Category Archives: Fix & Flip Loans

Finance Your Fix and Flips Projects With Hard Money Loans!

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Category : Fix & Flip Loans , Hard Money Loans

Fix and flip is really a slang term to describe a type of real estate investment deal. The real estate investors purchase an undesirable single family home at below market value and do some repairs to the property in order to make it more appealing. The idea is to significantly increase the market value of the property with the minimal expense possible so that the home can be resold for profit.

While buying, fixing and quickly reselling properties can be lucrative, it takes much more money to flip a house than it does to simply buy a house that you want to live in. Not only do you need the cash to become the property’s owner, you also need renovation funds plus money to pay for property taxes, utilities, insurance and loan interest from the day the sale closes through the rehab work and until the day it sells.

Unfortunately, many people struggle to find financing to buy fix and flips. Hard money loans are the best financing source for them. Hard money lenders provide loans to experienced or inexperienced flippers who need money quickly. Hard money lenders do not require the same amount of time and paperwork as traditional banks. Instead, they evaluate the property itself (both before and after improvements) and your ability to successfully complete the project.

Here are some important reasons that house flippers use a hard money loan instead of a bank loan. Compared to a bank, hard money lenders typically:

  • Can give you a quicker loan quote
  • Can fund a loan much faster
  • Don’t always require third party appraisals
  • Make loans on distressed homes that need rehab. Many banks won’t touch this type of property
  • Rely heavily on the value of the property. Banks typically rely heavily on the borrower’s credit
  • Have much shorter approval process, less red tape, and less paperwork
  • Don’t have maximum exposure limits to one borrower

The Bottom Line:

Hard money lenders play a vital role in the financing of all kinds of real estate investments and especially for flipping houses. A hard money loan is good for the experienced and inexperienced fix and flippers. The use of hard money in your house flipping business can be a tremendous benefit, increase your margins, help you grow your business, and allow you to diversify your risk. However, you just need to do your homework, ask questions and minimize the risks that come along with the use of outside capital.

If you are an investor who is ready to make an offer on a property and you need financing or just want to get pre-approved loans, then you have come to the right place! Magna Capital Group, Inc is one of the most trusted hard money lenders that can help you achieve your house-flipping dreams. We provide fix and flip loans across California. Our interest rates start as low as 7% and monthly payments are interest-only. Further, pre-qualification takes few minutes and funding happen in 10-15 days.

For more information about our fix and flip loans program, please feel free to call us today at (310) 734 4044 or email at info@magnaloans.com.

 

Hard Money Loans – The Fast And Easiest Way To Finance Fix and Flips Projects!

Category : Fix & Flip Loans , Hard Money Loans

Fixing and Flipping Houses have become a very profitable business today, but it costs a lot of money to fix and flip houses. Real Estate Investors need lots of capital to purchase and renovate a house before they can flip the house for a profit. In addition, they need to pay contractor fees, listing and broker fees, holding costs, and much more. House Flippers find hard to qualify for traditional loans cause of their strict lending regimes. Luckily, there are hard money loans options available for them. Hard money loans are the most useful and fastest way to get money for investors who are new to fix and flips or who have tarnished credit. Hard Money Loans are most suitable for experienced or inexperienced flippers who need money quickly. Fix and Flip Investors typically use hard money loans to purchase and renovate a property for flipping.

Why are hard money loans better than bank loans for Fix and Flip funding?

