How You Are Going To Afford That New…
Renovation Specialist Expert Companies & Financing
Is there a way to afford a high ticket house repair?How to afford to get your repairs done is to use vendor financing. Each task financed from of each specialized company. Many of these renovation specialty companies are providing either in-house financing. (borrowing from the company)
Or in-house brokering (they arrange for commercial purchasing credit for you) to cover all, or any lesser amount, of your project costs.
Borrowing Terms Are Better
The terms are much longer than you’ll need for even a rent to own exit strategy. If you rent to one tenant with a two-year option to buy and it doesn’t work out you can put another in for two years and still not be half way through your payments. A private loan can usually only have a 5 year term for a tight fit using that strategy.
These credit lines are easier to get than a bank loan and half the interest of a private money construction loan. Repeat customers are offered bonuses and discounts too.
The company I recommend operates in the states of Ohio, Michigan, and Illinois. With some research and word of mouth, you should be able to find similar companies in your area. They will also be motivated to provide financial help to get their crews working full time, all year round. Ask around. You’ll see.
Shows Skin In The Game
The best advantage of using vendor finance to fix and flip houses is lower LTV ratio. Private lenders want you to show skin in the game but why? It isn’t about if you have a bank account. They want to see as much of the financial burden on someone else, anyone else. They hold first position liens so the repair companies are junior loans.
More Simultaneous Loans
Another benefit to using specialty repair contractors is the increased debt ceiling. Their financing departments will authorize more loans at one time to you or your entity. A bank will cut you off after a few loans have been opened. They just love investors who can cash out at resale and pay them off early. They would rather have the next job than a bit of interest income. Fix and flip investors need this.