In Episode 20 of Intelligent Equity, host Ryan Kiefer talks with Dustin Swigart of Prime Lending. Dustin explains why renovation loans are popular right now and why buying a fixer-upper is a big opportunity, particularly for millennials. You’ll also hear about some fun projects Dustin has helped finance and hear how easy it can be to finance this type of loan.

Episode Highlights:

Renovation loans are very popular right now.
There's a lot of aged inventory. In the U.S., more than 70% of single-family homes were built prior to 1950.
This is a great opportunity to buy a fixer-upper, build some equity, and customize it.
A lot of houses need TLC. It can feel like you’re entering a time warp with shag carpet and olive green appliances.
Someone bought a home for $17k, financed $320k in renovations, and the property was worth well over $400k when it was done.
Millennials are starting to buy fixer-uppers.
HGTV did some research on millennials showing they are more likely to buy a fixer-upper because of student loan debt.
There's an inventory issue on starter homes. There's probably two months or less of inventory.
If it's a perfect house it's going to get multiple offers and go over list price.
Dustin had a client who was buying a fireman's lodge. He converted it to a single-family residence. He put $130k into it and it was 4500 square feet.
There are low down-payment options.
The down payment is based on the purchase price plus renovation.
They typically have six months to complete renovation after closing.
Unlike a construction loan where you close upfront, it's a regular loan that they'll start making payments on.
They make inspections and make sure everything is being done per the scope of work.
If they can't occupy right away, they can finance mortgage payments into the escrow.
Dustin did a project in Newport in the central business district fringe. There was a single-family corner property that had been converted to a restaurant that someone wanted to convert back to a single-family home.
This property was 5500 square feet and they closed with close to 100k equity. They put in $180k in renovations.
There are opportunities out there for unique projects.

3 Key Points:

Renovation loans are still a hot topic both locally and nationally.
Millennials are more likely to buy fixer-uppers because of student loan debt.
Unlike a construction loan where you close upfront, a renovation loan is a regular loan that they'll start making payments on.

Resources Mentioned:

Ryan Kiefer: LinkedIn, Facebook, Website
Dustin Swigart LinkedIn

Episode 20: All About Renovation Loans with Dustin Swigart