Does anyone have questions regarding flipper financing?

3 Replies

New or experienced flippers and rehab investors post any questions or scenarios you may have regarding Fix and Flip properties or rehab.   I am here to answer them.

Standing by. 

@Stephan Prescher what's the best rates you've seen for fix and flip financing...hard money or otherwise? Right now my wife and I are seeing 9.5% and 2 points but I can't help but think there are better options out there. I know private money is typically where the best rates are found as you can agree on anything but are there banks offering commercial loan rates on fix and flips? What are your rates? 

Originally posted by @Ryan E. :

@Stephan Prescher what's the best rates you've seen for fix and flip financing...hard money or otherwise? Right now my wife and I are seeing 9.5% and 2 points but I can't help but think there are better options out there. I know private money is typically where the best rates are found as you can agree on anything but are there banks offering commercial loan rates on fix and flips? What are your rates? 

For a traditional HML those are good rates. We've gotten purchase and construction loans (combined) from a small credit union at 80% of purchase and 100% of construction at 4.5%, no points, but that particular bank wised-up a bit and does 80% of total project cost now. We also had a relationship with that particular bank.

That said, at one point we had 21 projects going at once and most banks will only lend on a few at a time, at least with us, so to get a deal done we've had to use bridge or HML. We've paid as much as 12% and 3 points.

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