“Refinancing Hard Money Loans for the House Flipper”

“Refinancing Hard Money Loans for the House Flipper”

 

They say I understand the language. Not sure that is 100% true. But I do understand that these hard money lenders want their clients to either sell the properties they have financed or refinance out of these loans so that their money can be loaned out again and again.

 

House flippers all want to get paid off in 6 to 12 months, but many times that doesn’t happen and these loans need to be renewed which they really don’t want to do. But to keep the relationship it is necessary.

 

Depending on credit and income this isn’t always easy. Some of these folks have large amounts of dollars going through their checking accounts, but the tax returns don’t always reflect the same kind of numbers. Fortunately we have a mortgage product for these clients. There is a solution. We can do a “Bank Statement” loan and not show tax returns at all. Interest rates run between 6% and 8% which is much better than the 12% to 14% for the hard money loan.

 

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Comment balloon 4 commentsJoe Petrowsky • November 02 2016 01:18PM

Comments

Joe let's not forget the acquisition costs for Hard Money loans vs. your loan 3-8 point difference too, Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) 11 months ago

Good morning,, Joe Petrowsky that's ideal for the investor who starts with a hard money source....and in this area, they get 14%....one of our builders is a hard money guy and loans to small builders who tanked when the market crashed.... if they stop paying, he takes the house and finishes it.. makes a larger profit!

Posted by Barbara Todaro, "Franklin MA Homes" (RE/MAX Executive Realty ) 11 months ago

Good morning Joe. Most are unaware of "Bank-Statement" loans and turn to hard money loans! Enjoy your day!

Posted by Wayne Martin, Real Estate Broker (Wayne M Martin) 11 months ago

Good morning Joe. Never knew of this product but it sounds like a great solution when needed.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) 11 months ago

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