Fix to rent financing.

[Tim Sipowicz]

Hello everybody, I am a newer investor and my agent sent me a 4 unit in a C class neighborhood for 300k. It stated at the end of the description that fix to rent financing is available for this property. Has anyone ever used this type of financing and could elaborate a bit more? I did some research and it’s a rehab loan for the most part it seems so I’m curious if it’s just another term for hard money lending due to the interest only payments. Also stated the loan could be rolled into a conventional 30 year loan. Any insight would be very helpful. Thanks 

[Crystal Smith]

Originally posted by @Tim Sipowicz:

Hello everybody, I am a newer investor and my agent sent me a 4 unit in a C class neighborhood for 300k. It stated at the end of the description that fix to rent financing is available for this property. Has anyone ever used this type of financing and could elaborate a bit more? I did some research and it’s a rehab loan for the most part it seems so I’m curious if it’s just another term for hard money lending due to the interest only payments. Also stated the loan could be rolled into a conventional 30 year loan. Any insight would be very helpful. Thanks 

There's nothing shady about it. Many investors & realtors will have relationships with lenders such as Renovo who will provide interest only loans to purchase and renovate a property, after which you can convert the loan to a conventional. In some cases the lender may actually own the property because they either foreclosed on it or took it back as a Deed in Lieu of Foreclosure, which means they are familiar w/ the property; And may be willing to lend against the same property again for the right buyer. Equivalent to seller financing