Ready to transform your life through commercial real estate financing? Use the money of others to build wealth. BB Bookwork’s Inc specializes in helping real estate investors and small business owners with advancing their real estate portfolio. Building exponential wealth for them and their families.
Building Wealth by Fixing
Fix and Hold Fix and Flip
There is always a need to bring new life to older properties. The rewards are excellent, and the community is improved. Thousands property rehabilitation specialist invest time, skill, money, and intelligence into improving homes, apartment buildings, and commercial properties. The enjoy returns between 20% and 75% (sometime more).
How much does your bank give you in interest on your money?
Could you benefit from generating new income through fixing older properties? Talk to us. Let’s discuss how you can get started in this industry.
How Commercial Fix and Flip Financing Works
A fix and flip loan is a short-term loan that real estate investors use to purchase and improve a residential property. The purpose of the project is to increase the value and sell the property for returns of at least 20%. Commercial real estate financing.
Key features of this type of financing are:
- Short-term loans – typically 12-18 months.
- The collateral for the loan is the property.
- Typically, there is no penalty for paying off the loan balance early.
- Terms run between 60% and 90% Loan to project cost. Depends on a number of factors.
- Some lenders provide financing of 80% of purchase price and 100% of the renovation costs.
- Understand that the release of renovation costs my be phased and on a short window of reimbursement. It is best that we help you establish some cash flow tools.
Many lenders structure fix and flip financing as term loans or property lines of credit. Investors who have a good plan, decent credit score, and past success in the industry are more likely to qualify for a fix and flip loan.
Commercial Real Estate Financing Terms
- Loan-to-Value Ratio (LTV) — This ratio compares the loan amount with the property’s market value.
- Loan-to-Cost Ratio (LTC) — This ratio compares the loan amount against the total project cost.
- After-Repair Value (ARV) — This metric is just as it sounds. It represents the estimated property value of a project after an investor completes renovations.
Get Started today. Call 857-526-0400
