FREQUENTLY ASKED QUESTIONS
What’s the most I can borrow for a fix-and-flip project?
Planet Renovation Capital offers private money loans up to $1.5 million
How fast can I close a fix and flip loan?
Your fix-and-flip loan may close as fast as seven days after you complete the online application and provide all required information.
Who gets your best rates on fix-and-flip loans?
Flippers with the most experience and highest credit scores get the best rates on Planet Renovation Capital fix-and-flip loans, which some people call private money loans. You may qualify for the lowest rate if you flip at least five projects every 36 months and have a credit score of 720+.
How many house flips do I need to have under my belt to get your best rate?
To get the best rate on a hard money loan to fund your fix-and-flip, you must have done at least five flips in the last 36 months and have a credit score of 720+.
How can I get lower points and a lower rate on a fix-and-flip loan?
In general, the more you put down, the lower your rate and points on a fix-and-flip private loan. To get the best rate on a hard money loan to fund your fix-and-flip, you must have done at least five flips in the last 36 months and have a credit score of 720+.
Can I get a proof of funds letter or a line of credit letter?
Yes, we understand how competitive today’s real estate market is. Planet Renovation Capital will speak with real estate agents or sellers to verify funding if you need that help to acquire properties.
How much money down do I need to close a fix-and-flip loan?
As little as 10%.
What up-front fees do you charge?
Planet Renovation Capital has two upfront fees for our fix-and-flip loans: Budget review and underwriting fees. The settlement agent or attorney and the appraiser will also charge for their services.
What documentation do I need to get approved for a fix-and-flip loan?
A description of the property, the work you’re doing, estimated values, and costs. For your first loan with Planet Renovation Capital, we’ll also need information about you and your property flipping experience.
What is the required credit score to get a fix-and-flip loan from Planet?
Can I put 10% down a fix-and-flip property?
Yes, typically, if you meet credit score, project scope, and experience requirements, you can put down as little as 10% on your fix-and-flip property.
What is your As-Is loan-to-value ratio (LTV), and what is the After-Repaired Value (ARV)?
90% As-Is, 70% ARV.
What type of appraisal do you require for your fix-and-flip loans?
A full interior appraisal with three As-Is and three After-Repaired comparable properties based on project details is required for Planet Renovation fix-and-flip hard money loans.
How do you deliver the funds to close my fix-and-flip loan?
Outside New York, we wire funds to your closing agent. In New York, we wire funds to the closing attorney.
How do you deliver draws?
We send the funds to you or your general contractor. Draws typically take 24 to 48 hours.
Can I have my first three months’ payments funded via reserves?
We have options to fund your first three payments, depending on your deal structure and experience as a flipper.
How many months of interest reserves do I need?
Typically, three months. Reserves can be non-liquid, for example, a retirement account.
How do I get my repair money to flip a property? How does the draw process work when I flip a property?
You request a draw, and we send the appraiser to inspect your work ASAP. Once the appraiser sends in the inspection report, PRC reviews and approves the draw amount. Next, you send us a wire request form, and we send the funds to you or your general contractor. Draws typically take 24 to 48 hours.
How fast can I get the repair money after I request each draw?
Typically draws are completed in 24 to 48 hours.
Can you advance me the repair money at the closing to start my house flipping project?
Yes, if you meet criteria based on your strength as a borrower and the project plan, we may advance money for your first phase of repairs.
Can the scope of work change during the time of the loan?
Scope of work often changes in a fix-and-flip due to supply chain problems, cost of materials, or what you find out when you open up walls. With approval, you may change the scope of your project to allocate funds differently, but you cannot change the total amount of your loan.
How do I change my scope of work?
Planet Renovation Capital will ask you to send a revised scope of work and discuss ways to adjust the project plan.
Is there a pre-payment penalty?
No, Planet Renovation Capital does not charge a pre-payment penalty for fix-and-flip loans.
Can I extend my fix-and-flip loan after 12 months?
Typically, you can extend for six months, as long as your loan payments, taxes, and insurance are current and you have an approved exit strategy.
How is the payment calculated on my fix-and-flip loan?
Planet Renovation Capital offers fixed-rate, interest-only payments based on the total loan amount.
How many fix-and-flip loans can I get at one time?
You can run up to three fix-and-flip projects with funding from Planet Renovation Capital.
If I’m doing a fix-and-flip, when can I get a loan to start my next project?
Once you have made one payment, done one draw, and we can see your work quality, Planet Renovation Capital will look at your next project.
What’s the difference between a fix-and-flip loan, a hard money loan, and a private money loan?
They all mean the same thing. They’re different names people use for loans used to finance the purchase and renovation of real estate.