it, and it could be worth a considerable amount more once you do this.

Yes, I know banks have their 203k program, but closings on those are mostly limited to homeowners (this is not an investor product) and typically these are not quick easy closings like hard money loans are.

Not sure which markets you should be looking at (if you fix and flip outside your home market), then this article “where to invest as a fix and flipper in 2022” is a great read for you.