A HM Lender that sounds promising, Even for Newbies like Me!

[Steven Harris]

What's your take on Stratton Equities?

After coming from a meeting with a wholesale realty company and discussing HM loans, my Lyft driver (yea, I don't drive either) told me about Stratton. I've had a few conversations with them and they seem like a great lender for newbies like me. Rather than having to pay almost 50% on a property as I was told I'd have to by the other guys, Stratton would lend me up to 90% of the cost to buy. None of the three reps I spoke with said I'd have to come to the table with anything close to 50% regardless of my lack of RE investing experience. Again, this *sounds* promising. I'll follow up, for those who're following my journey :^)

FIX-N-FLIP LOANS
Starting at 7.25%

• Up to 90% of Property Purchase Amount

• 100% Financing on Rehab Costs, 75% ARV

• No Interest Charged on Unused Rehab Funds

• 12-18 Month Interest Only (No Pre-payment Penalty)

• Also Available: Multifamily Bridge Loans up to $5M

[Joe Splitrock]

Ask them what they charge for upfront fees. Sometimes they charge upfront for loan fees or origination. It appears these loans do go through a vetting process based on the borrower. It says on their website:

Fix & Flip Loans are usually sold on the secondary market and goes through a full underwriting with tighter guidelines. For instance, depending on the lender, Fix & Flip loans have a minimum FICO requirement. Additionally, the borrower can’t have late payments, foreclosure, judgments, or bankruptcy on their credit for 24-36 months. 

This could definitely go a good option as long as you calculate the fees and carrying costs into your numbers. Carrying costs can be a killer on profits.