Fix and Flip Loans

Fix and Flip Loans: Not Just for Real Estate Moguls

 

Fix and flip property loans have become extremely popular over the past few years. Since the housing market has recovered, people all over the country are investing in real estate to earn a living or simply to make some cash on the side.

What is a Fix and Flip Property?

A ‘Fix and Flip’ investment is not the same as purchasing and living in a home with the plan to sell one day. At the very core, fixing and flipping a home is the process of acquiring a distressed or run-down property at cheap price with the intention of doing a complete renovation and immediate sale. Once the renovation is complete, the property is sold for a much higher price than it was originally bought for. There are many ways a renovation can improve home value, check out this resource from Investopedia for more information.

How can you secure funding?

There are a lot of people who would love to fix and flip properties to make money. However, the biggest obstacle is getting the funding to do so. Even if you are able to pay for the property out of pocket, the endeavor is expensive and risky.

Another sizable obstacle is the fact that banks typically will not offer long-term financing for a fix and flip loan as they usually finance properties to be held long-term. They don’t like offering short term loans because the returns on their loans are focused around long term mortgages.

Fix and flip properties are usually sold within a year after being purchased. As banks will not usually lend in the short-term, the buyer must find a loan to get the proper financing for a fix and flip property. Cue hard money.

Hard Money Lender

Using a hard money lender like Source Capital Funding, Inc. is an easy way to get short-term financial support with more flexible terms and conditions than what the banks offer. Hard money lenders will provide a loan based on the value of the property after it has been renovated. This is known as ARV (after repaired value). For example, let’s say the lender will provide a loan of 70% of the ARV. If you buy a property for $100,000 and the ARV is $200,000, the lender will provide a $140,000 loan. After purchasing the property, the buyer will need to provide an estimated cost of repairs and a plan to turn the distressed property around.

These types of loans are done very quickly, usually within a day or so. Most hard money lenders charge between 12 and 16 percent interest.

Worried about finding a hard money lender? Don’t be – hard money lenders are everywhere. However, most of them only lend in certain states, whereas only a few will lend nationwide. When finding the right hard money lender, it is best to start on a statewide search and work up to a national scale if needed.

Be aware that some hard money lenders only fund certain types of deals, and you’ll need someone like SD Equity Partners, who specializes in hard money loans for fix and flip properties.

Private Money and Crowdfunding

Using private money to finance a fix and flip is another great option if available. Private money typically comes from family, friends, or private investors. These loans are built around relationships and trust.

Crowdfunding is a relatively new way to finance a fix and flip. Crowdfunding is the practice of financing an endeavor by raising many small amounts of money from a large amount of people. In regards to fix and flips, crowdfunding works very similarly to hard money lenders. Only instead of the funding coming from a single lender, financing comes from number of different investors.

Crowdfunding for real estate should be approached very carefully. A good place to start is with a full understanding of the JOBS Act. The JOBS Act allows flippers to solicit the fact they are raising money for a real estate deal to a broader range of investors. Before the JOBS Act, a flipper could only advertise deals to investors of whom they had a pre-existing relationship. There are many crowdfunding sites available in which you can do the proper research on investors and their interests to effectively organize your efforts to get the best possible return.

Final Thoughts

You shouldn’t let funding get in your way of fixing and flipping a home. All it takes is proper assessment of your strategy and the proper research. Any distressed property comes with risks. Make sure you are working with professionals and have a fantastic team with you. It is very difficult to flip a home by yourself.

 

4.5.2013 – Real Estate Investments

There are many ways to save and many ways to invest. Trust deed loans are a low risk choice.

With April 15th just around the corner, many people are already spending their tax return. At least in their head. Those who will receive money back may use it to pay off bills or buy something they’ve been longing for. Some may decide to take their money and turn it into an investment hoping to increase their gain even further.

When it comes to investing, as we all know, there are many options. Real estate investing alone, provides multiple choices. You can purchase income producing properties, such as an apartment complex or office building. Getting involved with remodeling and flipping a less expensive fixer-upper is another investment opportunity. Then there is the low stress, non-labor intensive option that hard money lender Source Capital Funding offers; trust deed loan investments.

Funding trust deed loans gives money to someone to purchase a home or piece of property or to complete a construction project. This type of real estate investment, not only helps you to earn money, it also helps improve our economy by putting more active funds in the market. It’s an opportunity to help the buyer and the community, while also increasing your monthly income.

