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REHAB LOANS If you are in the ugly home business of taking over properties, fixing it up and flipping for a profit, look at more than one lender. Usually it is for 1-4 unit residential properties, minimum 6 month term and 75% of the ARV (After-Repaired-Value). Consult your attorney and get several quotes; lenders have different criteria. I have personally seen variations of 6points and 3% to 5%. Remember though, it's not so much the cost of money that's important, it's the term. In other words, you can pay top rate with points and still turn a profit along as you don't hold the money to long. Get the property fixed up fast and flip it quick! Don't wait to get a few more bucks in the sale. The name of the game is to flip it, you may even want to wholesale the property.
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