Fix and Flip Lender Los Angeles California

David Di NataleFix and Flip Loan

Los Angeles Fix & Flip Lender

Fix and Flip Lender Los Angeles CA

Low Rates & Quick Closings on Fix & Flip loans in Los Angeles – 6.99%

 

Do you want to invest in fix and flip projects in Los Angeles, but don’t have the time to wait for a conventional loan?

Conventional loans can take weeks or even months to get approved, which is not ideal when you’re trying to get a property under contract quickly.

A fix and flip loan can be pre-approved in as little as 24 hours so you can start renovating your project immediately. Plus, our competitive rates make it easy for you to turn a profit on your investment!

A fix and flip loan is specifically designed for investors who want to buy and renovate a property as quickly as possible so they can sell it at a profit. With our fast approval process, you could have the cash you need in your hands in just days.

Fix and Flip Loans on properties in Los Angeles California Provide Investors With:

  • Competitive interest rates, starting at 6.99%+
  • Up to 80% loan-to-value ratio (LTV) or 90% LTC (the lower of the two)
  • A Quick and Easy loan application process
  • No required income documentation such as tax returns or W2 forms
  • Excellent Service
  • Fast Closings in 1-3 weeks (versus 45-60 days with a bank)
  • Minimum loan amount of $100,000 with a maximum loan amount of $10,000,000+
  • No Minimum FICO score
  • No Debt Service Requirement

APPLY NOW FOR FIX & FLIP LOAN

PLEASE FIND THE FOLLOWING YOUTUBE VIDEO ON WHY A FIX AND FLIP LENDER IN LOS ANGELES MAY BE THE RIGHT FIT FOR YOU:  

WHAT IS A FIX AND FLIP LOAN?

A fix and flip loan for purchasing or refinancing Los Angeles investment properties provides real estate investors with the capital needed to purchase or refinance a property which needs renovation or rehab in order to be sold or stabilized.

To qualify as a flip, the investment property must an investment property or spec home which is going to be sold or rented out upon completion and not occupied as a primary residence.

Investors typically buy cheap, run-down, and distressed properties and renovate them quickly to resell at a much higher price, this is commonly known as ‘house flipping.’

HOW DOES A FIX AND FLIP LOAN DIFFER FROM A CONVENTIONAL MORTGAGE?

You are probably aware that a traditional mortgage can be used to finance a single property – your primary residence. On the other hand, fix and flip loans are used to purchase a real estate investment property in order to renovate it and quickly sell it for a profit.

While they were traditionally used to purchase commercial properties, fix and flip property loans are now commonly sourced to buy residential rental properties in order to generate a quick profit for investors. While a conventional loan program focuses heavily on personal income and credit scores (chattel mortgages), fix & flip loan takes into account the potential for significant return on investment in a short period of time after making the necessary capital improvements to the property to sell it.

There are some crucial differences between conventional mortgage loans offered through banks and investment property loans, and these can be particularly challenging for rental investors obtaining financing from a local bank versus a private lender such as Capital Funding Financial.

4 KEY DIFFERENCES IN FIX AND FLIP LOANS IN LOS ANGELES:

PROPERTY TYPE

To qualify for Fix and Flip, your chosen real estate investment property must fit into qualifying categories: single-family properties, multifamily units, townhouses, planned unit developments, or condominiums. Commercial Office, Retail, Industrial, and Multifamily will fit on Capital Funding Financials’ Commercial Program but not as an asset type on the SFR Fix and Flip Program.

When obtaining a traditional mortgage, the condition of the property is a key consideration and will help to determine the value and acceptance of the loan. The as-is condition must be deemed suitable to justify the mortgage. With fix and flip loans, the condition of the property is typically bad so hard money lenders focus more on the after-repair value of the property versus the “as is” value.

INTEREST RATES

Interest rates and fees are typically higher on an investment property given investment properties are perceived to have more risk due to the speculation. However the gap between conventional and rental investment loan rates has shrunk in the last year as capital markets have opened up in their appetite in purchasing fix and flip bridge loans.

Fix and flip loans are designed to offer a short-term finance solution, lasting around 12 t0 24 months, with investors making interest-only payments each month. Traditional mortgages, on the other hand, are long-term loans typically amortized over a term of between 15 and 30 years.

DOWN PAYMENT

Conventional Lenders or Banks often require a larger down payment requirement to secure an investment property loan.

When flipping houses, speed is the most important thing! Therefore, the process of applying for, and receiving, a fix and flip loan must be efficient. For this reason, fix and flip loans can be processed in as little as 7 to 10 business days. Traditional bank loans can take between 45 and 60 business days to close. This is mainly due to stringent regulations, involving detailed credit checks and examination of the property’s condition. While not an issue when purchasing your primary residence, this lengthy process would be unsuitable for fix and flip financing which makes

CREDIT

High Credit Score Requirements along with a low debt to income ratio is required for conventional bank rental loans.

