Tacoma, WA · Member since 2017 · 2 posts · 0 votes
I have saved a semi large amount of money through being self employed. I am now looking to get out, and am excited at the prospect of REI. I want to do a fix and flip but I do not have enough money to buy a property outright. I want to find a way to finance a property with a large down payment while not having to do any income verification. I have not had any luck finding "owner finance" properties in my area. The research I have done is indicating this will be very hard in a post "subprime mortgage bubble" market. Any advice would be greatly appreciated. Thank you
That's really thinking for people thinking of owner occupying a home.
For flips, you would use private or hard money lenders for short term funding (6-12 months). Lenders in this category are more project based and don't do income or credit checks.
That's really thinking for people thinking of owner occupying a home.
For flips, you would use private or hard money lenders for short term funding (6-12 months). Lenders in this category are more project based and don't do income or credit checks.
Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
9y
Hey Blair I'm in the same situation and have come to learn there are plenty of lenders who do no doc loans which basically means no W2 income verification. They base the deal on the property itself rather than your income. HML's, Commercial Loans, Portfolio Loans, Private Money, etc.
Investor · Phoenix, AZ · Member since 2017 · 583 posts · 919 votes
9y
@Blair Alexander, my wife and I were just in your situation when we left our jobs to start flipping. We were able to fund our first one with cash, but we want to scale up and need financing.
We've had luck with a local lender we found at an AZREIA meeting. They're in a few states, but I don't think Washington is one of them. They are sort of between a private lender and HML. We are doing 80% LTV for scrape/new construction project, with 11% and no points/origination fee.
As far as documents needed, we still had to send over bank statements and tax returns, but no paystubs (we didn't have any). Curious, you should be able to provide tax returns, correct? Just not paystubs?
You may want to rethink a bit and use other people's money to your advantage.
Rather than putting down a large portion of money, put the minimum down, fund the rehab yourself and get paid back through an escrow holdback and then either refinance out at around 75% ltv or sell the property and take the profit.
That way, your funds aren't all tied up in one place and you can still make money.
Those loans are out there. PM me if you need additional information.
Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
9y
Yes, most hard money lenders are looking at the deal and the LTV or LTC and ARV primarily. Most require a certain amount of cash reserves, but they build that into the deal.
You should be just fine considering the cash you have to put into the deal. I have lenders that will go to 90% of purchase and 100% of rehab starting in the 7's with 2-3 points and 6-12 month terms with extensions as needed? PM me and I can share the info.