The lender does charge the flipper 4 points upfront, and the note represents 55% of the property’s ARV, so I’m not too worried about needing to foreclose if it comes to that.The lender uses his own capital for initial funding and then sells off the notes after that.

This property is being acquired at $79K per unit, a sharp contrast to comparable apartments in the area selling for ~$140K per unit.

And it can work really well for you as long as you pay attention to the statute requirements.In order to defer all tax you are selling investment real estate and buying investment real estate of at least the same value you sold. 

This is a very common issue that it seems a lot of LO's do not understand so they push borrower's to higher priced DSCR loans. or, they are not even licensed to sell anything else.

I only have 1 property under my belt and am currently house hacking my SFH. 

If she went to buy a house and applied for a mortgage, I think the lender would say the same thing aka you don't qualify until you get this removed from the credit report.

Just bought 3 houses last week from a builder. 

I'd level up with a BRRRR, live-in flip, or house-hack before jumping into a challenging renovation.

So in my mind it would be best used as a last move into a REIT you never sell.  

Whether you’re considering house hacking, turnkey, or multifamily, there’s so much opportunity to explore.Feel free to reach out if you’d like to connect or bounce around ideas.