Many people want to flip houses. One of the biggest struggles is having enough funds to do so. Banks are reluctant to give mortgages for rehabilitation projects or “flips”. And banks will not give funding to investors to pay for the renovations. So many potential investors never even get started. But Typhoon International has a solution for that. We will lend you the money!
The best way to illustrate our private lending process is with a simple example. In this example, a couple who has a savings of $20,000 wants to buy a house worth $100,000. They have looked at comparable sales of similar homes in the area and have determined that a newly rehabilitated home would sell for $160,000. But they need $20,000 to buy the home, and another $20,000 for renovations. If they just had $40,000 they could make a $40,000 profit!!! – minus some fees for closing the real estate transaction of course.
Typhoon international will lend them up to 80% of the purchase price and lend them money to rehabilitate the property. Typhoon International will charge a 3% initial fee on the loan and 1% per month interest. The loan will be secured against the property.
The couple completes their renovation in 4 months, and sells the home for $160,000 within two months.
The couple makes a profit of $28,500!
|Loan from Typhoon International||$100,000|
|Down Payment to Typhoon International||$20,000|
|Typhoon International Lending Fee||$3,000|
|Interest on Loan (6 months)||$6,000|
|Total Loan Cost||$9,000|
Financial Analysis of Flip
|Real Estate Closing Costs||$2,500|
|After Rehabilitation Value of House||$160,000|
|Total Investor Profit||$28,500|