Fix&Flip into a Long Term Loan
My husband and I are looking to expand into the multifamily (5+ units) realm of investing utilizing the BRRRR strategy. Has anyone successfully used a fix and flip loan then refinanced into a long term loan? We've searched for hard money lenders and only a few had loan products for purchase plus rehab then refinance. In addition, most required at least 20% down. I've noticed most fix and flip loans would loan up to 90% so would it be feasible to use a fix and flip loan then refinance with another lender to avoid having to put more money down? Thanks for any replies in advance.
Most Popular Reply
@Ashley Wynn I typically use local banks for purchase + Rehab funds. Ask for the commercial lending department. Usually these loans convert into a regular mortgage at the end of the rehab without having to do another refinance.
Typical terms I get are 25% down of the purchase,100% rehab, 0 points, 20 year term. 5% fixed for the first 5 years and then floats with prime after that.
Good luck!
- Tom