For a newbie with good income and great credit, what lenders are best? I tried Wells where my mortgage is but that want to talk me into a small line of credit. I don't want to go everywhere racking up inquiries I just need someone to give me a good program for getting started in the flipping biz.
Hello Scott. I am new as well so I could be wrong but you may want to seek out Hard Money for flips rather than conventional lending. Just my two cents
Depends on if you want to flip or buy and hold.
I originally used a smaller local bank for flipping. Basically they would set up a line of credit using the subject property as collateral.
Quick closing, Interest rates were 6%, 15% down payment, interest only 1yr balloon with semi annual payments. Think they charged a 1% origination fee. Sometimes had to have appraisal, and lenders title policy.
Now I have a pretty decent size Unsecured Line of Credit with another small bank. It makes life even easier as I don't have to hassle with a lender at all. No origination, appraisal, no down payment, or lenders title policy. Interest is around 5% paid monthly. It's basically a big credit card with a great interest rate.
If you want to buy and hold you need to find a lender that will do fixed rate fannie mae financing for investment properties. A lot of banks don't offer these loans and will push 5yr balloon loans which are a lot less desirable to me.
Welcome. Business line of credit is a good option. Time to build the foundation below.
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Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.
Consider checking out HUD homes for small multi's owner occupied gets first crack.
You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over
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