Grow your real estate investing business with the most competitive and transparent private lender for bridge loans (hard money, fix & flip, rehab, ground up construction), DSCR rental loans.

Private Lender for DSCR Loans and Fix & Flip Loans | OfferMarket

Private Lender for DSCR Loans and Fix & Flip Loans

## What is Dutch Interest?

 

Dutch Interest, also known as [Full Boat interest](https://www.offermarket.us/real-estate-glossary/full-boat), is when a private lender charges interest on the full loan amount, including the construction holdback that has not yet been disbursed to the borrower.

 

For example, let's say you have a $100,000 construction loan from a private lender at 10% interest. The lender uses a [draw request process](https://www.offermarket.us/frequently-asked-questions/what-is-the-draw-request-process-for-offermarket-capital-construction-loans) to reimburse you based on progress completing your [scope of work](https://www.offermarket.us/real-estate-glossary/scope-of-work). You may not have received any of your construction loan holdback but you are still paying interest monthly on the full $100,000 portion of your loan. That's $833.33 per month for funds you have not even accessed yet.

 

## Do all private lenders charge Dutch Interest?

 

When evaluating private lenders, it's important to confirm whether they charge dutch interest or ["non-dutch" or "as disbursed" interest](https://www.offermarket.us/real-estate-glossary/as-disbursed). You can save a lot of money by avoiding dutch interest.

 

Unlike most private lenders, OfferMarket charges interest on an as disbursed basis -- you are only charged for the portion of your construction loan that is actually funded to you. We believe this is the most fair arrangement and aligned with [our mission](https://www.offermarket.us/about).

 

## Fix and Flip Bridge Loan Quotes

 

[Get a quote](https://www.offermarket.us/loans) in under 1 minute from OfferMarket.

Dutch Interest is when a private lender charges interest on the full loan amount, including the construction holdback that has not yet been disbursed to the borrower.

large_Dutch Interest Private Lender Real Estate.png

medium_Dutch Interest Private Lender Real Estate.png

small_Dutch Interest Private Lender Real Estate.png

thumbnail_Dutch Interest Private Lender Real Estate.png

Dutch Interest Private Lender Real Estate.png

Dutch Interest - Private Lender - Construction Loan | OfferMarket Glossary

Dutch Interest

#### What is a cash buyer? 💰

 

A cash buyer is a real estate investor -- either an individual or business entity -- that buys houses in cash. Cash buyers can be particularly attractive to a seller because they are typically able to close the transaction faster and have a lower risk of having the deal fall through because there is no lender involved.

 

#### What should I know about cash buyers?

 

In reality, however, many people tell sellers they are cash buyers but in actuality they are representing other cash buyers. These people are called real estate wholesalers. Real estate wholesalers place sellers under contract by providing cash offers, and then assign their role as Buyer in the contract to another Buyer who purchases the property at the seller's agreed upon terms. Wholesalers are compensated by the buyer they bring into the transaction, typically in the form of an "Assignment Fee". For more on this, read our guide [Wholesale Real Estate 101](https://www.offermarket.us/guides/wholesale-real-estate-101).

 

#### How do I find serious cash buyers?

 

If you are looking to sell your house fast, the easiest way to find actual cash buyers is to [create your free listing](https://www.offermarket.us/sell) on OfferMarket. Every month, thousands of qualified cash buyers browse our marketplace looking for off-market real estate.

A cash buyer is a person or business entity that is able to purchase real estate without using a lender. Learn more about cash buyers.

large_Real Estate Glossary - Cash Buyer - MetaImage.jpg

medium_Real Estate Glossary - Cash Buyer - MetaImage.jpg

small_Real Estate Glossary - Cash Buyer - MetaImage.jpg

thumbnail_Real Estate Glossary - Cash Buyer - MetaImage.jpg

Real Estate Glossary - Cash Buyer - MetaImage.jpg

Cash Buyer - Real Estate Glossary - OfferMarket

What is Cash Buyer in real estate?

#### What does rehab mean?

 

In the real estate lingo, to "rehab" means to rehabilitate or renovate a house. [Fix and flip](https://www.offermarket.us/real-estate-glossary/fix-and-flip) and rental property investors commonly purchase properties that require anywhere from minor to major rehab work in order to cost effectively build equity value in a property.

