What are the basic steps of closing on my loan? Alli Parkinson
Here is an overview of the process of flipping a house and closing on the loan:
Find a property - a great way to do this is with our Investor's Edge platform! Best practice is to validate the property and surrounding home values to ensure you are getting the best deal.
Value the property - use our Property Value Analysis worksheet in your Member's Area to estimate the ARV of the property. Estimate the repairs needed on the property
Leverage our built in tools to estimate the repair costs
Use Advanced Deal Analysis (ADA) to determine offer price and estimated profit, and to check for any cash-to-close.
Submit offer to seller. Use the Proof of Funds letter and sample contracts in your Member's Area to make an offer on the property.
Get property under contract. The contract must be assignable.
Complete a loan application. We will want to ensure we have 3 active and 3 sold comps that demonstrate the ROI to protect your risk!
Order Desktop Evaluation.
Get Desktop Evaluation results back.
Book Virtual Walkthrough with The Investor’s Edge Project Manager and your licensed general contractor. Contractors are required to be present for the walkthrough and licensed to do the work.
Get required scope of work from DHM Project Manager The scope of work will be created during the virtual walkthrough with the input of the contractor, borrower, and Project Manager.
Using the Scope of Work created during the walkthrough, get an initial bid from your contractor and compare to your initial rehab cost estimate above.
Order onsite evaluations.
Get Property Workup results back.
Discuss with Advisor loan programs and viability.
Order termite inspection and any other required inspections. These inspections can be ordered at any time, although some may elect to wait until viability of the loan is confirmed.
Initiate finalizing of contractor bids with DHM Project Manager and Contractor. This includes pricing meetings and verifying that license and insurance is valid throughout project duration.
Credit and Background checked.
Sign Letter of Intent (LOI).
Processing (Inspections verified, title docs are ordered).
Close.