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Interview With Construction And Renovati…on loan specialist

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Interview with Construction and Renovation Loan Specialist Beau Eckstein

In the interview, real estate investor and private money lender Beau Eckstein, of HGTV’s Flip It to Win It, talked about the last real estate house flip he and his company funded.

Two borrowers came to Beau with a property in contract that they got from a wholesaler. The borrowers, two house flippers, needed to maximize their resources (i.e., use as little of their own money as possible) while flipping the house.

The home was $680,000 and the renovation costs were $100,000. Beau and his company were able to lend them all the money they needed in order both to acquire and renovate the property, and they only had to come up with 15 percent of the acquisition costs and 15 percent of the renovation costs.

Now, how can a private money lender do deals like this? Because the future selling price is really high. In this deal, the home will most likely sell for a profit equal to 2x the renovation costs. That’s a great ROI on a very small amount of out-of-pocket investment.

Private money funds do business with real estate investors and house flippers based on 3 primary criteria:

1. Past project performance
2. Existing relationship
3. Potential of the property in question

Beau calls these real estate deals, “make sense loans” and that term actually makes sense because every party in the transaction stands to earn a profit for the work they do.

And the downside is limited because we’re currently in a sellers’ market again and interest rates are low.

For more great house flipping tips, visit
http://beaueckstein.com/

or just give Beau a call at 925-852-8261

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