Finding Houses to Buy and Owners to Sell — Strategy #1

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When you are looking for properties to buy and owners that are ready to sell, there is nothing like getting in the car and driving around your town to see what is really there. Even with all the real estate marketing sites on the internet, when it comes to finding homes you might want to fix up and resell for a profit, you need to be your own detective and look for deals that might not be on the websites. It could be the owners are not internet savvy or the properties themselves are too droopy to lend themselves to pictures and video marketing.—

Driving for Dollars

Start by driving through nearby neighborhoods and mobile home parks. Look for vacant, run-down housing or vacant apartment units. Look for un-mown lawns, mail and newspapers piling up, closed curtains, un-watered grass, siding and trim that needs paint, as well as roofs in bad repair. If you are interested in commercial real estate, you can also look for retail and business space that looks like it has not been used for a while. Maybe the blinds are cracked, there is a tarp over the front door, and the windows never have any light in them.

Fixer-Upper_(8676229431)

FOR SALE—For LEASE

“For Sale By Owner” signs are also something to watch for. These are signs that the owner may not be taping into the web market. “For Rent” and “For Lease” signs may also be pointing to owners that really wanted to sell but couldn’t find a buyer. Look for estate sales signs and yard sale signs. Sometimes owners start clearing out their stuff because they are getting ready to sell. At the sale, ask the home owner if they will be selling soon.

Knock On the Door

When you find a home that looks promising, knock on the door. Knock on the neighbor’s door too. If no one answers, ask about what is going on with the property. Leave behind your business card. Write down the addresses and research the property from your computer. Keep a journal of prospects and follow up every month. You can keep an online journal too, photographing the house and making notes to help you remember to follow up.

In the case of commercial business space, the same strategy would apply. Try the door. Knock. Talk to the owners of nearby businesses and find out who owns the building and if they have shared their plans.

One tool that you can make for yourself is a door hangar. It can be something simple that you make yourself with a hole punch and rubber band, or something you more polished that you order form an online printer. It should say something like, “We buy houses. Call 512-555-1212.” If no one answers when you knock, leave one of your door hangars.

If you find a deal, give me a call for a fix-n-flip rehabilitation loan. You can e-mail too.

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

 

 

It’s Business: People Want Short-Term Rentals

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Great News For A Short-Term or Vacation Rental Property Business

No matter where you go, if you stay overnight, you need some place to sleep and shower. For dairy inspectors in 1915, the YMCA or the bus station might have been okay, but real hotels have been the mainstay choice for years now and the RV is good for the family that spends lots of time outdoors.

However, the online vacation marketplace has made it easy for travelers to search online for all sorts of alternative places to stay. You can look for condos, cabins, homes, and apartments in locations all over the world. This trend is good news for people who own vacation homes or second houses that they want to rent out. It is great news for people who want to build a short-term or vacation rental property business.

You might think that you have to live in Myrtle Beach or Hawaii to start a vacation rental property business. But this is not true. You can start a business right in your own town, right here in Texas.

Truly, these online vacation home marketplace sites have revolutionized the short-term rental business. They are a great tool for the rental property owner. Not only do they make it easy to advertise your property as far as the web can reach, but they also allow you to receive funds from buyers securely. A few of these vacation rental marketplace sites are listed here so you can check them out for ideas:

Air BnB: https://www.airbnb.com/

Homeaway: https://www.homeaway.com/

VRBO: https://www.vrbo.com/

There are many things to consider with any investment or any time you start a new business. Most of the time, you need a loan. To get a loan on a property, you need to know what property you want and how much you need to borrow. Here are a few tips to help you get started on your short-term rental property business plan.

The Property: “A superb location”

Be inspired and look for a property that you love and consider whether it is convenient to public transportation and/or has easy parking for private cars? Look for a single-family home or for a large house that has been converted into a triplex. One good way to start is to live on one floor, rent out one floor fulltime, and rent one as a short-term vacation rental. Remember that each floor or living space will need to have a separate means of access. You can consider doing the remodeling yourself to make a large home into a triplex. Construction funds should be included in the funds you need for your business loan.

Laws: “You can’t fight City Hall”

Check the zoning laws for the local government to make sure the community does not have rules against owners renting out homes or offering rooms or floors of their house for short-term rent. Do this before you buy. As they say in the neighborhood, “You can’t fight City Hall.” Well, you can, but it will be expensive, and you will probably lose. So, check the laws before you invest.

