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flip financing: Critical information for rehab projects and flips - 05/30/12 06:25 AM
More profit, less risk, fewer hiccupsImportant tips for REO rehabs and flips
In my experience 2,3,4 family properties have the best risk-reward ratio, the best profit potential iow. Aquisition prices tend to be lowest, and rental incomes offset monthly interest, insurance, and tax expenses. Avoid profit erosion/losses by leasing properties at the earliest earliest opportunity - even if you plan to sell. Sales can take a long time. (See #1 above). 2,3,4 family properties work best for rehab loans, resale, and refinance to a home loan. (See #1 above). With the exception of the FHA 203K (owner-occupied only) there are basically no home loans … (0 comments)
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flip financing: Do Fix & Flips with our money - or your money... - 01/15/12 12:42 PM
We are still faced with the best real estate opportunities of a lifetime. As sad as it is to say, the economic malaise continues to serve us very well. My investment group is interested in funding
highly profitable (fix and) flip projects - up to 100% of hard cost.
INVESTMENT CRITERIA
Our investment criteria are as follows:
1-4 family properties only. (2,3,4-family preferred) Preferred investment size: $20K-$100K ($200K max) NJ, NY only ARV (After Repair Value) of at least 150% of hard (purchase and rehab) cost Cross-collaterization on other properties considered.
If you are interested in:
Fix & Flip project funding, go here for … (1 comments)
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flip financing: Financing REO projects in 2012 - 01/05/12 08:53 PM
We are still faced with the best real estate opportunities of a lifetime - and amazingly there are even getting better! As sad as it is to say, the economic malaise continues to serve us very well.
FOCUS ON RENTAL VIABILITY
Because resale markets remained weak (and rental markets strong) during 2011, we started assisting developers with refinances to convert rehabbed properties to rental properties rather than wait for the re-sale. This way we were paid back, and developers could cash out and move on to the next project. Long-term rental viability is therefore now more important than resale value - which is why we prefer 2,3,4-family … (2 comments)
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flip financing: You can have >1 FHA loan - Mortgages after foreclosure, short sale - New REO inv company - 12/03/11 04:11 PM
Developers present me with REO projects on a daily basis. They need financing and investor capital. I am starting a new company dedicated to highly profitable, short-term, REO investments. If you are interested in being part of this as a (founding) shareholder, let me know. /// This week a quick review of mortgages after deed in lieu, foreclosure, or pre-foreclosure (short) sale. See below, or go to my website. - Paul :)
Can you have more than 1 FHA loan?Yes, under the following cirumstances:
Relocation. Must document unreasonable commute distance from current home. Increase in family size. Must have current mortgage balance at or below 75% LTV. Vacating jointly owned … (0 comments)
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flip financing: REO financing - Lending criteria - Mortgages after bankruptcy - 11/14/11 12:43 PM
All the money is being made in REOs at the moment. Lower risk than securities, and great cash on cash returns. You can buy them, or finance them at <50% loan to value. To add yourself to the mailing list for opportunities go here. /// This week a quick review of mortgages after bankruptcy. In short, the waiting period for FHA is 24 months, and for Conventional 48 months. See below. Next week: Waiting periods following foreclosure, short sale, or modification. /// Rates are still near record lows, but underwriting criteria are becoming tougher: Higher Fico requirements and rental revenue exclusions from … (0 comments)
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flip financing: Rates at all time low - FHA loan limits - Flip investment/financing - 08/05/11 01:59 PM
I have been advocating mortgage-secured fix and flip investment and financing for over a year. I submit that with unstable stock markets and real estate markets the concept is soundly validated. It is a low risk/high yield way to invest - and to get highly profitable fix and flips done. My investors and are first mortgage-secured at less than 60% LTV with 20%+ returns on investment. Not a single project is in trouble, and the developers are making their profits. Read up and/or watch the "Smart Fix and Flip Investing" video (Registration needed). - Paul
Bad news, or good news? Check out the recent bad news. It’s … (0 comments)
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flip financing: Market indicators! - FHA limits - Fix-Flip opp - Secrets to getting a mtg - 07/09/11 07:16 PM
Time to jump in, if you have not already? I see many investments with great cash-on-cash returns (there's one below). Good deals are still to be had, but rock bottom buying opportunities are dwindling, low rates, strong rental market, and now also an uptick in sales. The timing is right I think - PReal estate stocks benefit from renewed interestFORBES: Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Dow Jones U.S. Real Estate Index Fund (IYR) where we have detected an approximate $185.3 million dollar inflow - that's a 5.0% … (2 comments)
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flip financing: Mortgage-secured fix-flip investment: 22% profit share and 12% interest - 07/08/11 05:14 PM
Here is a current investment summary. As always, a quick response is needed. Please let me know if interested:
Mortgage-secured fix-flip investment. Purchase and renovation of 3-family property. Location: NJ 07111 Estimated project time: 4 months Funding requirement is for $80,000, or 39% of After Repair Value (ARV) Investor projected return: 22% profit share, plus 12% interest: $21,500 total. Minimum participation: $10,000.00 Go here to download the Investment SummaryGo here to review the "Smart Fix-Flip Investing" information.