  • Hard money loans are faster & flexible compare to traditional bank loans. It usually takes 24 hours for loan approval and 5-10 days for funding.
  • A hard money loan is a short-term loan secured by real estate that can be used to purchase, renovate, and sell a property within 1 year.
  • Hard money loans offer easier qualifications compare to all other financing options. Novice home flippers can also get qualify for hard money loans because hard money lenders care more about the property and its potential value than about the borrower’s experience or financial qualifications.
  • The credit score is not the primary factor in hard money loans. Hard money lenders prefer to take look more at the collateral and borrower ability to pay. On the other hand for banks, credit score is the primary factor to make the decision for loan approval.
  • In the case of hard money loans, borrower’s income is of lesser concern, for traditional loans borrower must have good credit with documented income.
  • Hard money lenders offer very flexible terms to Investors which suits their financial situations.
  • Hard money lenders offer up to 70% amount of after-renovation value (ARV). For example, if a home costs $50,000 but the ARV is $100,000 then you can borrow $70,000. After paying the $50,000 purchase price, you’ll have $20,000 left for closing costs, lender fees, rehab, carrying costs and selling expenses such as staging, marketing, and real estate agent commissions. If you can stick to that budget, you won’t need any money out of pocket to flip the home.
  • A hard money lender typically charges between 11 and 18 percent interest and 3 to 10 points. For bank loans, the closing costs usually 2-5% of the total loan amount.
  • There is no prepayment penalty in hard money loans.
  • Hard Money Loans work for both experienced and inexperienced fix and flippers finance investment projects when whereas banks only work with inexperienced house flippers.

The Bottom Line:

If you’re looking to tap into the growing real estate market for your personal financial interests, but your credit score is entangling your efforts, you can utilize hard money loans to buy a house that needs some work and later you can resell at a good appraisal value. A hard money loan is good for the experienced and inexperienced fix and flippers. With the real estate market expanding by leaps and bounds every single year, many real estate investors are keen to get their portion of the market share. Property prices are on the rise, hence savvy investors can buy low, and sell high to make a good profit.

Magna Capital Group, Inc is one of the most experienced and trustworthy hard money lending companies across California which helps its clients in many different types of situations realize their property ownership dreams. We provide fix and flip loans to experienced and inexperienced fix and flip investors on attractive interest rates with no prepayment penalty.

For specific information on whether or not a hard money loan is right for you, please feel free to call us today at (310) 734 4044 or email at info@magnaloans.com. We will provide our full support to make your fix and flip projects successful.

Fix and Flip Loans: The Best Financing Option For Flipping Houses!

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Category : Fix & Flip Loans

Fixing and flipping houses is only one way to make money investing in real estate. A lot of people dream of getting into this business, but funding is the number one obstacle. It costs a lot of money to fix and flip houses. You need capital to purchase homes, cover the cost of renovations, contractor fees, listing and broker fees, holding costs until you flip the home for a profit.

A fix and flip loan is a great way to get financing if you’re just starting out in the housing industry. If it’s your first time, you may not have the seed money that you will need to get started. Fix and flip loans can boost you to get into this industry.

Here are some things to know before getting a fix and flip loan:

The Best Financing Option:
Obtain financing is one of the basics of fixing and flipping homes. Keep in mind that the turnaround in most of these cases is less than a year. That makes getting a flip and fix loan from a traditional bank almost impossible. Banks make their money from the interest accrued from long-term financing agreements. They don’t like having the borrowed amount paid off within a year. So if you need to get this type of quick funding, you’ll have to look for a hard money lender who will agree to a short-term deal.

Find The Right Property:
Finding the right property is the first step of flipping houses business. You must know what a house will sell for once you fix it up and how much repairs and upgrades will cost. You’ll want to find something that you can get a really good deal on, and it should also be in need of renovation. Keep an eye out for foreclosures or those homes that have been damaged by fire or water. Once you’ve found the right place, one that you think you can make a profit on, it’s time to secure a fix and flip loan.

Keep Your Documents In Order:
Make sure you have paperwork in order before meeting with someone to secure financing. Don’t forget to check your credit score to make sure that the lender won’t think that you are a risky borrower. Make sure you have all of your documents in order to show how much reserve capital you have. You should also be able to verify your income by having pay stubs, a W-2, and tax returns on hand.

