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My Mortgage Blog

The Property Flip Mortgage allows a borrower to leverage their real estate up to 80% of the After-Renovated Appraised Value (with a minimum $10,000 down). Industry standard is to only lend up to 80% of the Purchase Price or Current Value of the home. What this means that you can keep the rest of your capital to renovate and resell or refinance the property (if the property will be kept as a rental). We also conduct our own in-house No Fee Valuation quickly to allow you to take advantage of quick closings and also save money. Here is an example to illustrate:

 

Property Flip Mortgage

o Purchase price = $320,000

o Renovations = $15,000

o After Renovated Value = $400,000

o We will lend $310,000 so out of pocket expenses are $25,000 ($10,000 down + $15,000 for renovations) + the carrying costs to do this flip.

 

Other Lenders

o Purchase Price = $320,000

o Renovations = $15,000

o Will only lend 80% of purchase price = $256,000 so out of pocket expenses are $79,000 ($64,000 down + $15,000 for renovations) + carrying costs to do this flip.

 

This is a great property investor product! Little investment for your big returns. Call me with any questions.