Real Estate Investors Are You Interested In Buying A Foreclosure? We Can Help With Our New Fix And Flip Or Fix And Rent Loans For Investors
It’s no surprise that investors who Fix and Flip properties often buy foreclosed properties to fix and flip. Foreclosure properties are very appealing to fix and flip or fix and rent investors. However, there may be some drawbacks as well. For example:
- Foreclosed properties almost always need repairs. RE investors who specialize in doing the work and reselling the property at market value may have limited financing opportunities.
- Foreclosed, bank-owned properties may need to have liens and judgments cleared before you can close.
- Foreclosures are often sold at below market prices because of their problems.
To the average investor, these factors make the property appealing. However, those same desirable factors may look very undesirable to the average lender. When you’re a real estate investor, you typically need funds for the acquisition, repairs and holding costs. Many traditional lenders will turn away from funding foreclosures for several reasons:
1. Condition- many lenders do not want to finance properties that need extensive repairs. They’re more interested in making loans to traditional home buyers for properties in good condition.
2. Funding- Often even lenders who don’t mind loaning on “ugly” properties will not lend enough money to fund the acquisition as well as the repairs. If the investor doesn’t have the cash on hand to pay out of pocket for renovations and holding costs, they may have to pass on great opportunities.
3. Borrowers Credit Score- Often lenders rely on the borrower’s credit in order to approve the loan.
Lately, new options for investors are now available. New funding sources such as Private money or hard money lenders for real estate investments have stepped in to fund these transactions where traditional lenders have closed their doors.
For those involved in real estate investing – both fix and flip and/or fix and rent, these specialty lenders now fill the void. This provides real estate investors who wish to take advantage of buying distressed properties, a new opportunity to purchase, rehab and put these properties back into the marketplace for purchase or rent. Creating a truly win-win-win situation for RE Investors, the marketplace, and the lenders.
R & R Commercial Lending has both Fix and Flip as well as Fix and Rent loans available. We will finance up to 80% of the acquisition cost and up to 100% of the rehab cost.
Give us a call today to learn more and to find out if you qualify for our fix and flip or fix and rent programs.
R & R Commercial Lending, Inc.
We also finance
- Commercial buildings
- Accounts Receivables
- Medical Practice loans