Fix and Flip Loan
Our Fix and Flip loan helps you purchase a distressed property, fix it up and sell it for a profit. Most banks won’t lend the funds to purchase nor repair these types of properties as they perceive the risk to be too great, nor are they geared up to service the loans. We, of course, specialize in making and servicing fix & flip loans including lending you the rehab funds and paying those funds out to you in draws as the work progresses.
At The Investor’s Source LLC, one of our goals is to help you keep as much cash in your pocket as possible. Along those lines, we lend up to 70% of the after repair value (ARV) of the property. This means that we can, in some cases, lend up to 100% of the purchase price and repairs if the 70% ARV loan amount covers this.
In most cases, though, unless the loan to after-repair value is very low (ie. 60% or less), our lenders like to see some "skin in the game". That means that you have some cash in the deal, and therefore a tangible stake in the outcome. Typically, this would be at least 10% of the purchase price and rehab, and higher for loan amounts greater than $350K.
Our commitment to you is that we will work closely with you to ensure that the amount of money required is reasonable and still makes the deal a good one for you