I was approved for a first time buyers loan, 100% financing. The company I am using has lenders and real estate agents. They happen to specialize in foreclosures.
Is it okay to tell them what I am doing, so they can help me find what I am looking for?
How do all of these investors continue to get loans, if they are paying off the loan right away?
“Is it okay to tell them what I am doing, so they can help me find what I am looking for?”
– We don’t know if you should tell the lender because WE don’t know what you are doing!
-= hat is it that you are doing and looking for?
“How do all of these investors continue to get loans, if they are paying off the loan right away?”
– Not sure what this means and what the question is really asking…
Keith
You are right!! My question did not make sense! ???
I think I was typing and sleeping at the same time. My question was, lenders lend money, because they make money back from the interest. If I continue to flip properties, why would they keep wanting to go through the trouble of lending me money, if they know that I am going to turn around and re-sale the property right away, and they won’t get thier interest?
There are lenders out there that specialize in fix and flips! also look at the pre-pay on the loan!
My profit keeps getting smaller and smaller, as I read everyones advise… >:(
Is prepayment generally a large amount?
Hard pre-pay you will pay it if you sell or refi.
Soft pre-pay only if you refi if you sell you don’t pay!
So make sure its a soft
Also check for lenders in your area that do fix and flip loans
Lender’s make money on the front end with origination fees and other “junk fees”, also. If they can make a 1% loan origination fee in July and you fix and flip in August, they’ve made 12% annualized plus the one month interest on the principal amortized for 30 years (about 99.4% of the first payment)…do the math, they love you getting out early!
Keith