Fix and Flip
Fix-and-flip are short-term loans used by real estate investors to purchase and improve a property to then sell for a profit or refinance. These improvements range from minor renovations to a complete reconstruction of an existing home. The initial draw will be calculated based on the As-is Value of the Property and the renovation budget will be advanced in construction draws.
Standard Loan Terms
- Max Loan Amount: $5,000,000
- Max LTC/ARV (Loan to Cost / After Repaired Value):
– Experienced Investors: The Lesser of 95% LTC or 75% ARV.
– First-Time Investor: The Lesser of 90% LTC or 65% ARV. - Rates: Starting at 8.5%
- Term of loan: 6-18 months
- Payments: Interest Only with balloon at maturity.
- Prepayment penalty: None
- Interest type: Non-Dutch
Standard Closing Costs
- Origination Fee: 1-2%
- Underwriting Fee: $1,500
- Draw Fee (for future draws on the loan): $250
- Legal: $500-$1500
- Appraisal Fee: $500-$950
- Title Insurance and recording fees: 1%
(Approximate)
Property Types
- Condominiums.
- Single-family residences.
- Two to four units.
- Multifamily homes.
- Townhouses.
- Other property types case by case
Standard Requirements:
- Credit Application
- Last 2 bank statements (US bank account)
- Copy of ID and Borrowing Entity docs
- Purchase Contract (If Purchase)
- Project budget/ Scope of work
- Approved plans (If applicable)
- Track Record Sheet
- Contractors information
- Property Insurance
Standard Closing Time
- The Usual Time to Close is 10-15 days.
RBI Private Lending is a direct lender and does not rely on other institutions to close the loans. Once the title work, appraisal and feasibility report are ready, We will be too!
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FAQ
Do you offer personal loans?
We do not offer personal loans. Our loan programs are for real estate investors.
What kind of real estate loans do you offer?
RBI Private Lending finances real estate investments. Both the purchase of properties for rent or a second residence, as well as renovations for subsequent resale. We also finance real estate development.
What are the interest rate and loan term?
Usually, our rates are 9.99%. Loan terms are 12 to 36 months. There are some closing costs such as a 1.75% origination fee.
What is the amortization type?
Most of our loans are interest only, which means a fixed interest is paid throughout the term and the full balance at maturity. For example, a $100,000 with 12 monthly terms and 9% rate will yield 12 monthly payments of $750 and a final payment of $100,000.
What happens if I sell the property or prepay the loan before maturity?
In most of our loans, there is no prepayment penalty, so you can pay the same amount of the loan before the term ends.