 

#### What is an example of a rehab project?

 

Let's say you buy a home for $100,000 that, based on [comps](https://www.offermarket.us/real-estate-glossary/comps), will be worth $300,000 if you invest in repairs and cosmetic improvements. The question now is how much will it cost to rehab this property? See the sections below to learn how to estimate your rehab budget.

 

If your rehab budget is $100,000, then your total investment (not including financing and closing costs) is $200,000. If your goal is to [BRRR](https://www.offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) the property (buy, rehab, rent, refinance), then you are looking at pulling out $225,000 if you refinance at 75% LTV. 

 

In this example you will end up with 25% equity in a cash flowing rental property and as much as $25,000 more than you started with to use on your next deal. This is why many rental property investors focus on [cash on cash return](https://www.offermarket.us/real-estate-glossary/cash-on-cash-return) as their primary deal evaluation metric.

 

#### How to estimate rehab budgets?

 

To accurately estimate a rehab budget, you must carefully assess all of the work required to bring a property to its target after repair value ([ARV](https://www.offermarket.us/real-estate-glossary/arv-after-repair-value)). 

 

#### How to keep your rehab budget low?

 

To keep your rehab budget low, you want to eliminate unnecessary costs. For example, if you have enough time to manage the project yourself, then you do not need a general [contractor](https://offermarket.us/real-estate-glossary/general-contractor). General contractors typically take 10 - 15% of the total project value. So if you are quoted at $100,000 for a rehab project, you can assume your general contractor is making $10,000 - $15,000.

 

Another way to drive down your rehab costs is to make your suppliers (sub contractors, materials) submit competitive bids. This will keep them honest and bring out the best value they are willing to offer. We recommend asking for bids to show, line item by line item, exactly how the component costs add up to the total quote. For a kitchen rehab, this means you will want to know exactly how much the [contractor](https://offermarket.us/real-estate-glossary/general-contractor) or supplier is budgeting for counter tops material (price per square foot) and labor (installation).

 

A final way to keep your rehab budget under control is to understand the cost basis for the work you are sub contracting. If you understand material costs and cost of labor for each component of your project, then you will know what to budget for each component and you will know when a [contractor](https://offermarket.us/real-estate-glossary/general-contractor) might be overcharging or taking advantage of you. There is often an "investor" price and a "retail" price, and the difference can be considerable.

In the real estate world, to rehab means to rehabilitate or renovate a house. Learn more about rehabbing on OfferMarket.

Rehab meaning real estate glossary definition

large_Real Estate Glossary - Rehab - MetaImage.jpg

medium_Real Estate Glossary - Rehab - MetaImage.jpg

small_Real Estate Glossary - Rehab - MetaImage.jpg

thumbnail_Real Estate Glossary - Rehab - MetaImage.jpg

Real Estate Glossary - Rehab - MetaImage.jpg

Rehab - Real Estate Glossary - OfferMarket

What is Rehab in real estate?

#### What are comps?

 

Comps are a real estate valuation method using comparable properties as the basis for estimating the value of a subject property. Running comps is a skill that anyone can learn and a skill that improves with practice and repetition. Producing accurate and conservative comps is extremely important to avoid real estate investments that do not provide a satisfactory return on investment.

 

#### How to run comps?

 

To run comps, you should find 3 to 5 properties within a 1 mile or less radius that have sold within the last 6 months and match the profile of the subject property you are valuing (i.e. year built, number of bedrooms, number of bathrooms, sq. ft., lot size, stories). If these constraints are not practical, then you can expand your radius and timeline.

 

Next you add or subtract value from your subject property based on objective differences between the subject and the comparable property. For example, remove $10,000 if the comparable property has a new roof and the subject property needs a roof replacement.

 

#### How accurate are Zillow and Redfin estimates?

 

In some cases Zillow's Zestimate and Redfin's estimated house values are accurate but they do not have enough knowledge of the property condition to provide an accurate or relevant estimate in many cases. These estimates are especially inaccurate for houses that were built more than 30 years ago. You will notice these estimates are more reliable for communities built recently by a common builder with similar floor plans and lot size.

Comps are a real estate valuation method using comparable properties as the basis for estimating the value of a subject property.