The 90 Day Flip Rule and Loan Terms

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Topics:

Real Estate News

Investor Uh-Ohs

Contractor Fails

Investing SCAMS

How do I calculate the costs of my deal?

Emails:

Arianna from Long Beach: “I keep hearing about the 90-day flip rule. What is it? How does it affect me as an investor?”

Dennis from Denver, “I’m confused by all of the terms of a hard money loan. Can you explain what they mean and how it works? How can I know what this is really costing me?”

ARV

CV

LTV

TLTV

Points

Rate

Term

 

Look for:

% of purchase funded

% of rehab funded

Funding limit (as a % of the total project cost)

Additional fees: Draw fees? (inspection – $125-150 is reasonable).

Loan processing fees?

Doc fees?

Blah blah blah fees?

 

Ken from Milwaukee, “You’ve mentioned on the show that you know your daily cost of a project. How do you calculate that?”