Regards,
-Paul___________________Paul LuykxLX Financial LLCPh: 201-918-5443Ph: 800-405-0676Fx: 866-839-1337pluykx@lxfinancial.comhttp://www.lxfinancial.com/
… (0 comments)
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flip financing: Buyers bypass the traditional mortgage process - 06/28/11 09:19 AM
Keep your eyes on alternate financing options. There is now a clear trend. Two types to keep your eyes on: Portfolio loans, and mortgage-secured investment (investors who will provide financing and get interest PLUS profit share, mostly for fix and flips). - Paul Buyers bypass the traditional mortgage processFannie Mae chief economist Doug Duncan believes cash purchases of homes will continue at "quite high levels" for the rest of this year as investors and even some homebuyers bypass the traditional mortgage process. Read.Mortgage-secured investmentsThe trick is buying for a good price AND being able to sell at a below market price AND being able … (1 comments)
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flip financing: This market's for you! - Self-directed IRAs - 06/11/11 03:00 PM
This market's for you! Low prices, low interest rates, great cash on cash returns - whether home-buyer or investor, this market's for you! What's holding us back is groupthink ("it's a bad market, and we all agree on this"), and fear to think outside the box. I provide mortgage financing, and make/manage fix and flip investments. Whether you are a realtor, buyer, investor, or developer, I'm here to assist! /// I believe that where markets are heading should have little to do with investment decisions at this point, but if you're in to prognosticating you may want to read this for a few opinions. … (1 comments)
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flip financing: FHA limits to decline - Don't worry, be wealthy - New finance options - Market fundamentals - 06/05/11 09:42 AM
There are two types of financing to keep an eye on: Portfolio loans that offer unique, common sense lending criteria. (Last week I told you about pledged asset loans and no PMI, both to 90% LTV). There are many developments on the horizon that may have a drastic, positive impact. Stay tuned. The second type is mortgage-backed investment, cash investors basically who are willing to finance someone else's investment in return for a share of the profit. Currently used primarily for fix-flips, I see broader application. I'll keep you posted. - Paul
FHA loan limits to decline. FHA loan limits will likely … (0 comments)
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flip financing: For those who have the means to "press forward" - 05/22/11 07:53 AM
In 1843, my favorite magazine, The Economist, said we have "a severe contest between intelligence, which presses forward, and an unworthy, timid ignorance obstructing our progress"
This couldn't be more timely if it were written today - and about our real estate market. There are a lot of people who are paralyzed with fear when it comes to making real estate investments now, and that's reasonable. A standard real estate investment can be very risky right now with the instability of housing values.
But for those who have the means to "press forward" through this and look for ways to still make money in the … (0 comments)
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flip financing: Mortgage flip rules - Why qualifying income & 640 score are not enough - 05/15/11 12:47 PM
Mortgage flip rules do not need to nix any sales! Just make sure you verify the lender's rules and be prepared for some additional processing requirements. See below. /// Qualifying income and a 640 score are no longer enough. I actually think it's good news. See below. /// Make it a good week folks! - Paul
Mortgage rules for flipsFlipping rules apply when the seller acquired the property in the last 12 months. Double or concurrent closes are not allowed. The owner must be the seller. For a quick flip financing quote go here.
