Fix and Flip Loans California

Hard Money Rehab Loans & Fix and Flip Financing for California Real Estate

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Fix and Flip Loans – Hard Money Rehab Loans – Financing a House Flip

North Coast Financial provide fix and flip loans (hard money rehab loans) in California and have over 40 years of experience. Based in San Diego, California, we offer quick approval and funding, competitive rates and professional service. North Coast Financial have proven to be reliable fix and flip lenders and earned many satisfied repeat customers. Contact North Coast Financial now and get your hard money rehab loan funded fast.

Fix and flip loans (also know as hard money rehab loans, investment property rehab loans or house flipping loans) are short-term financing tools that enable a real estate investor to obtain the necessary capital to acquire, improve and resell a property for profit. Fix and flip financing is available from hard money lenders but not available from traditional lenders such as banks. Financing a house flip is a quick and straightforward process for an experienced hard money lender like North Coast Financial.

North Coast Financial are California fix and flip lenders providing fix and flip loans in Los Angeles, San Diego, Orange County, Ventura, San Francisco Bay Area, Sacramento, Riverside, San Bernardino and various other areas in the state of California.

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Why Choose North Coast Financial?

Fix and Flip Loans Recently Funded by North Coast Financial

Rehab Loans – House Flipping Loans – Investment Property Rehab Loans

There are numerous different names for a fix and flip loan but the purpose of the loan remains the same. Allowing a real estate investor to borrow funds for a short-term of time in order to purchase a property, make repairs and improvements and then sell the property quickly for a profit. When applying for fix and flip financing, the lender may consider the following about the borrower:

  • Experience in real estate and experience in fix and flip projects
  • Purchase price of the subject investment property
  • Amount of cash reserves available for holding costs and rehab costs
  • Estimated after repair value of the property
  • Estimated cost of the renovation

Hard money rehab loans are either based on the current value of the property or the after repair value (ARV). Many fix and flip lenders prefer to loan on the current value of the property as this reduces their risk in the event that there are issues with the rehab of the property, the estimated after repair value was incorrect or the real estate market begins to decline during the rehab process.

Loan to Value Ratios for Fix and Flip Loans

Loan to value (LTV) ratios for house flipping loans can vary based on the programs offered by the fix and flip lender and the needs of the borrower. LTV’s generally range between 65-75% of the value of the property as lenders require that the borrower has some skin in the game with a sufficient amount of equity invested in the project.

Many novice real estate investors attempting to obtain fix and fix funding for an investment property often request 100% financing for a project.  They incorrectly assume this kind of financing is available usually because of misinformation from real estate gurus hoping to sell expensive education programs. Hard money lenders do not want to fund requests for 100% financing as this would put all of the risk on the lender. When financing a house flip, hard money lenders require the borrower to have their own equity invested in the project.

Contact North Coast Financial now and get your fix and flip loan funded fast.

Article: 5 Major Mistakes to Avoid When Flipping Houses

North Coast Financial Fix and Flip Loan Programs

  • Fix and Flip Program 1

Loan Application Approval Timeline Same day approval available
Time to Fund Loan As few as 3-5 days if needed
Property Types Single family, multi-family, commercial, industrial
Loan Amounts $30,000 – $3 Million+
Loan Terms 6 to 12 months with longer terms available
Lien Position 1sts & 2nds
Loan to Value (LTV) Up to 75% of purchase price
Fees No appraisal fees (in most situations) and no hidden junk fees
Fix and Flip Interest Rates and Points Please contact us now for information on current rates and points
  • Experienced Fix and Flipper Loan Program

Real estate investors with experience on at least 3 successful fix and flip projects may qualify for financing up to 75% LTV of the purchase price of the property as well as financing for a portion of the rehab costs. Contact North Coast Financial now for additional information on this program.

More Information on Fix and Flip Loans

The process of applying for a fix and flip loan is simple and straightforward. Real estate investors who wish to obtain preapproval need to complete a standard 1003 loan application and submit to North Coast Financial for review. Upon approval, North Coast Financial will be able to provide the real estate investor with a preapproval letter to submit with their offers. The preapproval letter will be contingent on the physical inspection of the property.

Real estate investors who are currently under contract on a property should contact North Coast Financial immediately with information on the subject property, project overview and submit a completed 1003 loan application. Once the financing has been approved, North Coast Financial will contact the escrow company and begin arranging the funding for the fix and flip loan.

As a direct fix and flip lender, North Coast Financial is able to fund fix and flip loan requests very quickly, within 3-5 days if necessary. Funding fix and flip loans within days is usually not needed unless another lender fails to provide funding at the last moment and a new hard money lender must provide financing immediately in order to save the deal. Most loans are funded within 2 weeks.
The majority of auctions do not allow for financing and will only accept cash offers. If an auction does allow for financing and enables the transaction to go through escrow with title insurance, North Coast Financial will be able to provide the loan.

If the auction does not allow for financing, the real estate investor can pay cash for the property and then come to North Coast Financial for a cash out refinance in order to raise funds for the rehab costs or just free up capital to invest in other projects.

The majority of fix and flip loans are written for 12 months or less. Longer loan periods are available but most real estate investors who are flipping houses are trying to complete the project and the sell the property as soon as possible. This reduces the investor’s holding costs (loan costs, property taxes, utilities, insurance, HOA payments, etc.) which will increase their profit on the project.