Fix and Flip Loans

[Sharaya Rutherford]

Hello all! I'm getting ready to start flipping houses and I have a few newb questions for you all.

I've been looking at using either a line of credit or a fix and flip loan. So far, I'm leaning more toward the fix and flip loan.

I've been talking to LendingOne because I saw them on the list of HML in my area (Augusta, GA) on this site. I'm in the middle of filling out the pre-approval application and there's a whole section that asks about my "entity" which makes me think they only loan to people with experience. Nevertheless, I'm going to give them a try anyway. With that being said....

What kind of questions should I be asking them? I'm new but I don't want to be scammed.

Do you know anything about this company? Am I relatively safe working with them.

If not, or if you don't know about them, are there any companies you would recommend?

Thank you for your time!

[Nnabuenyi Anigbogu]

Key thing to watch out for in HML's are upfront fees. The only fee you should be paying upfront should be an appraisal fee (200-400 typically in my area) and maybe a credit check fee ($50?). Every other fee especially points are paid at the closing table.

Since you are in Georgia you should talk to @Darrell Shepherd who is a lender in that area. I have close a loan with him in the last 3 months.