Fix & Flip Loans
Fix and Flip Loans – Hard Money Rehab Loans – Financing a House Flip
Wave Private Money provides fix and flip loans (hard money rehab loans) in the United States and has over 20 years of experience. Based in San Diego, California, we offer quick approval and funding, competitive rates and professional service. Wave Private Money has proven to be a reliable fix and flip lender, earning many satisfied repeat investor clients. Contact Wave Private Money now and fund your hard money rehab loan quickly.
Fix and flip loans (also known as hard money rehab loans, investment property rehab loans, or house flipping loans) are short-term financing tools that enable a real estate investor to obtain the necessary capital to acquire, improve, and resell a property for profit. Fix and flip financing is available from hard money lenders rather than traditional lenders like banks. Financing a house flip is quick and straightforward for an experienced hard money broker like Wave Private Money.
Rehab Loans – House Flipping Loans – Investment Property Rehab Loans
There are numerous names for a fix and flip loan, but the loan's purpose remains the same. Allowing a real estate investor to borrow funds for a short period to purchase a property, make repairs and improvements, and then sell the property quickly for a profit. When applying for fix and flip financing, the lender may consider the following about the borrower:
- Experience in real estate and experience in fix and flip projects
- Purchase price of the subject investment property
- Amount of cash reserves available for holding costs and rehab costs
- Estimated after repair value of the property
- Estimated cost of the renovation
Hard money rehab loans are either based on the current value of the property or the after repair value (ARV). Many fix and flip lenders prefer to loan on the current value of the property as this reduces their risk in the event that there are issues with the rehab of the property, the estimated after repair value was incorrect or the real estate market begins to decline during the rehab process.
Loan to Value Ratios for Fix and Flip Loans
Loan to value (LTV) ratios for house flipping loans can vary based on the programs offered by the fix and flip lender and the needs of the borrower. LTV’s generally range between 65-75% of the value of the property as lenders require that the borrower has some skin in the game with a sufficient amount of equity invested in the project.
Many novice real estate investors attempting to obtain fix and fix funding for an investment property often request 100% financing for a project. They incorrectly assume this kind of financing is available usually because of misinformation from real estate gurus hoping to sell expensive education programs. Hard money lenders do not want to fund requests for 100% financing as this would put all of the risk on the lender. When financing a house flip, hard money lenders require the borrower to have their own equity invested in the project.
Contact Wave Private Money now and get your fix and flip loan funded fast.
Experienced Fix and Flipper Loan Program
Real estate investors with experience on at least 3 successful fix and flip projects may qualify for financing up to 75% LTV of the purchase price of the property as well as financing for a portion of the rehab costs. Contact Wave Private Money now for additional information on this program.
More Information on Fix and Flip Loans
What is the fix and flip loan application process?
The process of applying for a fix and flip loan is simple and straightforward. Real estate investors who wish to obtain pre-approval need to complete a standard 1003 loan application and submit it to Wave Private Money for review. Upon approval, Wave Private Money can provide the real estate investor with a pre-approval letter to submit with their offers. The pre-approval letter will be contingent on the physical inspection of the property. Real estate investors currently under contract on a property should contact Wave Private Money immediately with information on the subject property, project overview, and submit a completed 1003 loan application. Once the financing has been approved, Wave Private Money will contact the escrow company and begin arranging the fix and flip loan for funding.
How long is the fix and flip financing timeline?
As a direct fix and flip broker, Wave Private Money can quickly fund fix and flip loan requests within 3-5 days if necessary. Funding fix and flip loans within days are usually unnecessary unless another lender fails to provide funding at the last moment, and a new hard money lender must provide financing immediately to save the deal. Most loans are funded within 2 weeks.
Do you provide fix and flip financing for auctions?
The majority of auctions do not allow for financing and will only accept cash offers. If an auction does allow for financing and enables the transaction to go through escrow with title insurance, Wave Private Money will be able to broker the loan. If the auction does not allow for financing, the real estate investor can pay cash for the property and then come to Wave Private Money for a cash-out refinance in order to raise funds for the rehab costs or just free up capital to invest in other projects.
What are the terms for fix and flip loans?
Most fix and flip loans are written for 12 months or less. More extended loan periods are available, but most real estate investors who are flipping houses are trying to complete the project and sell the property as soon as possible. This reduces the investor’s holding costs (loan costs, property taxes, utilities, insurance, HOA payments, etc.), increasing their profit on the project.