Real estate selling, investing, and renovating can all be lucrative ventures, even more so with the right funding. For property investors looking to renovate, buy, and sell properties fast, fix-and-flip loans are an excellent way to help get you started. This is where New Silver comes in. New Silver, a trusted partner for real estate lending, offers fast and flexible fix-and-flip loans designed for the specific needs of real estate property investors.
In this blog, we’ll explore New Silver’s loan options and how these solutions can help you find success in your real estate endeavors.
Key Takeaways:
New Silver’s Fix-and-Flip Loans: New Silver provides fast and flexible fix-and-flip loans tailored to real estate investors, allowing them to finance property deals and renovations with short-term, asset-based loans designed for fast turnarounds.
Short-Term Financing Focus: Fix-and-flip loans, a type of hard money loan, are ideal for property investors looking to buy, renovate, and resell properties within 12-24 months, with loan amounts based on the property's after-repair value (ARV).
Competitive Terms and Rates: New Silver provides competitive interest rates from 9.5% to 11.25%, flexible loan amounts up to $5 million, and minimal requirements, making it accessible to investors with varying levels of experience.
Quick and Flexible Application: With New Silver, investors benefit from an easy online application process, quick approvals, and the ability to access capital fast, allowing them to act quickly on profitable deals.
Fix-and-Flip Loans: What Are They?
A fix-and-flip loan is a kind of short-term financing created for property investors who wish to buy, renovate, and resell real estate properties for profit. These loans often cover the expenses associated with purchasing the property and funding its renovation, allowing investors to focus on the rehabilitation and resale process.
Fix-and-flip loans are an ideal option for investors who want to renovate, resell, and close deals fast, often within 12-24 months. The speed and flexibility of these loans make them a favorable choice for real estate professionals and house flippers.
Fix-and-Flip: A Type of Hard Money Loan
Fix-and-flip loans are a specialized form of hard money loans designed just for real estate investors who want to buy, renovate, and resell properties for maximized returns fast.
While these loans share primary characteristics, like asset-based approval criteria and short-term financing, fix-and-flip loans are designed for more specific investment strategies, setting them apart from traditional loans and other hard money loan options.
Here are a few examples of what fix-and-flip loans are meant for and how they differ:
Short-Term Nature and Asset-Based Financing
Fix-and-flip loans and general hard money loans are short-term financing options. These loans often range from 12 to 24 months, allowing investors to complete their projects and repay the loan within a shorter period.
Unlike traditional loans that rely on the borrower’s credit and finances, hard money lenders focus on the value of the property itself.
Designed for Property Renovation and Resale
What sets fix-and-flip loans apart from other types of hard money loans is their purpose. Fix-and-flip loans are created to fund the purchase and rehabilitation of a property, making them perfect for investors with the goal to boost a property’s value through upgrades and repairs.
The goal of a fix-and-flip is to aid investors in completing the rehabilitation and reselling of property for a faster profit.
Interest Rates and Loan Terms
While fix-and-flip loans are a type of hard money loan, they often come with more flexible terms geared toward short-term property projects. Both loans often have higher interest rates than traditional mortgages, ranging from 9.5% to 11.25% for fix-and-flip loans.
This is because these loans are often considered to be higher risk for lenders.
Differences from Traditional Loans
Unlike traditional loans, which are often long-term and reliant on the borrower’s income, financial stability, and credit history, hard money loans (including fix-and-flip loans) are asset-based, meaning the value of the property itself is the main factor for approval.
Why Choose New Silver for Fix-and-Flip Loans?
When financing your next fix-and-flip real estate project, New Silver offers several loan options created for specific real estate investing ventures. With competitive rates and flexible terms, New Silver’s loan options are designed to meet the demands of property renovation and resale, making it an ideal partner for property investors.
Continue reading to discover how New Silver stands out as a leading lender option for real estate investors.
Fast approval process: New Silver offers an easy online approval process that can take as little as five minutes, meaning investors can act fast when they find a great deal.
