Oakland Fix and Flip Loans
Fix and flip Lending involves real estate investing. Investors purchase properties that need fixing, fix up the properties and flip them by selling for a profit. The goal is for investors to fix the property, and sell it at a higher cost than the property was originally bought. This is where fix and flip lenders come handy. Fix and flip lenders help investors find ways to flip real estate properties no matter the credit standing, income or time on the job. We provide funding for your fix and flip properties.
Fix and flip loans assist investors in renovations and property purchases. The main goal is to flip for a profit. Most properties are already in distressed conditions, and the investors job is to fix them up to get the properties ready to sell as quickly as possible. House flipping, when done successfully, can bring in a nice profit for real estate investors. There are several types of fix and flip lending options, including:
Bridge Loan: This loan type is a temporary loan which covers the timeframe during the time a home is purchased and when one is sold. The real estate transactions are separate.
Home Equity Loan: This loan is similar to using a credit card. Investors are issued borrowed funding from their real estate’s value. This can be used as funding for new purchases.
Bank Loan or Mortgage: These loan types are more long term, up to 30 years.
Hard Money Loan: This type of loan is secured by using real estate as collateral. It is short term, and used for purchasing and renovations.
Refinance Loan: This type of loan occurs when an investor takes a second loan out on an existing property. The proceeds are used to finance new real estate investments.
Investment Line of Credit: This is a line of credit which can only be used for specific investment property use.
Real Estate Crowd Funding: This is a popular type of investment which involves real estate investors apply to receive crowdfunding and being listed on reputable crowdfunding sites.
Are there guidelines for Oakland Fix and Flip Properties?
Many distressed properties that investors are interested in, do not meet general guidelines to be financed by the FHA. This is why Oakland fix and flip loans are important to investors otherwise cannot get traditional financing. This type of lending is good for investors with questionable credit histories, or little to no credit. The reason you are able to get financing without “any credit,” is because the lender makes their decisions based off of the property itself, and not necessarily the borrower. The lenders use collateral from investors to fund the fix and flip loans. This is different from traditional mortgages, where a credit score is generally required, along with job history.
The main thing to understand about fix and flip lenders is that the loans are generally for shorter terms. The most common term is one year. It’s critical that you sell the property and repay the loan ASAP. The worst case scenario is that the hard money lender can foreclose on and take over the property – if you don’t repay the loan.
Delancey Street, an Oakland fix and flip lender – is focused on providing loans for projects that will succeed. We focus on projects we think have a good real estate developer behind it. We look at the cost of purchasing the property, the cost of rehab, and the final potential value at which the property can be sold. We take risks on entrepreneurs who we see are driven.