Furniture: “Very clean and inviting with a comfortable bed”

A long-term rental can be rented without furniture, but short-term rentals need to be furnished so you will get rave reviews on the online websites and earn repeat customers. Put these items into your plan and trim them from there depending on your funds.

You will need to have a washer and dryer available. If you are choosing the triplex, one in the basement might do, but stackable ones on each floor would be a real amenity and earn you the coveted, “They thought of everything to meet our needs.”

You will need a refrigerator, dishwasher, microwave, oven, and the latest HVAC system.

For the bedroom you will need a bed or beds, bedroom furniture, sheets, blankets, pillows, comforter, end tables, lamps, dressers, flat screen TV, hangars.

For the living room you will need another flat screen TV, at least one couch, easy chairs, reading lamps, book cases, and maybe a rug.

For the kitchen, table, chairs, silverware and dinnerware, coffeemaker, and cookware.

You can great prices at antique shops and thrift stores for furniture and decorating items like mirrors, pictures, book shelves. Some of the items you need, you will probably need to buy new, like the linens and the HVAC systems.

The Welcome Package: “They were great hosts”

Put together a welcome package. This package will tell renters about what amenities are offered in the space and in the town. Include useful information about public transportation and sites of interest.

Advertise: “It was so easy to find them.”

Advertise on as many vacation home marketplace sites as possible to get your name out there, get the reservations flowing, and start receiving funds securely. It is also a good idea to build and maintain a website.

Be Available: “They were the friendliest people”

It is very important that you available for emergencies and questions and if possible to check guests in. Take calls from interested parties and be friendly.

Lowenstein_Apartment_Complex

Build from One to Many

Grow. If you love the business and are making some money, be obsessive about it. When you can afford it, buy another property and enlarge your business.

Now that you are ready with a property and a plan, I can help you with a loan program to purchase your rental property. I am happy to announce that a loan program is now available to purchase rental property for the purpose of building your short-term or vacation rental property business. We have funds available for single-family residential property, condos (warrantable only), and ocean beach front property.

I would be pleased to have you call or e-mail too.

 

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

 

Jobs = Confidence

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U.S. Stocks Rallied again yesterday as corporate earnings and a good jobs report strengthened our confidence in investing. According to Investopedia, “The Market Sum,” by Caleb Silver, “We are six weeks deep into a stock market rally, the likes of which we haven’t seen since 1987.”

U.S. employers added an average of 223,000 jobs per month in 2018, much higher than the 170,000 per month predicted. 248,000 of those jobs were in the manufacturing sector, putting a dent in the 1.2 million manufacturing jobs wiped out in the last recession (Investopedia.com).

U.S. Occupations

If you want to know what type of jobs are in the U.S. labor market, you need to look at both the occupation (worker) and the industry (employer). You can use occupational employment statistics (OES) (published by the US Department of Labor at https://www.bls.gov/oes/) to compare occupations. You can see employment levels and wages for occupations where you live or in the type of business where you work.

According to the OES for the nation, retail sales person is the largest occupation. Next is food preparation and serving persons; then cashiers, office clerks, registered nurses, customer service representatives, laborers and freight movers, waitresses and waiters, secretaries, and general operations managers. These are the top ten occupations in the country. Manufacturing is not there — yet.

Loan Officer in Texas

You can look up “Loan Officer” though, and there are 307,240 loan officers making a mean hourly wage of $37.00 an hour, and interestingly enough, Texas has the second highest number of working loan officers (20, 810), second to California (39,520), with a mean annual income of $86,460.

Strangely, the top paying metropolitan area in the country for this occupation is Laredo, Texas, with a mean annual salary of $131,200. They don’t say how many loan officers there are in Laredo making this salary though. Lubbock, Texas is in seventh place on the top ten, with 260 loan officers, making a mean annual salary of $117,500 each. Number eight is Victoria, Texas, with 70 loan officers making a mean annual salary of $114,230 each.

So What? I think this means that Texas has a lot of money to lend.

Real Estate Brokers

What do the statistics say about “Real Estate Brokers?” First, there are 36,410 real estate brokers working in real estate in the U.S., with others working in management, building construction, credit, and business and professional organizations. Texas is fifth, with 2,290 workers employed in this occupation, compared to California with 5,570. In Texas, Dallas-Plano-Irving is the Texas metropolitan area on the list of areas with the highest employment level in real estate brokering, 830 brokers with a mean annual salary of $80,410.