Understand Financial Calculations:
Financial calculations are different in fix and flip loans as it’s not a traditional mortgage. Lenders will calculate the amount they’re willing to front you by looking at your money reserves, your credit, your expertise, and the purchase price of the unit you’re going to rehabilitate. They also take into consideration the estimated costs of renovating and repairing the property and the estimated value of the finished project.

Know The Loan Term:
You are recommended to keep in mind that the term for fix and flip loan is usually between 6 to 18 months. While some companies will sometimes allow for three-month extensions. Creating a budget and a schedule can make rehabbing easier, so you should have a realistic plan in place for completing the rehabilitation and selling the property before your time is up. If you don’t give yourself enough time, you could be in trouble.

The Bottom Line:
Fixing and flipping houses is definitely a great way to earn money. To succeed in this business, however, you have to be patient and dedicated to your job. If you want to get into the home flipping business but don’t have the cash on hand, a fix and flip loan may be what you need. However, your chances of securing the financing will be improved if you follow the tips above.

Manga Capital Group, Inc is a leading residential and commercial lending company in California with 30+ years of experience in the real estate industry. We provide unmatched expertise in customizing a fix and flip loan structure to meet your requirements with minimal documentation. If you are considering for a fix and flip loan, call us today at (310) 734 4044 or email info@magnaloans.com or visit www.magnaloans.com

Hard Money Loans – The Quicker Way Of Financing Real Estate Deals!

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Category : Construction Loans , Fix & Flip Loans , Hard Money Loans , Real Estate Loans

Real estate investors choose to use hard money for many different reasons, but the main reason is the ability of the hard money lender to fund the loan quickly. In many cases, hard money loans can be funded within a week. The application process for a hard money loan generally takes a day or two and in some cases, a loan can be approved the same day. Quick funding is a significant advantage for real estate investors, specially when they are trying to acquire a property with many competing bids, a quick close with a hard money loan will get a seller’s attention and set their offer apart from the rest of the buyers offering slow conventional financing. On the other hand banks require lots of documents for conventional loans including credit score, income history and also there should be no issues such as a short sale or foreclosure with borrowers.

Here are some situations in which you can utilize hard money loans:

A borrower can get a hard money loan on almost any type of property – including single-family residential, multi-family residential, commercial, land, and industrial. Hard money lenders are primarily concerned with the property’s value rather than the borrower’s credit. Borrowers who cannot get conventional financing due to a recent foreclosure or short sale can still obtain a hard money loan if they have sufficient equity in the property that is being used as collateral.

Conclusion
You can consider a hard money loan to fund one of your future real estate deals as it works quickly and required less documentations rather than banks.

Manga Capital Group, Inc is a leading hard money lender in Los Angeles, California with 30+ years of experience lending on properties. For more information on our loan programs Call (310) 734-4044 or Email info@magnaloans.com

 

 

 

The Best Way To Finance Fix And Flips

Category : Fix & Flip Loans

Fix and flips are a great way to earn a living or to earn extra money. The most difficult part of buying fix & flips is finding financing, but you can use hard money and finance to your flips quickly.

The big thing about hard money loans is they allow you to buy a property with little money down, also you can base the loan off the value of the home after repairs are made because hard money lenders base the loan amount off the repaired value. That means you could potentially finance the entire purchase price plus some of the repairs.

Here is an example of a hard money loan that will finance 65% of the ARV (after repaired value) of a Repairs needed $22,500

Loan amount of 65% of ARV = $97,500

The entire purchase price and $22,500 of the repairs could be financed People can easily start fix and flips and earn a living or to earn extra money. The hardest thing for most people when starting to fix and flip is finding the money to do it. A hard money loan is a great option or them. They can use hard money and finance their flips easily.

If you have any need of financing fix & flips, contact Magna Capital Group, Inc. today. We have 30 years of experience in finance industry with thousands of satisfied customers in California. For more information, call (310) 734 4044 or email at info@magnaenter.com.

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