Читать книгу Flipping Houses For Dummies онлайн

83 страница из 103

To gauge their confidence in approving a loan, lenders look at your five Cs: collateral, character, credit, confidence, and cash flow:

 Collateral is the property you intend to purchase. When you’re flipping houses and attempting to obtain loan approval before looking at houses, you’re not in a position to describe the collateral, but you can put together a plan that shows the price ranges of the houses you intend to purchase, appreciation percentages for the area, and how you plan to renovate and sell the properties for a profit.

 Character is the way you present yourself to the lender. You need to convince the lender that you have the knowledge and resources available to profit from your investments. A strong plan and presentation can convince the lender that you have the right stuff.

 Credit is your credit report, credit score, and credit worthiness (how much you can afford). A clean credit report shows that you pay your bills and aren’t over your head in debt. See “ssss1,” later in this chapter.