Cowboys

Sad as it may sound, the song is right. “Mothers, don’t let your sons grow up to be cowboys.” I could find hunters and trappers on the list of occupations, but no cowboys. That cannot be right. This is Texas!

An occupation gives us purpose and confidence. Work is good.

I am a real estate broker. I work with people, land, homes, and money. I, myself, only see the back end of a cow when I visit Kansas. What could get better than that.

cowboy_hats.jpg

If you or your partner have a real estate purchase you would like to make or money you would like to invest in a real estate project, don’t forget, I’m on the net, in the book, and this is what I love to do.

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

 

References:

The Market Sum, by Caleb Silver at Investopedia.com

US Department of Labor at https://www.bls.gov/oes/

Cowboy hats. Nika Vee, Austin [CC BY 2.0 (https://creativecommons.org/licenses/by/2.0)%5D, via Wikimedia Commons

 

 

 

$142,000 Fractionalized 1st Lien Closed — Investor’s Lending Source

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Happy First of February! A Loan Closing in Killeen, TX —This is what makes ILS tick. I am taking this time to share this excellent news in these first days of February, 2019. Recently Closed Loan with Private Funds ARV $142,000 LTC 95.8% LTV 57.9% Private Funds – Fractionalized 1st Lien Exit Strategy: Fix to […]

via $142,000 Fractionalized 1st Lien Closed — Investor’s Lending Source

It’s Real: Multi-Family Property Investing

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As the stock market quivers and stock market investors peer into the fog of the future trying to see where stocks, the economy, and earnings are going, up, down, or sidewise, real estate stands firm, on a block, in a neighborhood, around the corner from this or that, providing shelter to human beings. It might be old or new, trendy or dilapidated, occupied or abandoned, but it is real and panics are not going to move it, even if fire, earthquake, wind, or water might. Housing is still a basic need and if an investment fills a basic need, it is a safer investment.

An investment is not safe though if you do not do your research and match the facts of the property and area situation with your needs, expectations, and goals. When considering investing in multi-family properties, be sure to pay close attention to the quality of property management and to the location. This might be a good time to refresh your memory on investor shorthand for communicating with each other on property types. It really kind of easy, like: A, B, C, and D.

The letter grades are assigned based on property characteristics like, age, tenant income level, growth areas, appreciation, amenities, and rental rates according to ApartmentVestors.com. The grade isn’t there to scare you away from a certain property because it receives a low grade. (Although D areas in dangerous neighborhoods are not investments to be taken lightly or by beginners.) The property grade is there to help you set realistic goals for your investment and to communicate within the industry about what you are looking for.

Multi – Family Property Class A. Class A properties are newer, built in the last 15 years and have the most amenities, lowest vacancies, demand highest rents, and have less maintenance costs. These properties are above average in terms of design, construction, and finish; the tenants make above-average incomes, they are in desirable locations and they are accessible. These apartments are professionally managed by national or large regional management companies.

Investment sense: These buildings have the most appreciation potential but less cash flow starting out. Professionally managed and in desirable areas.

Multi – Family Property Class B

Class B properties were built in the last 15 to 30 years and have some amenities. The rents are average, a bit lower than Class A buildings. Tenants are usually a mix of corporate workers and skilled trades people. These apartments are in desirable places but do not have the design and finish reflective of the latest standards and preferences. The construction is adequate, and the buildings are generally well maintained by national or regional management companies; unit sizes are usually larger than current standards. These buildings have some appreciation potential and decent cash flow rates.

Investment sense: These buildings have the good appreciation potential and more cash flow than Class A. Professionally managed and in desirable areas.

Multi – Family Property Class C

Class C properties are older, built more than 30 years ago. They have fewer amenities, if any. The tenants are mostly service employees and you might have some government-subsidized tenants. Rents are below average, lower than Class B rents, and the occupancy rate is lower. These apartments provide functional housing, exhibit some level of deferred maintenance, are usually located in less desirable areas, and are generally managed by smaller, local property management companies and private investment groups. Cash flow is high, but appreciation is much lower than Class A or B apartments.

Investment sense: These buildings have the little appreciation potential, but cash flow is high. Property management varies because it is local and performed by smaller companies. It might be great, quirky, or terrible. Be sure to check. The location is less desirable but still safe.

