“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.
