What would the best financing option be for me?

Question

I am going to do rehabbing/flipping in addition to SFH rentals. I am a business owner that looks good on paper. High income, good credit score, low debt, and good cash reserves and ability to be 20% down if needed.

I want to look at properties with a serious intent to buy somewhere in the 35-90K range. But I feel like I cant make offers because I am not financed.

Where should I look for money? Banks or hard money?

I would love to be approved for a set amount then look for houses knowing I I have the cash to buy them. But does it work like that? Or do I have to find the house first then try and get financed based on the ARV.

Loan terms would be 2-6 months. Thanks

Scott W. · Answer

get approved 1st; hardest part right now is getting the financing in order.

Adam Craig · Answer

I didnt realize banks did rehab loans or lines of credit for flipping these days. I will look into it.

What are the major factors in hard money loans? - annual income/credit report/ assets/ the property ect...  What I am getting at is, can I get a set amount of hard money approved backed with my credit and income - and then go look at properties. Or do I need to find the property first, then approach the hard money lender.

Bill Gulley · Answer

I suggest you look for a line of credit with a bank, especially if you have other collateral. Banks really don't want to make short term flip loans, but will, so start there. Go to your bank and get qualified and see what they will do.

You are not restricted as many are with money, good credit and income, si consider more of a plan, buy, rehab, sell and finance some deals yourself with a wrap, that means staying on the loan. You'll need a mortgage broker to carry back loans yourself..... you get an interest rate on your money, interest over ride on the loan, down payment and you get paid off at closing.....it's an option.

You could go to a hml type, be prepaired to be fleeced in that price range, it's lost profits, but if it makes a deal work, you make more than the alternative, go see them....soe areas they aren't so bad.

If you don't have experience, you might find some decent deals that need lipstick and the grass mowed and slowly get into more difficult projects.

DOn't forget mortgage brokers and credit unions, they may make shorter tem loans for what you want....good luck