Do You Have Property Criteria That Must Be Met?
Geographic boundaries, as well as limitations on the type of property you are able to purchase, might be put in place by the lender. Make sure you fully understand what types of properties the lender will allow you to buy.
If you are looking for a two bedroom, fix and flip, but the lender requires 3 bedrooms and a price point of 250k+, you might be out of luck.
Do You Provide Funds For Rehab?
In many cases, a real estate investor will need to make some repairs. Will you have to pay for this out of pocket? Or will your lender provide funds for rehab and upgrades?
This is important to know when you are looking at potential properties for investment. While the ability to borrow more money to fix up the home might seem appealing, make sure the value is there as you will be paying additional interest on these funds.
Does Your Company Flip The Loans After They Are Originated?
Many companies will sell the loan to a 3rd party after the loan has been originated. This means that there is a possibility that you will be working with a yet to be determined 3rd party. If they flip the loans, you will be making payments and working with a different company once your loan has been processed.
What is Your Experience With Loans Like This?
Someone who is familiar with what you are doing and who see’s what a good deal you are making, is more likely to provide you with better terms. They will see the loan as low risk, and be able to help you maximize your profits.
As with any decision in real estate, it important to know all of your options and shop around. Remember to ask questions about ANYTHING you are uncertain about.
Our team can help guide you through the process of choosing a lender who is right for you! To get started, simply fill out this form, or give our office a call to get started! (214) 233-5504