Fix and Flip Loans


Why Get A Fix And Flip Loan?

Fix-and-flip loans are short-term financial solutions designed for real estate investors. These loans provide the capital needed to purchase and enhance a property, aiming for a profitable sale or refinancing opportunity. Upgrades can vary from minor touch-ups to a full-scale home rebuild. The initial funding is determined by the property's current value and a budget for renovations, which will be allocated through construction installments.

Standard Loan Terms

  • Max Loan Amount: $5,000,000 (higher loan amount can be approved)
  • Max LTC/ARV (Loan to Cost / After Repaired Value):
    • Experienced Investors: The Lesser of 85% LTC or 70% ARV.
    • Inexperienced Investors: The Lesser of 80% LTC or 65% ARV.
  • Rates: Starting at 9.99%
  • Term of loan: 6-24 months
  • Payments: Interest Only with balloon at maturity.
  • Prepayment penalty: None
  • Interest type: Non-Dutch

Standard Closing Costs

  • Origination Fee: 2-3%
  • Underwriting Fee: $1,500
  • Draw Fee (for future draws on the loan): $350
  • Legal: $750 – $1,500
  • Appraisal Fee: $350-$1500
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Property Types

  • Condominiums
  • Single-family residences
  • Townhouse
  • 2 to 4 units
  • Multifamily
  • Other property types case by case

Standard Closing Time

  • The Usual Time to Close is 10-15 days.

Lendai is a fintech lender financing US Real Estate Properties For Foreign Investors. Once the title work, appraisal and feasibility report are ready, we will be too!

More Services

US Entity Formation Services

Empowering anyone in the world to turn their real estate dream idea into their US business reality. Forming your US entity in a few simple steps.

Insurance Services

Lendai has partnered with insurance experts to offer insurance policies catered specifically to the needs of foreign investors.

Lending in the Following US States

  California
 Nevada
Arizona
New Mexico
  Oklahoma
 Vermont
Maine

New Hampshire

Massachusetts
Rhode Island
Connecticut
New Jersey
Delaware
Maryland
Virginia
West Virginia
Kentucky
Mississippi
Louisiana
Arkansas
Iowa
South Dakota
Nebraska
Kansas
Colorado

Wyoming

Montana
North Dakota
Minnesota
Idaho
Oregon
Washington
Utah
Alaska
Hawaii

Alaska

Arkansas

Colorado

Connecticut

Delaware

Hawaii

Idaho

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Mississippi

Montana

Nebraska

New Hampshire

New Jersey

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Oklahoma

Oregon

Rhode Island

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South Carolina

South Dakota

Utah

Virginia

Washington

West Virginia

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Wisconsin

Wyoming

Maximizing Returns on Fix and Flips: Financing Options for International Investors

There's one real estate investment strategy that stands out for its dynamic nature and the potential it presents for quick, rewarding returns: fix and flips.
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FAQ

Fix and Flip Loans are specialized financing options designed to support real estate investors who wish to purchase properties, renovate them, and then sell them at a profit, all within a short time frame—typically within a year. These loans are particularly suited for projects that need quick funding to capitalize on market opportunities or where the property condition might not qualify for traditional financing due to disrepair or other issues.

Fix and flip loans can be used for various types of properties including single-family homes, multi-unit properties, condominiums, townhouses and other property types, case by case.

Access to Quick Financing: One of the main advantages is the speed of financing. Fix and Flip Loans can provide foreign investors with quick access to the capital needed to purchase and renovate properties. This is crucial in competitive real estate markets where being able to close a deal quickly can be a significant advantage.

Opportunity for High ROI: These loans enable investors to leverage their capital to enter the US real estate market, potentially earning a high return on investment (ROI) through the flipping process. By purchasing underpriced or distressed properties, improving them, and selling them at market value, foreign investors can realize substantial profits.

Flexibility in Property Choice: Fix and Flip Loans offer the flexibility to invest in a variety of properties that may not qualify for traditional mortgages due to their condition. This opens up a broader market segment for foreign investors, including distressed properties that can be acquired at lower prices and renovated for substantial gains.

Bridging Financing Gaps: For foreign investors facing challenges in securing traditional financing due to lack of US credit history or residency status, Fix and Flip Loans can serve as a valuable financing solution. These loans often rely more on the property’s potential value after renovation rather than the borrower’s credit history, making them more accessible to international investors.

Market Entry and Experience: They provide an entry point into the US real estate market for foreign investors, allowing them to build a portfolio and gain market experience. Successfully flipping properties can also help build a track record, potentially easing the path to securing more traditional forms of financing in the future.

 

Network Building: Engaging in fix and flip projects can help foreign investors establish relationships with local real estate agents, contractors, and other investors, which can be invaluable for future investments and navigating the complexities of the US real estate market.

Ready to start financing your investment?

Start maximizing your Fix and Flip profits today. Contact our loan specialists to explore your financing options.