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Several times in life, we see that there are few people who do not start a business, just because they do not have enough capital with them. The real reason behind it is that they do not know about the available options. With the help of flip and fix program, one can invest at least in real estate. In simple words, we can say that flip and fix line of credit is a type of loan different from the conventional loan.

It helps the investors that invest in real estate. This process helps the investors in borrowing the capital for the purchase and for the renovation of any property. They can return the loan once they have flipped the property. One does not have to invest in it, as the loan of this category gets sanctioned with zero capital. You can just borrow the money and then can use them as the capital. The fix and flip programs are of two types. Single flip and fix program and then fix and flip line of credit. Following are the features of fix and flip line of credit.

• This type of credit lines is generally for the investors that are experienced and have spent quite a few times in this field. This makes it quite similar to the real estate investor line of credit. If we talk about the special experience, then there should be a fix and flip program that he has already done in the past two years. The reasons that this credit line is given to the experienced investor as that it is easy to trust them. Giving this credit line to a non-experienced or new investor would be risky.

 

• The liquidity required for this credit line is 20% and the minimum requirement is of 125,000 dollars depending on the experience and the way of working of the investor. One should be able to do at least one flip and fix in 24 months. You won’t find this in the real estate line of credit.

 

• The rate of this credit line is fixed and it should the interest. The loan size may vary from 50,000 dollars to 2, 50,000 dollars.

 

• The maximum FICO should be 620 and the maximum LTV should be 75%. It totally depends on the repair value.