Fix & FlipLoan Program
Fix & Flip Line of Credit
BN Loans offers a Fix & Flip Line of Credit to help experienced investors gain quick access to money as they acquire properties. This product is also available to first-time investors with no experience in real estate.
Benefits of Fix & Flip
This line of credit makes it easy to buy properties with financing for up to 90 percent of the costs of acquisition. You can also have all the renovation expenses paid and receive financing up to 75 percent of the value after repairs are made.
Our Fix & Flip Line of Credit allows you to prepay but provides a term up to 12 months for those bigger projects. Your application is approved quickly and only requires a minimum of 600 FICO score.
Fix & Flip properties have become a popular way for real estate investors to make a solid living. They need the funds to purchase a property and renovate it, so they can sell it as a property. Shrewd investors will be able to recognize when they are getting a great deal. Many times, a property can be bought at a discount because it has fallen into disrepair because of age or being abandoned.
Investors who follow this method of making money in real estate often need cash to buy the property and funding to pay for the renovations. Instead of doing the work themselves, they may hire contractors to take care of renovations. This allows them to focus on buying other properties and selling those that have been renovated.
Profit is made with the after-repair value, which is the market value of the property once all renovations and repairs have been completed. It is the difference in what you can sell the property for and the cost of buying and repairing it.
There are always people selling older, outdated, or neglected properties and buyers who want to find a move-in ready home. The person in the middle is the investor with a fix & flip investment. They purchase the property from a seller to get it off their hands, invest money into fixing up the property, then sell it to a buyer who doesn’t want the hassle of making those renovations.
Because it’s a win-win scenario, fix & flip investments are popular and offer a sound investment for people in the real estate industry. The challenge is in gaining access to funding to make the purchase and the repairs. This is where BN Loans comes in.
Why Choose a Line of Credit?
There are several things that make a Fix & Flip Line of Credit attractive to investors. You are approved for a specific amount of money that covers you until you sell the property. You don’t need to get approval on every single purchase or invoice.
These products usually require decent credit, which means you get a good interest rate. You pay less on the loan, which makes for a bigger profit when you sell. You don’t have to reapply because a line of credit is continual up to the maximum amount approved. When you finish with one property and pay off your line, you can borrow immediately for your next project.
Find out more about the Fix & Flip Line of Credit at BN Loans.