For this episode, we have Kim Nguyen joining us again for Mortgage Mondays where we go over the various forms of financing available for a real estate flip project and the benefits and pitfalls of each.
If you’re thinking of doing a fix-and-flip, this is one episode you don’t want to miss!
- Different avenues for fix-and-flip financing:
- Traditional bank financing with open term mortgage
- Private financing – may require less money up front and doesn’t appear on your credit report
- Looking at double-digit interest rates with private lending
- Amount of lending available based on After Repair Value (ARV)
- Banks are not a fan of flippers so private lending may be better route if you’re a regular fix and flipper
- Might be able to stay off bank blacklist if you hold the property for at least a year
- Easier to qualify for private financing vs banks
- Go over what private lenders look for when qualifying a fix-and-flipper
- BRRR Strategy may be a better strategy to utilize with banks
- You can reach Kim at firstname.lastname@example.org For more episodes and content on how to become a better investor, check us out at cwho.ca.