Atlanta, GA Fix & Flipper (8-10) Seeking Private Financing

[Jeff Studer]

Hello BP Members-

I am working with a prominent short term Fix & Flipper based in Atlanta, GA who completes roughly 8-10 projects/month.  He uses Hard Money for some projects but prefers Private Lenders if possible. 

- Typical APR on is 10-11%

- Average Project Time is 1.5-2 Months

- Average Time on the Market Until Sold (via retail/FMLS) is 1.5-2 Months

- Average Capital Needed Per Project is 150K

- Can use Cash or Self Directed IRA and can roll funds over from one project to the next to yield a full year or more of accrued interest

- The property itself is used as collateral and lender is in first lien position.  

- Company utilizes strict purchase guidelines. 20-25% LTV, post rehab, is typical.

- Company has fix/flipped over 600 properties in the last 11 years and will be featured in the upcoming season of a well know "flipping show" on HGTV.

If you are interested in being a sole or partner, private lender for upcoming projects, please contact me so that we can discuss details and answer any questions that you may have.  If you would like a hard copy investment prospectus, just send me your address.

Thank you,

Jeff

[Stephanie P.]

@jeff studer

So the borrower won't put anything down, but wants only 10-12% APR; and they want to use the money on multiple projects so it's not even close to what would be considered a "typical" mortgage where each project stands on its own merits? If they are doing, on average, 60 projects per year, they should have a credit line with a local bank to do whatever they want. Not to be Debbie Downer, but the structure you're trying to create doesn't really benefit the lender and is totally slanted toward the flipper; certainly not a win win for all.

10% down on the purchase, an escrow hold back for the rehab after the work is complete and because the flipper is a "volume" customer, reduced points after the first few deals would be more like a win win for all parties. Lenders have to make money too; after all, without the lender, the project doesn't happen. Biased, I know, but these transactions can't be one way.

Stephanie