Multi – Family Property Class D

Class D apartments are in challenging neighborhoods and potentially dangerous areas. They are older buildings, with no amenities, and high deferred maintenance. The tenants can be challenging, and management is intensive. Cash flow is reduced by lack of payment by tenants and repairs.

Investment sense: These buildings have no appreciation potential and cash flow is reduced. Property management varies because it is local and performed by smaller companies or it might not be performed at all. Be sure to look around carefully. The location could be dangerous, and it might be hard to attract tenants to the area.

Property and Area

When you are looking at buildings and the areas they are built in, apartmentvestors.com recommends that you pick a property in an area that has a higher class rating than the property. The area classes, like the property classes are A, B, C, and D. With A being a growth area, B being an older stable area, C being an older declining area, and D being older and declining, potentially rapidly declining area.

Apartmentvestors.com offers a strategy that suggests it is better to pick a D house in an A area because the area will have more influence over the stability of your investment over time. I would call this the domain of the fix-n-flip investor. As the deep urban areas or warehouse districts become more appealing to working professionals, a building that was once a C property in a D area might become a D property in an A area and be well worth renovating. But you need to be sure the area classification is really changing.

If you are a hands-off straightforward investor, not a fix-n-flipper, you might want to look only at the A and B properties in the A and B areas if you are taking a long-term approach and interested in appreciation in value. However, you might be more interested in cash flow. Then you might want to look at B and C properties in B, or C areas.

Photo by Caroline Cagnin on Pexels.com

That is a lot of alphabet flying around.

If you have a multi-family property in mind and are ready to start negotiating or are ready to buy, send me an e-mail or give me a call and I can help the funding.

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

 

 

References: apartmentvestors.com

Decorating a Rental

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Clean & Presentable

Rob B. and Rob D., founders of the investor forum and advice website, The Property Hub, share decorating choices that every landlord needs to know on housebeautiful.com.

Although the larger housebeautiful.com website tells us that matte black is the latest color choice for home decorating, Rob B. and Rob D. recommend that decorating a rental property should not be about personal expression but about appealing to “everyone and anyone,” durability, and cost effectiveness.

No Dog Shower

A rental is not a flip. Keep it simple is the rule. There is no need to go overboard buying the latest luxury fixtures or fittings. You also don’t need to gut the kitchen if it is functional. That means the dog shower in the laundry room that they are talking about over on the sweetwaterliving.com blog is not on your shopping list for the rental property even if you want to put one in your own mudroom. In case you are wondering where that came from

, a dog shower is one of the other latest interior design trends we can expect to see in 2019. However, your goal for the rental is to make the property clean and presentable. You might not even allow dogs.

No White Carpet

Decorating a rental is very straight forward. For the floor, opt for laminate in the kitchens, bathrooms, and hallways because it is easy to clean and if you get decent quality laminate, it should not rip or tear. Laminate is easier to clean than carpet and it will not look dirty or worn as quickly as a light-colored carpet would. Rob and Rob advise that if you must put down carpet, put down dark colors with a good underlay.

For the walls, choose white and light grey throughout and opt for water resistant eggshell or acrylic paint in the kitchen and bathroom. If you own many rentals, use the same color in all of them so you have some around for touchups.

For the bathroom, install a shower over a bathtub rather than a shower over a shower tray and try to put in at least a second toilet, if not a second complete bathroom, so if something breaks it is not such an emergency.

For the kitchen (here is where it is most tempting to overdo it), try to update only the work surfaces and cupboard doors first. That might be enough.

green wooden chair on white surface

No Furniture

Furnishing is something Rob and Rob recommend we avoid. It costs a lot and renters who bring their own furniture are more likely to stay for the long term.

Simple, clean, & durable, that is what it takes. That is what is likely to please most everyone.

If you are thinking of investing in rental property and need funds for the purchase or the remodeling project, send me an e-mail.

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

 

 

References:

https://www.housebeautiful.com/uk/renovate/refurbish/a23424169/landlords-decorating-rental-property/

https://www.thepropertyhub.net/

 

Mystery @ Work

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It is a Saturday in January and if you are working and it is like the frozen tundra outside, it might be a good day to smuggle a little piece of poetry into that annual report, feature sheet, or sales brochure. Add a bit of mystery. It’s not February yet, but you can still be a little romantic in your work and outwit the apps.

