Loans For House Flippers In 2020
Where are the loans for house flippers in 2020?
The national mortgage and housing market continues to cycle. We could definitely be in for some interesting times if the FHFA completes a rumored IPO. The company which owns 80% of Freddie Mac and Fannie Mae would be almost 10x larger than the current IPO record. That recently went to Saudi Aramco for $25.6B.
IPOs typically either drive new rash decisions to pump up revenues and drive away long term users, or new leadership becomes under such intense pressure to meet quarterly earnings that they push the envelope too hard without concern for the future solvency of the company. That could take the US mortgage market in either direction. Either loans that are so costly and awkward no one wants them. Or so loose that we experience a bankruptcy larger than most national economies in the world.
While we watch that, and how the 2020 presidential election shakes out, where are the loans for real estate investors and house flippers now?
Transactional Funding
‘Micro flipping’ or real estate wholesaling appears to be one of the biggest trends for real estate investors in 2020. Transactional funding can help investors wield incredible liquidity in getting in, out and paid on these deals fast, and making incredible cash on cash returns.
Hard Money Loans
Someone still has to fix and flip these deals. This is where hard money comes into play for rehabbers. We can only hope it becomes easier to get, and lenders return to true hard money lenders and higher LTVs.
Private Money
True private money could be big for rental property investors in 2020. This is not the ‘private money’ lenders who are actually hard money lenders just borrowing the title. But instead capital invested by accredited individuals and family offices. It can take work to get if you don’t have the network yet, but it is still out there.
Venture Capital
Many entrepreneurs are also turning towards positioning their real estate investment companies as tech startups in order to attract angel investors, venture capital and crowdfunding dollars. Just understand raising this type of money can be a huge distraction from just doing business. It is going to take a sizable investment in marketing, legal work and a team that excels at this.
FHA 203k Loans
These loans are designed for end buyers. A new expansion of the 203k loan gives home buyers up to $50,000 to renovate and repair their newly purchased homes in Opportunity Zones.. This may be a great match for wholesalers who can hand off their deals to retail buyers who will do their own updates.
How will you fund your deals this year?
Top Funding News
|
|
|
|
|
| Linked In | You Tube | Google+ |
"I want thank you for the excellent service I received from Best Transaction Funding.The quick response I received from your company from the beginning of the transaction and to the end was unbelievable. I also want to give a special compliment to you as well. You went to great lengths to keep me informed and gave my title company all the information they needed to complete a successful closing. I cannot express how thankful I am. Such service builds great working relationships. I will definitely recommend Best Transaction Funding to all my fellow investors. Thank You."
- Frank Olaitan, Real Estate Investor, MD
"I can't thank you and your company enough for providing funding for our latest project, and right at the last minute. You came through with funding in less than 24 hours and coordinated with the closing agent and attorneys like you had been involved with our project the entire way. I'll know exactly where to call for the funding we'll need for our next project."
- Dave Pricken, Real Estate Investor, NJ
"Thank you so much! I just had a talk with our Realtor on both properties and told him amazing things about your company!... Normally I rehab the houses and re resells them. I just don't have the patience for that work anymore. This [transactional funding] is such a better way for me and less stress."
- Steven Kupecz, Real Estate Investor, TN
"We want to thank you for the exceptional customer service you provided. No one comes close. We had contacted a competitor the same time we contacted your company. Your company responded with in a few minutes while the competitor has yet to respond weeks later even after multiple phone calls and emails. Thanks again for the unmatched customer service."
"We had looked into several transaction lenders for a couple properties we were trying to flip. Your company was the most responsive and had the best pricing. Even though we had logistics issues with the B/C lender, your company acted very professionally and handled our requests beyond our expectations."
"Thank you for your commitment to an excellent customer experience."
- Phoenix Properties, LLC, Ronald Destefani, Investor, PA
"I was studying on how transactional funding works and you guys had the best and most thorough explanations posted so I could fully understand the details in back to back closing. I'd already started setting everything up but your video confirmed that I'm on the right track."
- La'Donna Turnipseed-Scott, Investor, LA
"....a few months back, I happened upon a video, on your site, regarding the use of transactional funding with Hud properties; and I found myself replaying the video over and over because of the value that I saw in the message...it actually explained the process, step-by-step on how to submit a Hud deal by using transactional funding. Once I completed the video, my initial response was to take immediate action by duplicating what I had learned from the video into real time. So I did some research on properties in a market where I knew I had buyers; and put together a hud deal. I then located a realtor able and willing to submit my bid online and within a couple of days, to my surprise, received a call telling me that I had won – my very 1st Hud bid."
"To you I say, ”KUDOS to Best Transactional Funding and Thank you for providing the education and services to Real Estate Entrepreneurs like me. Please keep up the good work!'"
- T. A. Davis, Investor, NJ
"You each deserve high marks for your wonderfully quick response time to each of our questions and requests! You hit home runs with us! Your application system was easy to use. Our deal met your qualifications and every time Rob Kozak or any member of Mystic Properties, LLC phoned, we received a "real" person dialing back to speak with us.
Your patience and persistence were exceptional in dealing with our business interests. Thank you for such great customer service! We look forward to working with your staff, again, in the future. We like referring people to you, as us, our team would have missed-out on an excellent earning opportunity.
Your help negotiating with our title company made our back-to-back deal, finally happen. People noticed on settlement day how effectively and efficiently your part of the transaction was organized and executed. Again, thank you for truthfully being the "BEST" at what you do!"
- Diane McAdams, Mystic Properties, LLC, Real Estate Investor, Pennsylvania
"Boy, you guys are impressive! I can’t thank you enough for scrambling and getting my deal done at the last minute like that. You and your team were awesome!"
- Donna Bauer, The NoteBuyer Inc., Real Estate Investor, OH
"Thank you so much for working so diligently with me. Your services really are the "BEST". I look forward to working with you in the near future!"
- Ericka B., Real Estate Investor, CA
