New Investor seeking financing guidance

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  • Irv ArreolaPro Member
    Lender · Los Angeles CA · Member since 2026 · 41 posts · 7 votes
    2d

    Acquisition plus rehab money is sized off the after repair value and the scope of work, and the exit should be lined up before you close, either selling or refinancing into a long term rental loan that prices off rent versus payment. In DFW that structure is pretty standard on 1 to 4 unit stuff. Do you have a property in mind yet, and if so what are you figuring for purchase plus rehab against the ARV?

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  • Marc Del Priore
    Lender · Philadelphia, PA · Member since 2024 · 10 posts · 3 votes
    2d

    Hi Stephanie — welcome in, and good instinct asking before you are under contract. For acquisition-plus-rehab deals, investor-focused lenders mainly look at purchase price, rehab budget, and ARV — most hard money will size to a percentage of purchase plus rehab, capped by ARV, and your exit (sale vs. refi) and any prior rehab experience factor into terms. Having a rough deal sheet ready, even on a sample property, makes lender conversations much more concrete. I am Marc with Royal Partners — if you want, DM me a property you are looking at with price, rehab estimate, and expected ARV and I will give you straight numbers on how it would likely be structured.

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  • Joe Piccirello
    Lender · Peoria, AZ · Member since 2026 · 28 posts · 9 votes
    2d

    Welcome to BiggerPockets, Stephanie! Great to see another Dallas real estate professional getting into investing!

    I’d love to help you navigate the financing side. I work with several investor-focused lending partners, including CV3 Financial Services, Deephaven, Angel Oak, and Change Wholesale, giving us some great options to explore depending on your investment strategy.

    For acquisition and rehab, we can look at fix-and-flip financing or bridge loans to help with the purchase and renovation. If your goal is to hold the property as a rental, we can also explore DSCR financing for the long-term exit strategy.

    The best solution really depends on the purchase price, rehab budget, after-repair value, and whether you’re planning to flip or hold.

    I’d love to connect, help you explore your options, and be a financing resource for you and your investor clients as you grow your business here in Texas!

    Feel free to message me. Happy to help!

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  • Matthew MorrowBusiness Member
    Investor · PA - NY - NJ · Member since 2019 · 655 posts · 226 votes
    1d

    @Stephanie Johnson talk to two or three lenders, not just one. Ask each how they handle the rehab money, whether it comes in draws, and how fast those draws get paid, because slow draws can hold up a job more than the rate does. Have your scope and contractor bids ready before you call, since that's what they'll size the loan off. And plan to keep reserves after closing. Good luck with the deal.

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  • Ametria Chaney
    Realtor · Memphis, Shelby County · Member since 2026 · 58 posts · 13 votes
    1d

    Welcome in, Stephanie — smart move asking before you're under contract. From the transaction side, the thing that makes lender conversations productive is walking in with a sample deal already sketched out: purchase price, rehab budget, and ARV on a real property, plus your exit (flip or hold). Lenders size acquisition-plus-rehab loans off those three numbers and your exit plan, so even a practice deal sheet turns vague advice into real terms. Also ask every lender how rehab funds are released — draws, inspection requirements, and how fast they fund — because slow draws stall a job site faster than a higher rate does. Compare two or three term sheets side by side and keep reserves after closing. What strategy are you leaning toward first — flipping or holding rentals?

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  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    1d

    Welcome to BP from down in Austin!

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  • Adam Summerer
    Lender · Franklin, TN · Member since 2026 · 104 posts · 23 votes
    1d

    Don't assume you need a track record to get funded, there are lenders that'll do a first flip at up to around 90% of cost and 100% of rehab, capped near 75% of ARV. The catches are usually an LLC requirement, full recourse, points up front, and rehab money paid out in draws after the work is done, so keep enough cash to float the first phase or two. Have a contractor bid and scope of work ready before you apply, it's the first thing they'll ask for.

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  • Aaron Zucker
    Realtor · New York, NY · Member since 2019 · 48 posts · 13 votes
    1d

    Adding an angle from the buying side, since you're an agent as well as a new investor:

    1. Decide the exit lender before the acquisition lender. If the plan is buy-rehab-hold, run the refinance first — at today's rates, will the finished rent actually support a DSCR or conventional refi at the ARV you're projecting? A lot of first deals don't die at purchase, they die at the refi because the rent math never worked. If that math is tight, the deal is really a flip, and you should finance and price it like one.

