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Updated about 5 years ago,

User Stats

19
Posts
2
Votes
Mark Miller
  • Mobile, AL
2
Votes |
19
Posts

Fix n Flip loan questions

Mark Miller
  • Mobile, AL
Posted

So, honestly, I want to get into flipping. I am new. Very new. I know nothing about home repairs, and honestly, I plan to pay a contractor to do all that, simply because I value my time. I was looking at financing options, because obviously, I need to know everything. Lima One is who I was primarily looking at, but I am still looking around. It looks like 90% of current value + rehab and 75% of ARV, which seems basic, but that brings me to question number 1. obviously, the loan term is 13 months. Are these loans generally interest only with a balloon payment at the end? I have made the assumption that it is better to over estimate rehab costs, than to under estimate them, despite paying interest on them. If that is wrong, let me know, because again, I know very little about home repairs. I was also wondering if anyone knows if any lenders can provide you with trusted contractors, or if I should just ask people at my local REI club?

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