Calvert Home Mortgage provides real estate financing for properties in Alberta
Ontario Short-Term Financing
Are you or your client the type of investor who has a keen eye for a good deal on a property that could use some TLC? If you’re looking to put some elbow grease (or somebody else's) into a property renovation, flip it for a profit, or add it to your rental portfolio, this one's for you.
Our Flip Financing Underwriting Philosophy: If it is a profitable deal we want to be involved
We offer open short term mortgages at 80% LTV on the after repaired value of the property. This means we will consider and lend on what the property will be worth after all renovations are completed, not only what it is worth before the fix. The minimum a borrower needs to invest in a down payment is $20,000! This leaves the necessary cash in the borrower's pocket to complete the renovations and potentially invest in other flip projects. We have over 40 years of experience helping clients invest in real estate, and we'd like to help.
1) Profitability is our first underwriting filter: will our borrower make money?
2) We do that by valuing the property as if completed with the renovations planned, which is why we require the budget and description of renovations.
3) We ask for a minimum of $20,000 down. On a rare occasion where we think the profit margin is slim, we may ask for more money down, but we are more likely to discuss with the client why they think the profit is higher than we do, and ensure it is the right investment decision. (Max LTV is 80% of the after repaired value, and minimum down payment is $20,000.)
4) Clients cover the cost of renovations on their own.
5) Client must make monthly interest-only payments.
On all flip deals we require the following details related to the property:
Renovation budget and details
For the first deal, application and credit is required. We'll do that exercise annually after that.
Flip Analyzer Spreadsheet
Email email@example.com to receive a free copy of our Flip Analyzer Spreadsheet
Clients may use this spreadsheet for their own calculations but are not required to submit to us. Important note: a total commitment fee of 2% is built into the spreadsheet.
The sheet is designed to calculate all the costs in a flip to decide:
1) If it is profitable enough at a certain purchase price, or,
2) If based on a certain profit objective, what the maximum purchase price can be for the property. All variables that a borrower needs to input are highlighted in the spreadsheet.