You are busy, so just read the first few sentences below…

Not every customer has the cash or the existing equity to pay for the project of their dreams.

Have all your potential leads call me to discuss the different ways to pay for their projects. That’s it! I will handle the money part, including possibly telling them to pay you in cash.

Once they are comfortable with the financing, they can work with you, knowing their financial parameters. This will give your customers a sense of relief, and make planning the job that much easier, because everyone knows those parameters.

What is a renovation mortgage?

Renovation loans have many great features, but there is one that truly stands out…RENOVATION LOANS ARE BASED ON THE FUTURE VALUE OF THE HOME, not the current value.

So when you are submitting a estimate/bid/proposal to a homeowner for a renovation and/or addition, and the cost of that project exceeds the amount of equity and/or cash they have, a renovation loan could save the deal.

Shoot me an email requesting the financing brochure customized for contractors, and I will send you a stack.

You have a toolbox…here’s your money box!

You can get more business, and be the hero by simply handing a potential client information with all their financing options. If you would like such a flyer, please contact me.

Here are the many ways your customers can pay for home improvement, renovation and additions –

• Renovation Mortgage or Renovation to Perm – This type of financing has one significant advantage…it is based on the future value of the home and is likely tax deductible depending on IRS rules at the time.
  Cash (including retirement funds) – This is great, but if it is coming from a high yield fund or retirement account, then your customer might want to consult with their financial adviser before liquidating such an asset.
• HELOC/2nd Mortgage – This vehicle can work nicely, if there is enough current equity to cover the project costs. Under new tax laws, this type of financing may no longer be tax deductible. Also HELOC’s typically have variables rates.
• Refinancing – Much like a HELOC, in that this is based on current value, NOT future value. If there is enough equity, then this is excellent, and is still likely tax deductible.
  Custom Renovation Financing (from companies that specialize stand alone loans for this purpose) – Can work if a relatively small project. Rates are higher. Not tax deductible. Look at final payment compared to above options.
• Personal Loan – This works, but is limited as most banks cap these loans at around $10,000. Rates are higher, and not tax deductible. Best for small projects, especially if customer can pay down rapidly.
• Cards – Much like personal loans, these are not tax deductible, typically have much higher interest rates. Loan amounts are limited. Not a good option unless customer has ability to rapidly pay down the balance.