Private Money Fix & Flip Funding Formula
There are many lenders in the private sector who fund Fix and Flip type transactions. Each has different guidelines. The following is an example of the guidelines my private investors look for in a fix and flip transactions. Please call me with any questions that pertain to your specific transaction.
Purchase Price: $500,000
Rehab Costs: $100,000
Total Cost of acquisition: $600,000
Estimated completed value $1,000,000
Borrower Cash Required up front in transaction: $100,000 (20% of Purchase Price of $500,000)
Max loan $650,000 (65% of final completed value. Note this could include 100% of rehab costs.)
Total cost: $600,000
Borrower Cash in project: $100,000
Private Loan $500,000 **
** excluding loan fees and transaction costs which will vary, case by case. Note this number cannot exceed 65% of Final Completed Value.
Borrower must have proven experience with fix and flip transactions
Commercial Bank loans are less expensive and may go to higher LTV's. Try them first.
We are considered more of a lender of last resort, and can close transactions quickly within a few days (in some cases) and are far more lenient when underwriting a borrower's ability to repay.
We are strictly lenders and don’t consider joint ventures.
I’d love to discuss any questions you might have. We’re always interested in establishing long term relationships with solid clients, based on experience, honesty, and profitability.
I look forward to hearing from you:
Private Money Affiliates