Fix and Flip Loans

Fix-and-flip loans are short-term loans used by real estate investors to purchase and improve a property to then sell for a profit or refinance. These improvements range from minor renovations to a complete reconstruction of an existing home. The initial draw will be calculated based on the As-is Value of the Property and the renovation budget will be advanced in construction draws.

Fix and Flip
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Standard Loan Terms

Max Loan Amount: $5,000,000

Max LTV/LTC:

Experienced Investors: 65% of Appraised Value or 90% of Purchase price (The lowest)

Unexperienced Investors: 60% of Appraised Value or 70% of Purchase cost (The lowest)

Rate: 8%-8.99% (Experienced Investors) or 9%-9.75% (Unexperienced)

Term of loan: 12-18 months

Payments: Monthly interest payments with balloon at maturity

Prepayment penalty: None

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Property Types

  • Condominiums.
  • Single-family residences.
  • Two to four units.
  • Multifamily homes.
  • Townhouses.
  • Condo-Hotels.
  • Other property types case by case.
requirements

Standard Requirements:

  • Credit Application
  • Last 2 bank statements (US bank account)
  • Copy of ID and Borrowing Entity docs
  • Purchase Contract (If Purchase)
  • Project budget/ Scope of work
  • Approved plans (If applicable)
  • Track Record Sheet
  • Contractors information
  • Property Insurance
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Standard Closing Costs:

Origination Fee: 1-2%

Underwriting Fee: $1,500

Feasibility and Contractors Report: $1,200

Draw Fee (for future draws on the loan): $400

Legal: $750 – $1,500

Appraisal Fee: $500-$950

Title Insurance and recording fees: 1% (Approximate)

time

Standard Closing Time:

The usual time to close is 10-15 days. RBI Mortgages is a direct lender and does not rely on other institutions to close the loans. Once the title work, appraisal, and feasibility report are ready, we will be too!

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FAQ

What is the interest rate and loan term?
Usually, loan rates are 9% and 1.75% points. Loan terms are 12-36 months

What is the loan type?
Most our loans are interest only, which means a fixed interest is paid throughout the term and full balance at maturity. For example, a $100,000 with 12 months term and 9% rate will yield 12 monthly payments of $750 and a final payment of $100,000

What happens if I sell the property or prepay the loan before maturity?
In most of our loans there is no prepayment penalty.