Competitive interest rates: With interest rates starting from 9.5% and up to 11.25%, New Silver provides competitive rates that help keep costs manageable for investors.
Flexible loan amounts: Investors can access up to $5,000,000 in financing, allowing for flexibility in project scope and size.
No hard credit pull: New Silver doesn’t require a hard credit check during the initial application, making it easier for investors to explore their loan options without impacting their credit.
Key Features of New Silver’s Fix-and-Flip Loans
New Silver’s fix-and-flip loans offer a suite of features that cater to real estate investors looking for short-term financing. These loans are structured to cover property buying and renovation expenses, with flexible terms that accommodate different project sizes.
Loan-to-After-Repair Ratio (ARV): New Silver’s fix-and-flip loans can cover up to 100% of construction costs, depending on your situation and specific factors. This coverage makes these loans ideal for projects where extensive renovations are required. The total loan is based on the property's ARV, allowing investors to borrow based on the future value of the property.
Interest-Only Payments: Many of New Silver's loans offer interest-only payment options during the renovation phase, helping reduce the financial burden until the property is sold.
Short-Term Financing: These loans are designed for fast turnovers, with loan terms often ranging from 12 to 24 months. This is ideal for investors looking to complete their projects and resell the property quickly.
Minimal Requirements: New Silver offers loans with a minimum credit (FICO) score of 650 and a minimum loan amount of $100,000, which makes it accessible to more investors.
How to Qualify for a Fix-and-Flip Loan with New Silver
Qualifying for a fix-and-flip loan with New Silver is straightforward. The process requires that property investors must meet some basic criteria designed to make sure they can manage the buying and renovation of the property.
Below is a breakdown of these requirements.
Minimum Credit Score
New Silver requires a minimum credit score of at least 650. If the borrower lacks this experience and doesn’t meet this threshold, they can add a guarantor or co-borrower with a credit score of 680+. This is helpful for those with no prior fix-and-flip experience.
Property Eligibility
The loan is available for different property types, including multi-family homes (1 to 4 units), single-family homes, and condos. The property must meet certain value thresholds: the as-is value should be at least $100,000, and the after-repair value (ARV) should be $150,000 or more.
Loan Amount
Investors must apply for a minimum loan amount of $100,000. This makes sure that the project is of a significant scale and involves enough capital to justify a fix-and-flip project.
Experience
While experience is not required, it can help the approval process. For those applying for larger projects or ground-up construction, New Silver prefers borrowers with at least two previous similar projects.
Non-Owner-Occupied Properties
New Silver only finances business-purpose loans for non-owner-occupied properties. This means you cannot use these loans for your primary residence; they are for investment purposes.
The Application Process
One of the biggest benefits of working with New Silver is their easy online application process. Investors can fill out an application and receive approval within minutes, helping reduce the time it takes to secure funding.
Once approved, the closing process can take as little as five business days, although it may take up to 10 business days depending on the location and other factors.
Advantages of Fix-and-Flip Loans for Real Estate Investors
Fix-and-flip loans provide several notable benefits for property investors aiming to maximize profits through property rehabilitation and resale. With a structure created for short-term projects, fix-and-flip loans are a great solution for those looking to complete real estate projects fast.
The benefits of fix-and-flip loans from New Silver include, but are not limited to:
Quick access to capital: Investors can act fast on lucrative deals, avoiding the drawn-out approval processes of traditional lenders.
Flexibility: The loans can be personalized to fit the unique needs of each real estate project, whether it’s a minor renovation or a complete rebuild.
High profitability potential: By covering renovation expenses and using after-repair values to determine loan amounts, these loans help maximize returns on investment (ROI).
Conclusion
For real estate investors looking to fund their next fix-and-flip project, New Silver’s loan options provide a flexible, fast, and competitive solution. With quick approvals, desirable terms, and strong financing options, New Silver stands out as a valuable partner for investors.
Ready to explore your fix-and-flip loan options? Start your application online with New Silver today!
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