    2. Your financing is part of your offer. In DFW, a wholesaler or listing agent picking between offers cares about certainty: a real pre-approval from an investor lender plus proof of funds for your down payment, closing costs, and reserves will beat a slightly higher price with vague financing every time. Get that package together before you start writing offers.

    3. Budget the carrying costs honestly. Interest-only payments, taxes, insurance, and utilities for 4-6 months, plus a rehab contingency of at least 10-15%. And ask each lender two things people forget: do you lend to first-time rehab borrowers (some cut leverage hard with no track record), and how many days does a draw actually take to hit your account?

    4. For deal #1, lean toward a lighter rehab — cosmetic and systems, not structural. It ties up less capital, the draws move faster, and you build the track record that gets you better terms on deal #2.

    You're already doing the right thing getting this lined up before you're under contract. That's where most new investors lose their first deal.

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  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 226 posts · 87 votes
    1d

    Welcome, Stephanie! For acquisition and rehab projects, I'd compare fix-and-flip loans, renovation financing, and other investor loan options depending on whether you plan to sell or hold the property.

    The right financing structure can make a big difference in your upfront cash requirements and overall project costs. Are you planning to flip your first property or renovate it into a long-term rental?

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1d

    Hey Stephanie,

    What specific questions did you have in mind?

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  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 481 posts · 202 votes
    1d

    @Stephanie Johnson For acquisition and rehab, I’d compare local portfolio lenders and community banks with hard-money or bridge lenders. Banks may offer lower rates but stricter underwriting, while private lenders can close faster and fund renovations at a higher cost. Ask each lender about required equity, draw schedules, appraisal method, interest-only payments, fees, experience requirements, and refinance options. Before choosing, underwrite the project conservatively—including contingency, carrying costs, and a slower-than-expected exit—and verify the lender’s references and full terms.

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  • J CastroBusiness Member
    Lender · Florida · Member since 2025 · 712 posts · 254 votes
    23h
    Quote from @Stephanie Johnson:

    New investor looking for guidance on financing acquisition and rehab of properties. I welcome and referrals to investor focused lenders.

    Hi @Divin Kanyama, welcome to BP! We work with real estate investors to finance acquisitions and renovations through investor-focused Fix & Flip loan programs.

    We offer financing solutions designed to help investors purchase properties, fund renovations, and grow their portfolios. Feel free to reach out, and we’d be happy to discuss your project and explore potential financing options.

    Looking forward to connecting!

    JCREIG Capital Funding
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  • Matthew CrivelliBusiness Member
    Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
    10h

    Hi Stephanie, welcome to BP! For your first acquisition + rehab, a fix and flip (bridge) loan is usually the cleanest route. Typical structure for a first-time investor: the lender funds a percentage of the purchase price and 100% of the rehab budget, paid out in draws as work is completed, on a 12-month interest-only term with no prepayment penalty. How much of the purchase gets covered depends mostly on your credit score and track record. With strong credit, even a first deal can get up to 90% of purchase.

    A few things to have ready: an LLC to borrow in (these are business-purpose loans), a detailed scope of work and budget, your expected ARV with comps, and proof of funds for your down payment, closing costs, and a few months of reserves. Being a licensed agent can also help you qualify, since some lenders give agents credit for experience.

    Happy to run numbers on a specific deal once you have one under contract. I'm with Freedom Capital Funding, and we do a lot of first-time flip loans in Texas.

    [email protected]413-348-8346
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  • Logan LambertPro Member
    Member since 2026 · 8 posts · 4 votes
    10h

    One of the biggest things I would recommend is getting connected with an investor-focused lender before you start looking at properties. Understanding your financing options upfront can save you a lot of headaches.

    It’s also extremely important to understand your exit strategy before purchasing. Whether you’re planning to flip the property or refinance into a long-term rental, you want to make sure the numbers work on both ends.

    I’d also recommend comparing lenders on more than just interest rates. Leverage, closing costs, rehab draw processes, and overall experience can make a huge difference, especially on your first deal.

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