Here is what one of our satisfied investors is saying about their experience.

Working with Source Capital has been such a pleasurable experience. We are so grateful to have found this team to help direct our investments. Their business mode is honest, fair, and trustworthy ~ three traits that are difficult to find. We look forward to continuing our business relationship.

And below is a shared experience from a long time investment client.

Since 2007 I invested with Source Capital, it has been a great rewarding experience with an 11% .return on my money, hard to beat. Thank you Pat and Sacha for your help, professionality, honesty and ethics. I already recommended you to my family and friends.

For more perspectives from investors, buyers, brokers and other real estate professionals and clients, visit the Testimonial page on the Source Capital website. You can also learn more about us and people’s experiences on our Google page.

If you are interested in finding out about trust deed loan investment opportunities or any of Source Capital’s services, you can call 858-705-6144 or toll free at 888-334-6636. You can also email private money loan experts, Sacha Ferrandi at sferrandi@hardmoneyfirst.com and Pat Hook at phook@hardmoneyfirst.com.

Source Capital Funding, Inc. is a direct, private hard money lender that provides hard money loans and trust deed investment options through Arizona and California. Source Capital lends in all major cities in Arizona, including Phoenix, Tucson, Mesa, Chandler and Glendale and in California, including, San Francisco, Los Angeles, Anaheim, Sacramento, San Jose, Fresno, Oakland, Bakersfield and Riverside. If you need a private hard money lender to fund your hard money loan or you want to work with Source Capital Funding as an investor to help supply loans, contact us at the numbers and email addresses listed above. You can also email us using this convenient online form.

In addition to our Google profile page, you can find us on Facebook and Twitter. I hope you had a great week and have a great weekend!  –Sindi Somers


4.3.2013 – Why Source Capital?

 

Buying, building or investing? Source Capital can help!

As a consumer, it is always helpful to have a recommendation from someone. When it comes to something that involves our finances or security, a trusted referral becomes even more important. Private money lender, Source Capital gives opportunities to those that want to invest, those that want to buy and those looking to make improvements. Whether a private real estate investor, first time home buyer or someone in need of a construction loan, Source Capital is a beneficial resource.

 

 

 

If you are searching for a private lender for yourself, your clients or as a place to invest, Source Capital may be just who you were looking for. Below are examples of how Source Capital’s Trust Deed Loan experts, Sacha Ferrandi and Pat Hook impact those they work with.

 

 

 

AN APPRAISER GIVES PRAISE TO SOURCE CAPITAL

 

 

 

As an appraiser who has worked with Sacha and Patrick for the last 3 + years. I can confidently say they are the most professional, prompt, courteous, and efficient private lender I have ever worked with!! They spend countless hours working with their client’s needs, whom several I have also had the pleasure of working with. They always stay current upon all of the recent changes regarding the lending industry, as well as local rules. It is always a pleasure working with anyone within their company. Keep up the good work!!

 

 

 

A REAL ESTATE BROKER GIVES SOURCE CAPITAL MORE THAN 5 STARS!

 

 

 

As an experienced real estate broker in the Bay Area, Sacha is my new ‘go to’ guy for private lending. After dealing with three different private lenders who failed to perform for my Buyers on their new home purchase, Sacha saved the deal – and delivered exactly what he promised, when promised. His focus on customer service is a 10+. He’s now on my speed dial. Don’t hesitate to use Source Capital. They deserve more than 5 stars!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source Capital Funding, Inc. is a direct, private hard money lender that provides hard money loans and trust deed investment options through Arizona and California. Source Capital lends in all major cities in Arizona, including Phoenix, Tucson, Mesa, Chandler and Glendale and in California, including, San Francisco, Los Angeles, Anaheim, Sacramento, San Jose, Fresno, Oakland, Bakersfield and Riverside. If you need a private hard money lender to fund your hard money loan or you want to work with Source Capital Funding as an investor to help supply loans, contact us at the numbers and email addresses listed above for Sacha and Pat. You can also email us using this convenient online form.

 

 

 

 

 

 

 

You can learn more about Source Capital, including reading more reviews on our Google profile page. A great way to stay up to date with us, including following this blog, is by liking us on Facebook and following us on Twitter. Enjoy your week! –Sindi Somers

 


4.1.2013 – Build It and They Will Buy

Across the country, construction spending is on the rise.

What do you do if there aren’t enough houses for sale to satisfy the demand for them? Build more!  With the prominent shortage of real estate inventory and the increase in demand for property, builders have gotten busy.

