Funding and Flipping
I am about to start my first flip, and am having problems approaching banks for a reno/rehab loan. Do you tend to go in armed with sketches and blueprints? What kind of presentation do you use when trying to get funding for your flips?
blueprints, naw.... are you going to a community bank or a chain branch ? If its a community bank, most likely they will know the area, possibly even the unit number you are after. Take all your numbers... Tell them your realtor.. show comps. Show you have spare money.. get your credit ready.
I don't take anything to my lender anymore... I call him, say "found another on 101 cherry, need pre approval letter". Done.
you'll get the money, and if you dont , they will give you the steps to take to get it in the future. Banks want to give you a loan, some new investors think they have to over impress lenders
If your looking to Flip properties your best bet is to look into private lenders or hard money loans. The banks tend to like funding rehabs and distressed properties because if they have to take them back there's nothing they can do with them. Private lenders have fix and flip programs just have to make sure they service your market.
@Alex Young thank you for this advice, I had always suspected this was the case, but you don't hear this opinion very often. Of course the banks want to lend you money, they NEED to lend you money. We go so far out of our way to get funding from them, we overlook aspects of our own projects.
@Rico D Williams you have hit it on the head there, except that banks tend to have massive amounts of money in reserve so they can certainly do without your interest.
@Rico D Williams
Bring a subject property, comps, taxes, and your numbers. For construction loans get bid prices from contractors for repair costs.