Our fix-and-flip loan can be used to acquire and rehab the property,
then, subject to undewriting and qualification, the loan may be
eligible for refinance into our 3- or 5-year loan once the property
has been satisfactorily completed. Or, you may refinance into
outside, permanent financing if qualified to do so.
Yes. That is not to say that we will approve all double closings, as we will review and underwrite each deal on a case-by-case basis. But, we have approved and completed many double closing transactions.
Yes. We allow borrowers to complete work to the properties themselves in many cases. However, if the project requires significant construction, like an addition of “popping the top” or has structural issues, we would likely require a licensed contractor in those instances.
We obtain an “as if repaired” appraised value from one of our approved appraisers. So,
prior to you closing on the property, we have you complete our
budget form and questionnaire, to show what you will be doing to the
property to rehab it and the planned cost of those repairs. The
appraiser then reviews the budget and appraises the property as if
the work has been completed based on other recent sold comparables
in the neighborhood or surrounding areas. While the appraisal is
completed for us as the lender and is for our lending purposes, we
do share the information and appraisal with you.
Yes, as the lender, we
require hazard insurance for a one-year period with vacancy and
vandalism coverage in an amount that covers the loan amount, at a
minimum. You may also wish to consider liability insurance.