When you see the term “experienced-based funding,” it means that in order to secure financing to expand your single-family, or fix-n-flip business, you will need to show the lender that you know what you are doing. You need to provide proof of your experience in the area of your investment strategy and in the local real estate market.
If your investment strategy is to build and rent or build and sell, the lender will want to know that you have experience successfully building and selling homes in the neighborhood or area you are planning to build in. If your strategy is fix-n-flip, your lender will want to know that you have experience in renovation and know how to price the home so it will sell in the neighborhood it is in. If your strategy is fix-and rent, the lender will want to know if you have experience renting or managing a rental or if you plan to partner with a company that has this experience.
As Samantha Goldberg, at Arbor.com reminds us, borrowers with understanding of the market and what types of property will rent at what levels will be attractive to lenders. Be prepared to support your investment strategy with a plan and experience.
She also suggests that securing financing with a lender you have done business with before is a good idea. Develop a long-term relationship with your lender, showing that you pay back your loans.
I’d like to be that lender. Send me an e-mail and I’ll see what funding solutions REI Capital Resources can match with your needs. We are always “focused on funding your success.”
REI Capital Resources Residential Construction Loan Program
We offer asset-based and experience based loans for residential construction on the following terms: Min FOCI 650, appraisal required, up to 90% of cost of lot + build, Up to 100% of construction costs if lot is free and clear, Max of 70% ARV, interest rates starting at 8.25%,and points as low as 3.5%.
Don’t forget, give me a call or send me an e-mail.
W – 512-213-2271