Real Estate Property Criteria
At Loans 4 Investors we offer fix and flip financing, new home construction loans and more! We do have a sweet spot for our favorite type of properties which I have listed below. We do approve deals outside our sweet spot on a case by case basis so give us call and lets talk about your project.
Loans 4 Investors’ favorite types of properties to lend on are
- MUST be non-owner occupied
- We lend on 1st and 2nd position mortgages. (not 3rd and so on…)
- Gap Funding – if you have a 1st loan ready to go but short on your down payment we often come in as a 2nd lien and cover some or all of the down payment for you.
- Single family residential 1-4 units
- Short term loans – Typically 3-12 months
- 55%-70% LTV of the ARV depending on area and borrower. Our sweet spot is Texas and Yes, for great deals and great borrowers we lend Nationwide!
- The ARV (after repair value) will be determined by an appraisal and/or multiple BPO’s that we order and are paid for by the borrower.
- Property should be in a major city or a suburb of a major city.
- Properties must be in stable and preferably growing neighborhoods.
- Loan amounts from $10,000 to $1,000,000 is our sweet spot. We will go higher if it’s within the norm for that city/neighborhood and we feel really good about the project. Also for higher end projects our gap funding program is very popular.
- No environmental problems or any other major drawbacks that might keep the property from selling.
- Property ARV should be priced near or at the median price for that neighborhood. We do NOT lend on “Luxury” properties that are outside of the norm for the area.
- Our programs are specifically designed for real estate investors primarily for fix & flips and new home construction. We do NOT lend on owner occupied homes.
- Properties that are not in our “sweet spot” will be considered on a case by case basis.
Things that affect property value and resale ability
- Is this property a fix and flip, new home construction or rental property? And is that the norm for what is found in this neighborhood?
- Is the property in or near a flood plain?
- Consider power lines, trains, nearby commercial development and anything out of the ordinary
- Any challenges with neighbors or neighborhood?
- how do the surrounding properties look?
- Is there anything that is going to hinder your ability to sell the home?
- Comparable Sales – get strong comparable sales for the area with this home’s specific criteria.
- If you don’t have access to MLS then get a Realtor to run a CMA or BPO for you and ask for a 30 day sales price for the ARV (after repair value). This will give you a realistic view of your future sales price and it’s more likely your appraisal will come in around the same price or better.
- Want to be really sure you have a handle on the ARV? Get 3 different and unrelated Realtors to run numbers for you to make extra sure your ARV is on target!