Fix and Flip Loan Product

[Jalen DeVine]

How do you feel about this financing option? 

Fix and Flip Loan Product:

Financing covers acquisition and rehab 

Cash required: 10% of acquisition and rehab cost

Rates 8.5% to 9.5%

Term 6-12 months

LTV Required 70% as completed value

Fees 2.25%

So it would look something like this...

Purchase $300,000

Rehab $50,000

Loan Amount = $350,000

Cash Required = $35,000

ARV would need to be (350,000 / 70%) = $500,000

Fees = $7,875

6 Months of Interest at 9.5% = $16,625