FIX AND FLIP FINANCING FOR NEW INVESTORS
Whether you’re new to real estate investing or new to fixing and flipping properties, finding the right financing will insurance maximum profits in your real estate transaction. Some people are just “horse traders” and seem to know how to make a buck whatever they do. Others need to be taught so they attend real estate seminars, learn online or pock other peoples brains that have been successful before.
As you can imagine, there are many possible pitfalls. Can you obtain financing and how expensive will it be? Will you be able to sell the property within a reasonable period of time and will you make money from the sale after expenses? Are there any nightmares with this property that I’m buying that I don’t know about? You could add a lot more “what ifs” to this list.
One thing that applies to all transactions if your level of organization is usually commensurate with the speed and ease of your approval. Because you will be providing possibly tax returns, bank statements, applications, contractor scope of work and other vital information, it can’t be emphasized enough how important that information is legible and organized. Things can be illegible from more things than poor handwriting. You can have unreadable faxes or scans also. If you’re having a hard time reading it, be assured we are also.
Do not less the process intimidate you. You’re just purchasing something that you’re repairing and selling shortly thereafter. Don’t try and make a home run on every deal because it’s not going to happen. The main reason it won’t is there are other people looking at the same property that you’re looking to make a home run from.
Below are the normal forms you will need to submit:
Additional information / documents you will need: (Varies by lender)
- Proof of equity (Documentation varies by lender)
- 1-2 Years Personal Tax Returns (Some lenders do not require)
- Purchase / Sale Agreement
- Corporate / LLC Documents (Most lenders require to close in corporate name)
- Identification (Drivers license / social security card, etc.)
- Closing Attorney Contact
- Verification Of Insurance