According to a report cited in the article at the link below, U.S. builders’ spending has increased twenty percent from this time last year. Twenty percent! With the slowing of foreclosures and short sales and more buyers in the financial position to spend, the real estate market is definitely in a different place. Creating more options for residential buyers via new construction is a smart move and sure to be a relief for those wanting and needing a home.

To learn more, you can read the article in its entirety at the link below.

Construction spending is on the rise across the country.

Whether you are interested in purchasing a home that is already built or you want to be a part of the building process, Source Capital can help. Loan experts, Sacha Ferrandi and Pat Hook offer trust deed loans, for those wanting to purchase, as well as build. If you have questions, they are happy to answer them. They can be reached at 858-705-6144 or toll free at 888-334-6636. You can also email Sacha at sferrandi@hardmoneyfirst.com and Pat at phook@hardmoneyfirst.com.

Source Capital Funding, Inc. is a direct, private hard money lender that provides hard money loans and trust deed investment options through Arizona and California. Source Capital lends in all major cities in Arizona, including Phoenix, Tucson, Mesa, Chandler and Glendale and in California, including, San Francisco, Los Angeles, Anaheim, Sacramento, San Jose, Fresno, Oakland, Bakersfield and Riverside. If you need a private hard money lender to fund your hard money loan or you want to work with Source Capital Funding as an investor to help supply loans, contact us at the numbers and email addresses listed above for Sacha and Pat. You can also email us using this convenient online form.

You can learn more about Source Capital on our Google profile page, which includes reviews from some of our clients, investors and associated real estate professionals. A great way to stay up to date with us, including following this blog, is by liking us on Facebook and following us on Twitter. It’s the first day of April. I actually didn’t hear the words “April Fools” all day! I hope your new month is off to a great start!  –Sindi Somers


3.29.2013 – Investment Opportunity

Trust deed loans provide a low risk investment opportunity.

There are many ways to invest in real estate. You may choose to purchase a fixer-upper and flip it for a profit. Another option is to buy commercial real estate or an apartment complex and collect monthly rent, as the property value increases. But for those that are looking for an investment that will require less of a time commitment, private lender trust deed loan programs are worth considering.

A buyer needs funding. If they need it fast or they aren’t able to qualify for a loan they can apply for a non-traditional bank loan with a private lender. That’s where the investment opportunity comes in. As an investor, you provide the money to fund the loan. The lender acts as an intermediary between the two parties, handling all aspects of the transaction, including overseeing the completion of the legal paperwork. While the loan is being paid off, the investors collect the monthly payments with an added percentage rate making a monthly profit for the term of the loan. The property’s deed of trust is the collateral of the loan. When funding a trust deed loan the investor’s money is secured by the property being purchased.

If you are interested in finding out more about this low risk investment opportunity contact Sacha Ferrandi or Pat Hook of Source Capital. They are happy to answer any questions you have. They can be reached at 858-705-6144 or toll free at 888-334-6636. You can also email Sacha at sferrandi@hardmoneyfirst.com and Pat at phook@hardmoneyfirst.com.

Whether you are looking to invest in a trust deed loan or apply for a real estate loan yourself, Source Capital can be a great resource for you! Source Capital Funding, Inc. is a direct, private hard money lender that provides hard money loans and trust deed investment options through Arizona and California. Source Capital lends in all major cities in Arizona, including Phoenix, Tucson, Mesa, Chandler and Glendale and in California, including, San Francisco, Los Angeles, Anaheim, Sacramento, San Jose, Fresno, Oakland, Bakersfield and Riverside.

If you need a private hard money lender to fund your hard money loan or you want to work with Source Capital Funding as an investor to help supply loans, contact us at the numbers and email addresses listed above for Sacha and Pat. You can also email us using this convenient online form.

You can learn more about Source Capital on our Google profile page, which includes reviews from some of our clients, investors and associated real estate professionals. A great way to stay up to date with us, including following this blog, is by liking us on Facebook and following us on Twitter. Hope you had a good week and that you have a great weekend all!  –Sindi Somers

3.28.2013 – Phoenix Striking A Balance

I know I may have been redundant, as of late with all my reports of inventory shortages, rising prices and bidding wars between buyers.  Well… surprise! I have a real estate market stand out to report today.

Phoenix is a great market for luxury home buyers.

