5 Mistakes New Investors Make When Financing Their First Deal

[Michael Santeusanio]

I see many first-time investors run into the same financing pitfalls:

1. Not getting pre-qualified before making offers

2. Underestimating rehab costs

3. Overestimating ARV

4. Choosing the wrong loan term for their exit strategy

5. Forgetting about holding costs
   What’s one financing mistake you wish you could go back and avoid?

[Jacob Thorpe]

Quote from @Michael Santeusanio:

I see many first-time investors run into the same financing pitfalls:

1. Not getting pre-qualified before making offers

2. Underestimating rehab costs

3. Overestimating ARV

4. Choosing the wrong loan term for their exit strategy

5. Forgetting about holding costs
   What’s one financing mistake you wish you could go back and avoid?

 A good addition to this list would be to work with a reputable lender who knows how to get deals done and is reliable.  When I first had began flipping, I thought every lender was the same... its all just a loan, I won't have it for very long, what's the difference who I go with? If I could turn back the clock I would have tried to find the best broker I could have.  Worst thing you can do is get tied down to an awful lender who will hamstring you!