Walnut Street Finance

Fixing up a home and flipping it for a profit is a great way to generate income. But how does someone new to real estate investing get started? The reality television shows make it look so easy, but a major part is missing from their 30-minute airtime: financing. Since you probably don’t have hundreds of thousands of dollars just sitting around for a rainy day, how can you get the starting capital you need? Simply put, you should look at a fix and flip loan from a hard money lender. For beginners, it’s easier and quicker to get than you might think. What is a Fix and Flip Loan?   Sometimes referred to as a rehab loan, a fix and flip loan can help you purchase, refinance or renovatean investment property. It is a type of hard money loan, meaning the lender focuses on the value of the property you wish to acquire (or have already acquired), rather than focusing on your credit score and income. What are the Advantages of a Fix and Flip Loan? The convention...

This is sort of a trick question. Can you get a hard money loan for a single-family home, or a multi-family home, or a condo conversion? The answer is yes. The answer is also no. Yes, of course you can get a hard money loan for these types of properties — that’s what they were mainly designed for. If you couldn’t, real estate investment would be left to those who are already incredibly wealthy, and don’t need a loan in the first place. More succinctly, nearly no one would be able to make a living from real estate investment. However, most lenders will not approve a hard money loan for the aforementioned types of properties if they are occupied by the owner. The assumption with hard money loans is that the purpose of the loan is not to renovate or alter the primary residence of the borrower. What Are the Rules Behind a Hard Money Loan Hard money loans are ideal for certain types of investment properties — especially if you’re looking to resell the home quick...

As the name suggests, construction loans are typically given to investors who are planning on building a completely new house that will be non-owner occupied. So, when it comes to getting a construction loan for an existing house, there are two different ways you can qualify (but both ways require that you don’t have an emotional attachment to the house in questions): 1.       Your interest isn’t the existing house, but the land it rests on 2.       Your interest is only in the exterior of the house Qualifications for a Construction Loan for an Existing House The most common reason to get a construction loan for an existing home is because the home itself holds no potential value, but the land it sits upon is perfect for new construction. A hard money lender will help you finance the demolition of the house, as well as give you the capital you need to build a new home in its place. Another reason to get a construction ...

When you have a new construction project or a serious renovation coming up, financing is obviously an essential part of the plan. But there’s a catch: long-term financing won’t be available until the project is stabilized. So how do you get the capital you need to get your project started while waiting for permanent financing? You might want to look into a commercial construction loan from a hard money lender.   What is a Construction Loan?   A commercial construction loan is designed for the short term — they are typically for 6 months to a couple of years in length. They are also interest-only loans, though that interest is often bundled into the loan itself. Construction loans are funded through installments called draws, that are based on a predetermined milestone schedule, and they are repaid when the work is done. A major benefit of getting a commercial construction loan from a hard money lender is the speed with which you can close — norma...