While a conventional home loan is heavily determined by an investor’s individual credit history and debt to income ratio, this is not deemed as important when it comes to fix and flip financing, and other hard money loans. A fix and flip lender may ask for a minimum credit score, but they will be more interested in financial projections, taking into account the projected value of the renovated property. If you have a proven track record with experience in the flipping business, this will also be taken into consideration in your loan approval. After all, when it comes to flipping houses, a successful track record counts for a lot!

WHAT TYPE OF PROPERTIES IN LOS ANGELES CAN FIX AND FLIP LOANS BE USED FOR?

Fix and flip loans can be used to finance property types such as single-family homes, duplexes, triplexes, quadplexes, multifamily units, townhouses, planned unit developments, and condominiums.

Single-family homes are defined as properties designed to house one family aka one housing unit. Whereas a multifamily home is a residential property containing more than one family. Capital Funding Financials’ rental loans do qualify 1–4-unit residential buildings as “Single-family.”

WHY CHOOSE A PRIVATE MONEY LENDER FOR A FIX AND FLIP PROPERTY IN LOS ANGELES CALIFORNIA?

SPEED, RELIABILITY, HIGH LEVERAGE, AND NO MINIMUM CREDIT REQUIREMENT!

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HOW DOES THE FIX AND FLIP LOAN APPLICATION PROCESS WORK?

We offer a convenient loan application process that is available through our loan portal which can be e-signed via DocuSign. Upon receipt of the rental loan application, we will schedule a follow-up call to go through the particular facts regarding your loan submission.

During the application process we will ask questions about your experience with rental properties and your estimated credit & income. However, we will not require any formal tax returns or W2’s in qualifying you for the loan.

WHAT LOAN DOCUMENTATION IS NEEDED DURING THE LOAN PROCESS?

For Purchase Transactions in Los Angeles:

  • Loan Application & Disclosures
  • Renovation Budget and Renovation Package with Contractor Information
  • Driver’s License or Passport (ITIN number if you are a Foreign National)
  • Purchase Agreement and any addendum(s)
  • Proof of Earnest Money Deposit with check or wire receipt
  • 2 Months Bank Statements to show the necessary cash to close and liquidity
  • Entity Docs – Articles of organization, Operating agreement or Bylaws, EIN #, CDD Form, Corporate Resolution
  • ACH Setup Form
  • Title Commitment, Survey, HOA/Condo Questionnaire (if applicable), E&O, Wire Instructions, Confirmation of GAP Coverage, CPL, Draft Deed, HUD
  • Evidence of Insurance – RCE/Insurable Value Required for Dwelling Coverage and Liability Coverage
  • Appraisal Payment (Appraisal to be Ordered by Capital Funding Financial)

For Refinance Transactions in Los Angeles :

  • Loan Application & Disclosures
  • Renovation Budget and Renovation Package with Contractor Information
  • Driver’s License or Passport (ITIN number if you are a Foreign National)
  • Payoff Statement or Mortgage Statement (if applicable)
  • 1 Months Bank Statement to show current liquidity
  • Entity Docs – Articles of organization, Operating agreement or Bylaws, EIN #, CDD Form, Corporate Resolution
  • ACH Setup Form
  • Title Commitment, Survey, HOA/Condo Questionnaire (if applicable), E&O, Wire Instructions, Confirmation of GAP Coverage, CPL, HUD
  • Evidence of Insurance – RCE/Insurable Value Required for Dwelling Coverage and Liability Coverage
  • Appraisal Payment (Appraisal to be Ordered by Capital Funding Financial)

HOW LONG DOES THE LOAN PROCESS TAKE TO CLOSE?
Once we have received the Appraisal, Title Commitment, and Insurance we will the loan to Final Underwriting. Upon review of the loan file by our Underwriter, we will submit to Legal for Loan Documents pending any Clear to Close Conditions.

At Capital Funding Financial, we close loans in 1/3 of the time it takes to close a conventional mortgage loan! Our quick and easy loan process eliminates the stress and hassle that has plagued the mortgage lending industry for years. You will be able to leverage your capital, grow your portfolio, and enjoy better cash flow using Capital Funding Financials’ rental loan program!

F.A.Q.

CAN I OBTAIN AN FIX AND FLIP LOAN WITH BAD CREDIT?
Yes! While a good FICO score is 700+, at Capital Funding Financial we do NOT require a minimum credit score (FICO) to qualify for a rehab or fix and flip loan.

ARE FIX AND FLIP LOANS SUBJECT TO EARLY PREPAYMENT PENALTIES?
No! Fix and Flip loans with Capital Funding Financial have No prepayment penalty!

WHY CAPITAL FUNDING FINANCIAL?
Partner with Capital Funding Financial on your next rental loan, fix & flip, or ground up construction loan. We have been investors in real estate for over 30 years both on the debt and equity side with over 1,000 Single Family Developments built across the US & Canada by our affiliated family office.

Therefore, we have the experience, the capital, and the knowledge to assist you in growing your Real Estate Portfolio! When you choose us as your Lending Partner you are able to avoid any additional fees as we process, underwrite, and close all of our loans in-house.

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