November 24, 2021

Will the loan cover repairs if I am trying to fix and flip a property?

What are fix and flip loans? Flipping a property usually means buying a building for renovations purposes and selling it to get some profit. In most cases, this method is used for homes, but it’s suitable for all types of properties. Fix & flip loan is short-term, implies high interests but cover the cost of purchase and renovation. Also, with this type of loan, it’s possible to buy “fixer-upper” properties called distressed properties. Experienced flippers usually buy a run-down house in a good neighborhood, make aesthetic improvements and then sell it at a premium price and, of course, make a good profit. In most cases, hard money lenders are ready to cover up to 70% of costs. However, with LBC Capital, you can get up to 85% and fast deal closing. Types of fix and flip loans Professional real estate investors may have access to immediate financing that they use […]
November 18, 2021

How to get a proof of funds letter?

Getting a loan from a hard money lender is much easier and faster than getting it from the bank. However, before being approved for a hard money loan, private lenders require you to provide plenty of documents to see if you qualify. Proof of funds letter is a standard document that money lenders request in California. So, what is that, and how to get it? What is a proof of funds letter in real estate? Proof of funds letter is an official document that confirms you have sufficient funds to close a deal – to repay the loan. If you are a homebuyer, this statement is a confirmation you can make a down payment and pay closing costs. Still, big purchases or other financial transactions require big money, and that’s where the proof of funds letter (also known as the POF letter) comes in handy. Proof of funds letter is […]
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