Fix & Flip Loans Houston are very popular following Hurricane Harvey. These type of Houston Hard Money loans provide Houston Real Estate Investors loans to buy properties. The loan gives 90% of the purchase price and 100% of the rehab budget. This helps the Investor buy with the absolute minimum of funds.
Houston Fix & Flip Loans allow the Investor to get up to 90% of the purchase price funding. In addition, the loan gives 100% of the rehab budget.
The process is simple. Once a property is under contract a rehab estimate is secured. That budget and the purchase contract is given to the appraiser. The appraisal will need to come in equal to the purchase price. The appraiser will also do an ARV estimate. The ARV is what the property will be worth with the rehab done.
Usually, the total loan cannot exceed 75% of the ARV. This includes both the purchase and the rehab together.
If you are just beginning to Invest, be sure to 1st set up a new LLC. This Limited Liability Corporation is required for this type of a loan. Fix & Flip Loan Houston Loans is made to your LLC…not to you. The loan is only made on non owner occupied properties.
It is easy to calculate your loan payment. The Houston Fix & Flip loans are interest only payments. The loan usually is for a 12 month period. This allows time to complete the Rehab and sell the property. Many Houston Real Estate Investors will then refinance into a long term Rental loan.