Apex Capital Solutions fix and flip loan programs are tailored to provide real estate investors with quick access to funding. Like all our direct private money lending programs we ensure a hassle free and reliable loan process.
Fix and Flip loans are acquired by real estate investors to purchase a cheap or rundown house and fix it up to sell it again for a profit. House flipping investors interested in renovation buy low and sell high, on a fast and furious timeline and budget.
Throughout the underwriting stage of the fix and flip loan process, Apex Capital helps investors borrow up to 90% of the purchase price, 100% of the rehab costs, and 85% ARV with experienced real estate investors. Our average closing time for the underwriting stage is an average of 14-18 days.
To acquire a Fix and Flip Loan, an investor must prove that the subject property is profitable. Investors with a house flipping business plan may opt for these types of loans because they require less underwriting than traditional loans. Generally, there is no penalty for paying off a Fix and Flip Loan early, so investors can move on to other dreams and other properties in which to invest.
Fix&Flip loans are short-term loans that investors can use to cover the cost of purchasing a property as well as the cost of repairs and renovations. These types of loans are like bridge loans generally used in the short-term until a more permanent financing solution is put in place.
These short-term loans, are a lot different than a regular mortgage loan – it’s designed to help the investor cover the upfront costs of buying and renovating a property. These improvements range from minor renovations to a complete reconstruction of an existing property.
One of the biggest key differences of the fix and flip loan is the use of collateral. Lenders generally consider the property itself as collateral and don’t spend a lot of time looking at the borrower’s creditworthiness to loan the funds. All the value is in the property itself.
Fix and flip loans are very short term. Most range from as short as six months up to three years. Flippers who intend to use these loans usually intend to pay off the loan with the profits from the sale of the property. The sooner they can improve the property and sell it, the sooner they can pay off the loan.
The demand for fix-and-flip loans generally stems from capital inefficiencies in the current lending marketplace. These relatively short-term loans create opportunities for investments that potentially provide attractive yields for investors. In addition to this, fix-and-flip loans have other benefits:
Through Apex Capital Solutions, the process of obtaining a fix and flip loan is a thorough but quick process. After finding the desired property, a prospective borrower will speak with a member of our team and pre-qualify for financing. Once the underwriting criterion has been met, Apex Capital will design an outline of the terms and overview of the loan.
There are several easy steps to acquire a Fix and Flip Loan with our dedicated team of loan officers that have experience working with house flipping investors.
In the beginning pre-approval stage, we will evaluate whether the real estate flipping loan scenario fits our lending criteria, assessing where the flip property is located, what the prospective price is, the rehab, and proof of funds. Additionally, We will also evaluate the borrower information, such as previous experience, credit, and financial background.
During the loan processing and underwriting stage, the loan processor analyzes both the investment property’s value and the borrower’s banking and buying history. If the numbers work, the prospective house flipping investors will move on to the funding stage.
When the borrower reaches the funding stage, it consists of paperwork and promissory notes to sign before the funds are released. After all elements are completed to the underwriter and closing agent’s satisfaction, the allocation of funds will be disbursed to the seller of the property or directly to the borrower.
Throughout this period, an inspector will confirm things are done to code. Once all parties have approved the Draw Schedule, each payment installation will be transferred to the borrower or entity’s bank account after completion of each inspection. Transferring of funds to the designated bank account typically occurs 2-3 days after the draw request.