Rehab Fix-Flip loans

[Mary Ann Shlim]

Hi I'm an experienced realestate fix and flip investor. I started looking into fix-flip loans to grow and take our business to the next level. I have good credit. Just shocked to see all these crazy fees associated with these loans. I would like to hear some stories and scenarios of someone's successfully CLOSED loan and how it worked for them. (Please only respond if you closed on a rehab loan) I see a lot of horror stories on here. I know theirs good companies out there that are fair. 

Example:

80k purchase

30k rehab

What are the cost and term of a loan like this for 6 months?

[Ed Matteson]

I've done lots of fix and flips in Chicago with PM and HML. The cost is only high relative to the size of your margin. I think of the money cost as part of my budget, and if it works, I do the deal if it does not fit inside my budget I pass. The real issue here is that the deal is tight. The project that costs $80K plus $30K rehab is in the Cash space for many investors, which is likely why the property is priced at $80k instead of $60K where the finance costs would work. The low-cost deals go bad quickly on an unanticipated roof or furnace, and $30K rehab feels somewhat light. All this said if you need a partner let me know.