While other areas of the country are weighing favorably on the side of the sellers, the Phoenix, Arizona luxury housing market has seemed to have struck a rare balance. Prices are rising, but not skyrocketing and there are ample choices in the market for high end buyers. The changes in the Phoenix market are moderate compared to other areas I have been sharing with you.

More details about this interesting difference in the real estate market are featured in an article in the Phoenix Business Journal. You can read the article in its entirety at the link below.

Phoenix, Arizona’s luxury housing market is a unique specimen in today’s market.

Whether you are looking to purchase in Phoenix or anywhere in Arizona or California, Source Capital can be a great resource for you! Source Capital Funding, Inc. is a direct, private hard money lender that provides hard money loans and trust deed investment options through Arizona and California. Source Capital lends in Phoenix and all major cities in Arizona, including Tucson, Mesa, Chandler and Glendale and in California, including, San Francisco, Los Angeles, Anaheim, Sacramento, San Jose, Fresno, Oakland, Bakersfield and Riverside. If you need a private hard money lender to fund your hard money loan or you want to work with Source Capital Funding as an investor to help supply loans, contact us  at 858.705.6144. You can also email us using this convenient online form.

You can learn more about Source Capital on our Google profile page, which includes reviews from some of our clients, investors and associated real estate professionals. A great way to stay up to date with us, including following this blog, is by liking us on Facebook and following us on Twitter. Hope to see you in social media land. Have a great weekend!  –Sindi Somers

3.26.2013 – Napa Valley, California

Napa Valley is well known for many things, including its vineyards.

I’ve never been there, but I have heard Napa Valley, California is beautiful. It’s also known, of course for the wine the area produces. A lot of people visit Napa, but what would you think about living there? If you are in the market for property, perhaps Napa is a place to consider. Either for a lovely full time residence or a relaxing and fun part-time vacation getaway.

I found the article at the link below interesting and educational about the Napa Valley real estate market. As I have reported previously there is a drop in available inventory in many areas. Napa Valley is one such area.

What’s changed since 2012 in Napa Valley, California?

Whether you are looking to purchase in Napa Valley or anywhere in California or Arizona, Source Capital can be a great resource for you.

Source Capital Funding, Inc. is a direct, private hard money lender that provides hard money loans and trust deed investment options throughout California and Arizona. Source Capital lends in Napa Valley, San Francisco and  all major cities in northern and southern California, including, Los Angeles, Anaheim, Sacramento, San Jose, Fresno, Oakland, Bakersfield and Riverside and also in Arizona including, Phoenix, Tucson, Mesa, Chandler and Glendale. If you need a private hard money lender to fund your hard money loan or you want to work with Source Capital Funding as an investor to help supply loans, contact us  at 858.705.6144. You can also email us using this convenient online form.

You can learn more about Source Capital on our Google profile page, which includes reviews from some of our clients, investors and associated real estate professionals. A great way to stay up to date with us, including following this blog, is by liking us on Facebook and following us on Twitter. I hope you are enjoying the last week of March. Still so hard to believe the year is moving, as fast as it is. Have a good one! –Sindi Somers

3.24.2013 – Malibu’s Carbon Beach

I have posted before about some of the world’s most expensive available real estate. According to a recent report on Forbes.com, Malibu, California could be on that list.

As far as beachfront property goes, Malibu’s, Carbon Beach has some of the most expensive in the world. Boasting two hundred thousand dollars per foot of beachfront, Malibu is about twenty miles from Hollywood. Some of its famous residents include, Paul Allen, David Geffen and Joel Silver.

Read more on the topic at the link below.

The world’s most expensive beachfront real estate includes, Malibu, California.

The beauty that is, Malibu, California.

Whether you are looking to purchase in Malibu or anywhere in California or Arizona, Source Capital can be a great resource for you.

Source Capital Funding, Inc. is a direct, private hard money lender that provides hard money loans and trust deed investment options throughout California and Arizona. Source Capital lends in San Francisco and  all major cities in California, including, Los Angeles, Anaheim, Sacramento, San Jose, Fresno, Oakland, Bakersfield and Riverside and also in Arizona including, Phoenix, Tucson, Mesa, Chandler and Glendale. If you need a private hard money lender to fund your hard money loan or you want to work with Source Capital Funding as an investor to help supply loans, contact us  at 858.705.6144. You can also email us using this convenient online form.

