10/24/24 – Some info on Fix and Flips

I have been getting requests for fix and flip or fix and rent properties lately, so I wanted to let you know how they work. I will start with each of these loans being unique and based on the home’s ARV (After Repair Value).

Once we have a home in place, we look at the resume of the buyer and their contractor. Yes, you generally need a contractor involved, even if it is just on paper. We look at the ARV and the purchase price, and the lender determines the loan’s down payment. Yesterday, I ran two of these! One was at $635K; they needed to put $100K down, with $200K for rehab, and the lender gave an ARV of $1.050 Mil. Another one I ran has an ARV of $1.75 Mil; the buyer is paying $1.1 mil and needs $300,000 for rehab. That buyer only has to put down $130,000. In both cases, the buyer will have the equity to sell or refinance, and that’s the goal of the lender as they want to make sure there is an out plan.

These are both 13-15% down, and we have done a few with just 10% down, but that will depend on how good the deal is when you purchase. In both cases, the buyers will get the money for the repairs and will not have to come out of pocket if they get proper estimates.

Fees on Fix and Flip Loans are better than those on hard money loans, and the rates are in the high 9’s to 10’s, and fees are typically 2 -3 points depending on your experience.

Let me know if you have any questions on these or any other types of loans!

I am available all weekend if you need anything. Let me know if you have any questions or if someone is interested in buying a property. My cell is 661-714-6258, and my office line is 661-260-2970 ext. 2222. My direct line is 661-291-2222. When you text me, please text (661-714-6258) or email me at Mike@AugustaFinancial.com.

But wait, there’s more!

It has been a rough month for rates, and they got slightly better today! The economic news has been stronger than expected, and there are new fears that one of the parties will take the White House, Senate, and House of Representatives. When this happens, it cuts out the checks and balances in Washington. It is MUCH better for interest rates if we have Congress split! We will find out in a few weeks, but rates may continue to struggle until then!   

• 12-day escrows if your buyer is pre-approved - Conventional / FHA / Jumbo / Bridge
• We do loans in all states, so call me with anything you need.  
• Government Loans (FHA / VA/ USDA) are in the 5’s and 6’s.
• Conventional Loans up to $766,550.00 are in the 6’s
• High Balance Loans $766,550.01 – $ 1,149,825.00 are in the 6’s
• Jumbo loans above $1,149,625 are in the mid to high 6’s
• Bank statement loans - They are available with 10% down again, and larger down payments are in the 6’s.
• Profit and Loss Statement loans – 20% down – You don’t need bank statements, just a profit and loss statement!
• No income qualifier – 40% down with r serves In the 8’s!
• 0 down loans are in the high 6’s – 620 credit score min right now, up to $1,191,000.00.
• Private Money lenders - Hard Money Loans – 35% down!
• No Ratio Loans 30% down
• DSCR – Debt Service Coverage loans with as little as 15% down
• Bridge Loans - typically 7.99% with limited fees – and they get you where you need to go!
• 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates!

Interest rates are subject to change without notice. The above are LA County Loan Limits.

Good News – Cornerstone got their shit together, and they are warrantable! YAY!  

Bad News on Condos – This section has been moved to MikeMeena.com. I will post updates here, but all the information on the naughty list is now on my website. Just go there and click about it, and you will find our most updated list.

Please let me know if you hear anything new on condos or townhouses.

I am still available all weekend if you need anything. Let me know if you have any questions or if someone is interested in buying a property. My cell is 661-714-6258, and my office line is 661-260-2970 ext. 2222. y direct line is 661-291-2222 When you text me, please text (661-714-6258) or email me at Mike@AugustaFinancial.com.

Have a great day and an even better tomorrow. Please call me when you have a client who needs to borrow!