4 Keys to Look for in Fix and Flip Loans
Flipping properties can be a lucrative investment opportunity, and the process creates positive, memorable experiences. Financing such pricey undertakings, however, can pose challenges.
Too often investors are forced to choose between big banks, hard money lenders, and private investors. For many people, many of these options come with by outrageous rates, hidden fees, last-minute tricks, and unprofessional interactions.
To avoid getting caught in a bad loan, or even worse, getting caught without a loan on closing day, a Fix and Flip investor should look for loans that offer clear terms with competitive rates, professional service, expertise, and a commitment to upright conduct. Let’s break down these keys in more detail.
Most people seeking loans for flipping houses can’t pay cash for their investments, at least not for long. They either run out of friends or family members willing to act as private investors, or they reach the point where they want better leverage on their cash. As a result, these entrepreneurs have to turn to either big banks hard money lenders, or direct lenders.
Sometimes, these are not ideal choices. Big banks may not approve fix and flip loan applications, and even if they do the turnaround time is much slower than most real estate investors need to capitalize on the hot deal. On the other hand, some non-bank lenders have a reputation for charging higher rates and hiding unexpected fees in a loan, thus eating away at the investor’s profit margins.
Lima One Capital is different. We stand on a policy of no junk fees and clearly display standard rates for our FixNFlip, Construction, Cash Out, and Bridge Plus loans. Whether the investor wants to renovate and sell a property, gain capital for construction costs, refinance, or leverage his space, Lima One’s programs offer something for everyone, with transparent pricing and competitive rates among direct lenders.
Plus, experienced real estate investors are rewarded for their success as interest rates and origination fees decrease with each completed investment project. Good experience, just like a good credit score, can lower your rates.
Investors should look for the best rates they can get, but also consider the total fee structure of a loan. A company like Lima One Capital that offers transparent pricing, no junk fees, and competitive rates provides the best Fix and Flip financing option.
A new investor, or one who has only a few successful fix and flip projects under his or her belt, may feel intimidated by the process of applying for a fix and flip loan. That feeling is exacerbated when they move from traditional financing to a direct lender or hard money lender. Getting stuck with an outsourced, unreachable, or unprofessional agent will add anxiety and complications to your fix and flip projects.
Real estate investors should look for fix and flip loan companies that communicate openly and have nothing to hide. You want sales agents who pick up the phone when you call and answer your questions quickly, and underwriting analysts who are clear and direct about your next step.
That’s what Lima One Capital provides. Our team is committed to facilitating solutions and delivering excellence at every opportunity. Plus, you can access our client portal once your application is in process, so you can see the status at any time and easily upload and view important documents and payment information.
We also provide answers to frequently asked questions, helpful checklists, fix and flip tips, and informational videos on our website and blog. And our servicing and construction teams will work with you post-closing to ensure that your product succeeds.
Not every direct lender will deliver professional service from the first contact to the loan maturity. Lima One Capital will.
Another major component real estate investors should look for in fix and flip loans is lender knowledge. They want the security of knowing that a lender knows what property rehab investors need in order to succeed, and that the lender will offer products that fit those needs and will help investors choose the product right for each situation.
Lima One Capital is the nation’s premier lender for real estate investors, and the company has developed a product suite designed with the fix and flip investor in mind. As the leader in fix and flip loan volume nationwide, Lima One Capital has the experience and expertise to help real estate investors get the financing they need to succeed.
Want proof? Customer success stories prove Lima One borrowers have benefitted from fair terms and advantageous advice. Click through to see how investors like you benefited from their projects, thanks in part to how Lima One helped them bypass difficulties, save on fees, and close quickly.
The studious property flipper should also consider the conduct of a lender as an important factor when evaluating potential fix and flip loan providers. No one wants to end up saddled with a crooked lending company that promises lower rates but puts the screws to borrowers by remorselessly causing delays and tacking on hidden fees.
Lima One Capital ensures clients feel justly cared for by consistently upholding its core values:
- Our core business is providing liquidity to real estate investors while mitigating, managing, and profiting from risk.
- We hire great and diverse people who share the company’s vision based on their core values, work ethic, and core strengths—not because of their industry experience.
- We underwrite each potential new loan to ensure a winning outcome for our clients, investors, and company.
- We provide direct and honest feedback at all times to our clients, investors, service providers, and team members.
- We always display the rates, terms, & fees for our loans, and we hold firm to our policy of no hidden costs to our clients.
- We continuously invest in technology and infrastructure in order to improve the client experience and operational efficiency.
- We provide amazing customer service and add true value for our clients, separating us from being a commodity.
Upstanding ethics are also reflected in our company’s leadership and its military service. Rankin Blair, Managing Director of Operations, currently serves in the United States Army Reserve. John Thompson, Chief Operating Officer, joined the Lima One Capital team after retiring from 21 years of active duty as a member of the US Marine Corps which decorated him for valor in combat, and Chairman and Founder John Warren acted as an infantry officer in the US Marine Corps.
These values make a difference in the way Lima One Capital does business with borrowers like you, and the transparency they provide eliminate risk and give you a clear view on what kind of deal you get with a Lima One loan.
Bonus: Lender Growth
The size of a lender may not directly contribute to your fix and flip loan, but it’s worth considering. Can a smaller local company guarantee that capital will be available when it’s time to close? Will a smaller company have the experience to help you close quickly and with certainty even if a unique problem arises?
Lima One Capital’s growth is shown by awards like being South Carolina’s fastest growing company, and by the fact that the company has rapidly expanded to offer loans in more than 40 states and the District of Columbia. You can find
Such steady growth sends a message to clients that Lima One Capital is both reliable and efficient. The savvy real estate investor will take a lender’s overall growth into account when he decides whether or not to apply for a fix and flip loan, especially as they build an investment portfolio or look to leverage a unique real estate investment opportunity.
The avid real estate investor has a lot on his plate as he approaches the challenge of choosing a lender. In order to succeed, the investor has to find a fix and flip loan that provides necessary financing without adding unwanted fees, closing delays, or unnecessary hassles.
Lima One Capital provides a great option for investors looking for equitable terms, professional service, expertise, and upright conduct. So the discerning investor who chooses to contact Lima One or fill out a loan application has taken a great first step on the path to profitability and success.