Don’t make it look like a typo though, but let it open up some space and catch the reader, making them wonder, “What? Where did that come from. I’d better read that again.”

“Net income for the full year was $201 million, and diluted net income per share was $2.63. There were 3 percent fewer average shares outstanding during 2017, reflecting the continuation of our long-standing share repurchase program. And so it goes, He lived the Truth which reconciled The strong man Reason, Faith the child: In him belief and act were one, The homilies of duty done! Last year’s net income was reduced by a non-cash estimated amount of $31 million, or the equivalent of $0.17 per share.”

Have a lovely day. Send me an e-mail if you are working today and need some gap funds or a hard money loan.

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Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

References: John Greenleaf Whittier, “The Chapel of the Hermits.” 1852 from The Poetical Works of John GreenLeaf Whittier. 1884. Boston: Houghton, Mifflin, and Company.

 

Deal Making

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Learning to negotiate is critical to investing in real estate. Although this is not a full class on business negotiating, or even a brown-bag lunch seminar, I found this list of tips on negotiating on the Forbes website, and it is helpful. The article, “15 Tactics for Successful Business Negotiations” is by Richard Harroch and was written in 2016. The techniques, or tactics, are worth considering.

It is very likely you will naturally have some negotiating ability or you wouldn’t be in the real estate business. However, your skills may not be evenly distributed, and it is good to reflect on a comprehensive list so you can bring to mind skills that you might need to work on. For example, perhaps you are not shy at all, but you hate paperwork. As you will see from the following list, both of these traits, no fear and paperwork, will have a place in your negotiating tool box.

The 15 tactics include:

Listen and understand the other party’s issues and point of view.

Key: Do not do all the talking.

Be prepared.

Key: Review the business’s website and do Google and LinkedIn searches to learn all you can about the other party, the person you will be negotiating with, past deals, and what you competitors have offered or their pricing.

Keep the negotiations professional and courteous.

Key: “Don’t be an asshole.” Establish a good long-term relationship.

Understand the deal dynamics.

Key: Who has the leverage, time constraints, alternatives available to the other side, who is getting the payment?

Always draft the first version of the agreement.

Key: This lets you frame how the deal would be structured. Balance is key.

Be prepared to play poker.

Key: Know your walkaway price and stick to it. Walkaway if you cannot live with the offer.

Avoid the negotiating by continually conceding.

Key: the other party will learn your tactic and keep producing unreasonable demands, knowing you will concede. The deal will not get done.

Keep in mind that time is the enemy of many deals.

Key: be prompt and turn documents around quickly. Keep the deal moving.

Do not fixate on the deal in front of you and ignore alternatives

Key: Alternatives let the other party know they have competitors.

Do not get hung up on one issue

Key: Set aside hot issue for later so you do not get stuck on it and maybe can think of a creative solution.

Identify who the real decision-maker is.

Key: You cannot get anywhere if the other party cannot say yes or no. If you have the leverage, ask to speak to the person who has the power.

Never accept the first offer.

Key: Counteroffers and some back and forth will most likely lead to both parties being satisfied with the deal.

Ask the right questions.

Key: Do not be afraid to ask questions.

Prepare a Letter of Intent or Term Sheet to reflect your deal.

Key: The letter reflects your view of the key terms of the deal.

Get the help of the best advisors and lawyers.

Key: It is often worth the money to hire an investment baker or real estate attorney in a complicated deal.

As a broker, I can help you make the funding contacts and fill out the applications. But, in the business of real estate investing it is worth your time to learn to negotiate so you are satisfied with the deal you end up with.

To read more from Richard Harroch who is a venture capitalist in the San Francisco area.

hand_shake_(28112844326)

The entire article appears at https://www.forbes.com/sites/allbusiness/2016/09/16/15-tactics-for-successful-business-negotiations/#7ac99a025281

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

 

Handshake picture courtesy of EU2016 SK [CC0], via Wikimedia Commons.

 

A Town with a Trail

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Fort Worth

A good real estate property hunter follows the flow of people. And, like the birds that love the water, people too are flocking to the rivers and bayous of Texas. As they follow the new jobs and other opportunities opening up in Texas, they are especially drawn to the waterways and trails that offer walking, biking, boating, and horseback riding. I think of trails as places of freedom, where one can move about, rehabilitate, breathe fresh air, see new things, and even talk with a cousin as you walk along.

