
Amid the post-pandemic housing boom, investors are important players in the real estate market – and catering to their needs poses an opportunity for savvy loan officers.
According to the National Association of Realtors, in April 2024, investors and second-home buyers represented 16% of transaction volume. A slight dip from 17% in April 2023, but it’s still a significant portion of the market.
Simultaneously, home prices continue in their upward trajectory, and mortgage rates are still going up, two factors that are squeezing housing affordability. According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (NAHB), housing affordability remained near record lows in the fourth quarter of 2023.
Enter LendSure’s Fix and Flip Home Financing Program, ideal for investors who see an opportunity in today’s housing market. This program is tailor-made for real estate investors who want to leverage the purchase and renovation of a property. This short-term loan solution was created for entrepreneurs who intend to exit with the sale of the property or to refinance.
While home-flipping is still attractive to many investors, borrowers are looking for an out-of-the-box solution for their unique needs. LendSure’s Fix and Flip program offers up to 85% of the purchase price and up to 100% of the construction cost on some loans. Here’s a common scenario: Say an investor pays $375,000 for a property and expects to spend $125,000 on renovations. LendSure would loan up to 85% of the acquisition costs, or $318,750, and up to 85% of the renovation costs, or up to $106,250. This video can give you a better look at a loan scenario in action!
This financing option is particularly advantageous as the U.S. housing stock ages, offering opportunities in properties requiring renovation. Moreover, there’s a shortage of homes for sale and for rent – so whether an investor plans to sell a property after renovations or keep it and rent it out, the Fix and Flip program fits the bill.
Investors need to work with a trusted lending partner. LendSure focuses on their best interests through a personalized, tailored approach. Account Executives can connect with their investors to help them diversify their Investor portfolio.
Benefits For Brokers
Offering Fix and Flip loans not only meets the immediate needs of investors but also fosters long-term relationships. Satisfied investors are likely to return to fund more projects, leading to repeat business down the road. Plus, these successful transactions can also generate referrals from other flippers looking for reliable financing. By becoming a go-to resource for Fix and Flip loans, you can attract a steady stream of clients and grow your network.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently-owned property.
Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.