Updated over 15 years ago on . Most recent reply
Best Choice?!
I am looking into Loan financing for my first flip. Can anyone tell me the best loan option for flipping? I've heard that banks and certain mortgage companies want you to keep the house for a period of time, a couple of years, and would more than likely not loan me anyone more money if I sell before then. Is this true? What is the best option for buying, renovating and selling all within 6 months or so? I want to keep a good relationship with the lender.
Most Popular Reply
If you have decent credit and can find a good deal, a local bank that lends it's own money (portfolio lender) may be willing to fund up to 70% of the purchase plus rehab costs. You'll have to bring the other 30-40% to the table, but the terms are generally pretty good -- typically 1 year interest-only with 1 or fewer points and 8% or better interest rate.
Start visiting the really small (fewer than 3 branches), local banks in your area, and ask to speak with the head of commercial investing...