Young professionals and families who have lived in the really big cities like New York and Los Angeles are seeing Texas trail towns as good places to call home. According to an article in the wsj by Alina Dizik, they are buying homes in Fort Worth to get better prices on larger luxury homes, walkable neighborhoods, and a yard for their dog. In Fort Worth, they also can get access to the Trinity River Trail and proximity to the city’s cultural district if they so choose.

nashua_river_rail_trail_3

The Trinity Trails System

The Trinity Trails are a system of trails along or near the Trinity River in Fort Worth. There are over 40 miles of trails along the river and its tributaries. The trail network connects with 21 parks, the Fort Worth Botanical Garden, The Japanese Garden, Log Cabin Village, the Fort Worth Zoo, the historic Stockyards, and downtown. You could disappear for a whole weekend on that trail and never be bored.

The Trinity Trail also offers 17 trailheads for picnics and rest stops, five boat launches for canoes, kayaks, and sculls, a water-ski slalom course and fishing in a number of spots. For a map of the trail, visit

http://www.trwd.com/wp-content/uploads/trinity-river-trail-map.pdf

Fruitful Hunting

You might want to consider looking for flip-n-fix properties in the areas along this trail. Although the Wall Street Journal article was talking mostly about luxury homes, it did mention a rehab that the owner undertook themselves. Your hunt for the perfect, or at least interesting and profitable, fix-n-flip property might bear fruit in this area.

If you find a deal, give me a call for a quick gap loan to secure the property or for a full fix-n-flip rehabilitation loan. You can e-mail too. I can help with loans in the DFW metro area.

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

References:

Dizik, A. As Homebuyers Flock in, Fort Worth Embraces its Cowtown Reputation. WSJ, January 17, 2019.

Nashua River Rail Trail 3 photo by Photo by White, Michael A. at English Wikipedia [Public domain], from Wikimedia Commons.

In-a-Hurry Loan to Cover the Gap

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There are several reasons why a fix-n-flip investor might want to secure a fast loan to cover a gap. A gap loan, as the name implies, is a loan that bridges a span of time. It helps you gain control of a property quickly even if you are still scrambling to get all your paperwork done for a full rehabilitation loan.

A Buyer in a Hurry
At some time or other, you might face a seller in a hurry. One situation that puts a seller in a hurry is foreclosure. Many property owners in this situation are in denial so they wait until the last week or so, or even days, before the foreclosure sale to act on saving their credit. To save their credit, they must pay the bank all they owe on the mortgage right now. The house might actually be worth much more than what they owe if they have been paying on the loan a long time or put a large payment down on it. But, a foreclosure on their record will ruin their credit. So, for them, it is better to sell at a discount and survive to buy another house another day.

In this scenario, an owner in foreclosure has agreed to sell the property to you at a steep discount, but they need to close the deal quickly. You, the investor, want to buy this property and you make an offer. However, the competition is extremely stiff, and another investor is sitting in the wings waiting to obtain the property. Your offer locks up control of the property temporarily. You need to move quickly to secure a loan. Normally the loan process takes a minimum of 7 working days and typically takes 10-15 working days.

A Nonrefundable Deposit

Another reason you might need funding in a hurry is that you have stumbled upon a wholesale purchase with a tight deadline to close, perhaps 2 to 5 days. The property is ideal for your purposes and you want to make an offer. However, if you don’t get the deal closed by the deadline, you will lose the nonrefundable deposit you are required to put down and control of the property you are seeking.

 

mind_the_gap

Getting Control of the Property

Here is where obtaining a gap loan is useful. A gap loan allows you to purchase the property as is while you are in the process of obtaining a rehab loan. The gap loan can be secured in 2 to 3 days typically. Your strategy is to obtain control of the property through this gap loan, begin paperwork to refinance the loan immediately and eventually complete the rehab and offer the property for sale.

REI Capital Resources has funds available for fix-n-flip loans with terms up to 6 to 9 months with a minimum of 3 months.

Fix-n-Flip Option 2

E-mail or call for more information on minimum and maximum loan amounts, interest rates, terms, and fees for specific project. I can help you with first liens only and these loans are limited to the Austin, DFW, Houston, and San Antonio Metro areas.

Pat St.Cin

Patrick@reicapital.cash

512-213-2271

Austin, Texas