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.
Standard Loan Terms
Max Loan Amount: $5,000,000
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
- Single-family residences.
- Two to four units.
- Multifamily homes.
- Other property types case by case.
- 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
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)
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!