How does real estate flippers, get loans larger than the amount of the home thier flipping, to do repairs?
25 Jul, 2008
Posted by admin || Yahoo! Real Estate ||
There are a couple ways they do this. One is they write the sales price for the extra amount, in your case $25,000. So instead of a sales price of 100k it would be written up as 125k and in the agreement the 25k would be used as “repairs”. Or the other way is that the buyer will “flip” or do a simultaneous close and tie up the property while under contract and then sell it to someone else.
got to have a home before. equity established then the bank has something to take if you don’t pay up.
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