You can learn more about Source Capital on our Google profile page, which includes reviews from some of our clients, investors and associated real estate professionals. A great way to stay up to date with us, including following this blog, is by liking us on Facebook and following us on Twitter. Looking forward to a new week, I hope yours is a great one! –Sindi Somers

3.23.2013 – San Francisco 2014

 

The streets of San Francisco. Well… at least one of them.

I think it’s important to stay in the present moment, as much as possible. I have found that that practice alone helps one to enjoy life. However, gaining perspectives about possible future outcomes can help us better plan today to create a more enjoyable tomorrow.

 

We are only a few months into 2013, yet it was interesting to me to look ahead to 2014 when I came across the blog article at the link I am including in this post. Sorry to jump ahead, but as we become well emerged in 2013 and approaching the point where we can no longer refer to it, as a new year, it seems time to look ahead once again.

 

What does the rest of this year hold? And what about predictions for 2014? As a private lender, Source Capital oversees transactions throughout California and Arizona. So when I get something that pertains to one of these two states’ major cities, I definitely take note. I am sharing at the link below insights into the San Francisco real estate market. It features perspectives pertaining to the rest of this year, and on to the next.

 

Read the post about San Francisco in 2013 and 2014 at this link.

 

Whether you are looking for property in San Francisco or anywhere in California or Arizona now or in 2014, remember Source Capital as a resource for you. They offer a number of services, including financial assistance. If you need funding down the road or immediately, Source Capital’s buyer friendly trust deed loan programs may be what you are looking for. Since they are not a traditional bank they don’t have to struggle through overwhelming red tape and time consuming obstacles.

 

Source Capital Funding, Inc. is a direct, private hard money lender that provides hard money loans and trust deed investment options throughout California and Arizona. Source Capital lends in San Francisco and  all major cities in California, including, Los Angeles, Anaheim, Sacramento, San Jose, Fresno, Oakland, Bakersfield and Riverside and also in Arizona including, Phoenix, Tucson, Mesa, Chandler and Glendale. If you need a private hard money lender to fund your hard money loan or you want to work with Source Capital Funding as an investor to help supply loans, contact us  at 858.705.6144. You can also email us using this convenient online form.

 

You can learn more about Source Capital on our Google profile page, which includes reviews from some of our clients, investors and associated real estate professionals. A great way to stay up to date with us, including following this blog, is by liking us on Facebook and following us on Twitter. I hope you are enjoying your weekend! –Sindi Somers

3.21.2013 – LA Makes the Top 20

The high cost of living in L.A. is trumped by Miami, New York, London, Paris, Hong Kong and Monaco.

If you find yourself complaining about your monthly rental rate or mortgage costs, you might feel better if you read the article at the link below. It features the most expensive real estate markets in the world. As far as U.S. cities, Los Angeles and Miami made the top 20, but the only American city to make the top ten was New York.

International cities on the list include London, Paris, Moscow and Sydney. Read all about who’s property prices are highest. Not sure if it will, but it might give you a sense of relief that your cost of living, could be worse!

The high cost of real estate in the United States and around the world.

Whether you are looking for property in Los Angeles or your taste has a smaller price tag, Source Capital offers a number of services that may be able to help you. If you need funding down the road or immediately, Source Capital’s buyer friendly trust deed loan programs may be what you are looking for. Since they are not a traditional bank they don’t have to struggle through overwhelming red tape and time consuming obstacles.

Source Capital Funding, Inc. is a direct, private hard money lender that provides hard money loans and trust deed investment options throughout California and Arizona. Source Capital lends in Los Angles and  all major cities in California, including, Los Angeles, San Francisco,  Anaheim, Sacramento, San Jose, Fresno, Oakland, Bakersfield and Riverside and also in Arizona including, Phoenix, Tucson, Mesa, Chandler and Glendale. If you need a private hard money lender to fund your hard money loan or you want to work with Source Capital Funding as an investor to help supply loans, contact us  at 858.705.6144. You can also email us using this convenient online form.

You can learn more about Source Capital on our Google profile page, which includes reviews from some of our clients, investors and associated real estate professionals. A great way to stay up to date with us, including following this blog, is by liking us on Facebook and following us on Twitter. We are at the end of another week. With daylight savings time, we can enjoy longer days. We are also reminded that time is moving quickly, as we approach April, the fourth month of the year. Before more time goes by, consider making that real estate move you’ve been wanting to make. If you need help along the way, remember Source Capital is here to make your buying experience, as stress free as possible. Have a great weekend! –Sindi Somers