Information for Investors
Red Heart Capital Loans offers short-term trust deed/mortgage investments for the private investor, at significantly higher returns than bank rates. Loans are secured by trust deeds (nearly always a first trust deed) on the borrower’s real property. Our loans generally do not exceed 65% to 75% of the appraised value of the property. In some cases, Red Heart Home Loans will do a second with their own money behind you which further enhances your position.
Our Services
Red Heart Capital Loans primary niche is dealing with Fix & Flip buyers — seasoned and experienced contractors/brokers/investors who specialize in acquiring fixer properties far below market value. These buyers/borrowers purchase bank owned properties and then have their work crews refurbish them.
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Once refurbished, the properties will either be refinanced using conventional loans, or sold at a profit. Our loans are typically due in ninety day, six months or one to two years. The properties are usually fixed up and sold within two to four months of completion. Red Heart Capital Loans will also lend to borrowers looking for cash out on residential or commercial property with sufficient equity.
Our Loans
All loans before they are sold will include appraisals by an outside licensed and bonded independent fee appraiser. Most of our rehab loans are for cosmetic repairs such as interior/exterior paint, carpets, and new cabinets. The typical rehab budget is between $20,000 to $50,000 and shall be held in reserve until repairs are completed.
Money for each item of work is released to the borrower only after our in-house inspector has evaluated the work to be done and has verified its completion. Red Heart Capital Loans provides a win-win situation for everyone. Our borrowers win because they make a profit on each transaction.
What is a Fix & Flip Loan?
Red Heart Capital Loans provides fix & flip loans for investors purchasing residential properties. Whether you are looking to buy and renovate a property or need a bridge loan, Red Heart Capital Loans is the easiest and fastest loan program in the state. We provide approval in less than 24 hours, we can close your loan in 48 hours, and do not require an appraisal. We've designed our loan program to provide clear loan terms upfront and save borrowers time and money.
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A fix & flip loan, also known as a rehab loan, renovation loan, or bridge loan, is a type of short-term financing specifically designed for real estate investors who aim to purchase properties, renovate or “fix” them, and then quickly sell them for a profit of “flip” them. These loans provide funding for the acquisition, rehab, and carrying costs of the property during the renovation period.
Fix & flip loans are also known as hard money loans, which refer to a type of financing that is provided by private individuals or non-traditional lenders rather than conventional financial institutions. Often used in real estate investing, these loans are secured by the value of the property itself. Qualification focuses less on the borrower’s creditworthiness and more on the collateral – the property being purchased and/or renovated.
Fix & flip loans are accessible to borrowers with less-than-perfect credit or who may not meet the stringent requirements of traditional lenders. These loans are known for their speed and flexibility, featuring a streamlined application process and quicker approval times in comparison to conventional financing. Fix & flip loans provide real estate investors with an alternative source of capital, allowing them to seize opportunities, fund renovation projects, and ultimately generate returns in the competitive real estate market.
Why do people use Fix & Flip Loans
Investors utilize fix and flip loans as a financial tool to facilitate their real estate investment strategies. Fix & flip loans enable investors to access the capital needed to purchase properties, cover renovation expenses, and carry out improvements necessary to enhance the property’s value and market appeal. The expedited funding allows investors to act swiftly in competitive markets and take advantage of time-sensitive opportunities. Overall, these loans provide investors with the financial means to execute their fix & flip strategies, leveraging their expertise and resources to generate profits in the dynamic real estate industry.
