Real Estate Agent · Jackson Heights, NY · Member since 2017 · 17 posts · 4 votes
Hey everyone.
I am here evaluating a flip and I feel like I can use some guidance.
The property is an REO and listing price is $384,800, needs some love. I haven't seen the home but it needs some love. Not sure about major issues I'll find out when I go see it. I checked out comps in the area and prices are between 510k - 560k. Now, I made a 1 min application with ICG10 Capital. Asking for full funding. I have no money. I looked up their rates and they are as follows:
Start Rate 8%
Start Points 2%
Max LTV 90% + Rehab
I am forever confused with the LTV term. Can someone help me understand? And does this rate sound reasonable? I am just trying to practice my numbers and maybe who knows I can make an offer on this property. I figure I should just take a chance.
Hi @Johanna Castel. I had a hard time understanding this at first also. It means they will give you 90% of the value of the property, so you'll have to put in 10% or you'll have to get the property at 10% less than it's current value. Also the points, you'll have to put money for that. 2% of the purchase price I assume. The 8% rate sounds pretty standard from what I've seen. I started off looking for a no-money down solution as well but all hard money lenders seem to want something, which is understandable especially when it's our first time flipping. Hope this clears it up a bit and that it works out for you!