vicki irvin's (virvin) Blog

So you've purchased your flipping property, now what? If you did a proper evaluation prior to making the purchase, you have a good idea of what needs to be done. The first step is to figure out the scope of work required. Is it a minor cosmetic rehab or a major gut and rebuild project? Is it a-do...

Since flipping loans are based on the value of the house, the borrower's credit is not as big a factor as in other loans. That is not to say that credit is ignored altogether. The lender will usually run a credit report to look for red flags. They may not be willing to lend to someone who has had...

The interesting point here is that by following our winning formula, (ARV x 70%) - Cost of Repairs = Maximum Price, you will rarely need to be putting in a lot of your own money. Using this formula will limit your purchase price to the maximum that you can borrow, repairs included. It should be n...

Since we are talking about flipping it is highly likely that the property will not qualify for a conventional loan. If that is the case, what do you do? One option is to use lenders that specialize in difficult to place, or non-traditional loans. These are known as Hard Money Lenders (HML). Becau...

Getting a conventional loan for a flipping project can be difficult. The lender will order an appraisal, which will list defects that are found in addition to placing a value on the house. Some are deal killers while others aren't. If the problems are not too bad, the lender may require that mone...

If you do not have the resources to pay cash or are unable to get the seller to finance the deal, you need to obtain a loan to complete the purchase. If possible, you should try to finance the purchase using a conventional mortgage. There are many types available including fixed and adjustable ra...

             Let's use an example. We'll assume that a property has an After Repair Value (ARV) of $300,000 and needs $30,000 in repairs. Using our formula we determine that we are willing to pay $180,000.   (ARV x 70%) - Repairs = Maximum Offer ($300,000 x 70%) - $30,000 = Maximum Offer $210,000...

  Another way to buy a property without having to obtain a mortgage is to purchase it "subject to existing financing." This can be a risky way to do it because you are essentially leaving the mortgage in the seller's name. The bank is not notified about the sale so that the "due on sale" clause i...

             Another way to avoid dealing with the usual lending sources is to have the seller carry back financing. This can be done pretty easily if the seller owns the property outright, that is, the seller has no mortgage loan on the property. While this is not the norm, it does happen often ...

           What if you could be a cash buyer without having any cash? If you have equity in your home or other investment properties it may be possible to use it. You could refinance your current mortgage or add a second mortgage. A very good way may be to use a home equity line of credit or HELO...