There are industry standards, and lenders add their own unique … (1 comments)
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flip financing: Homepath reno loans - Credit refresher - Why REO rehabs are cheap, and tough to buy - 05/07/11 09:55 PM
We offer Homepath renovation loans. Prospect is a national Top 5 lender for FHA 203K loans and Homepath loans. We now also offer the Homepath renovation loan. See below. /// I am still waiting for the launch of a new construction/rehab program. Without it REO rehabs remain super cheap, and also tough to buy. See below. /// Contact me for expert service. I'm open for business! - PaulHomepath renovation loanHere are the highlights. Also note the current incentives offered.* High LTV: 97% financing available for O/O SFR properties* Loan amount is based on the as-completed value or purchase price and improvements, whichever is less* Renovation funds are included … (0 comments)
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flip financing: Fix and Flips is where the money is. And not the risk! - 04/28/11 06:31 PM
Fix and Flips is where the money is. And not the risk!Check out my online presentation at the LX Financial website. It makes the case for it, and it shows you how you can take advantage of it as low-risk investor, realtor, developer, end-buyer. /// Rate are down a bit, and that's not a bad thing. /// Don't forget about the Homepath buyer incentives. /// It's a tough market, and there are also great buys out there! - Paul
Rates fall, home sales riseCONSUMERAFFAIRS.COM - The news from the real estate market today was mostly good, although it's not clear how meaningful any of it … (1 comments)
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flip financing: Why rehab REOs are so cheap - Homepath incentives - Declines for no good reason? - 04/23/11 01:14 PM
The reason liquidation values of 1-4 unit, rehab, REOs are so low is because other than the FHA 203K (Prospect is the #2 FHA 203K lender in the country) there are no mainstream financing programs available. For investors there is no financing at all! In addition, seller ("the bank") usually wants you to close in 30 days, which is virtually impossible. This supresses the liquidation value of these types of properties even further. And it also means opportunity! How to invest? How to finance? How to sell under these circumstances? (See below). /// Closing cost assistance is offered on new Homepath purchase through June 30th … (2 comments)
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flip financing: Smart fix and flip investments - 04/09/11 06:58 PM
We look for low risk, reasonable returns, and no complications. The real estate market may be "bad" at the moment, but for our type of investments conditions are "excellent"!
• Our developers buy 1-4 family properties at rock bottom prices, and rehab them with lightning speed.
• The homes are re-sold to end buyers at below market prices, or bank re-financed as revenue property.
• Our first mortgage secured investors earn 8-12% interest, plus a 3-6% profit share every 2-6 months. We invest in every project ourselves.
• To receive listings of current investments go here to subscribe.
• If you … (0 comments)
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flip financing: 203K direct lender - 1 in 3 apps declined - HAMP laswuit - REO finance+investment - 04/08/11 06:07 PM
As many as 1 in 3 applications are declined, so says the Fed. My average definitely better :) but the fact is that the current maze of regressive rules is a real challenge - and risk-based pricing makes getting the best rate difficult to attain. More info. /// It's about time! A homeowner is suing her loan servicer for denying a HAMP modification alleging they never had any intention of permanently modifying her home loan payments to an affordable amount despite having her make a slew of trial payments. I have hear this many times! /// Rates were up a little this week /// And lastly, a reminder that … (0 comments)
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flip financing: Fix-Flip funding, 100%xcost, 1-4 units, NJ, NY, PA - 04/03/11 11:47 AM
Fix-flips are lucrative because lenders need to liquidiate. The fact that there is no mainstream investor financing available further suppresses the liquidation price. LX Financial can fund up to 100%xcost. We need ARV 150%xcost. Go here for a scenario quote: www.fixflipnow.com
… (0 comments)
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flip financing: Inside Job - Fortune mag: Time to buy again - FHA 580 Fico - Rehab fin options - 04/01/11 05:50 PM
Inside JobIf you have not seen the movie yet, see it soon. Inside Job the 2010 documentary film about the financial crisis of 2007-2010, directed by Charles H. Ferguson. The film won an Academy Award for Best Documentary Feature last month. It's sad, also educational - and also more than a little amusing. A must see. - P See trailer Fortune Magazine: "It's time to buy again"Veteran Fortune magazine writer Shawn Tully - best known as the guy who accurately proclaimed the height of the market in 2006 - makes a convincing case that the moribund new-construction market, combined with rising rents and an improving … (0 comments)
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