Investors: What’s your biggest hurdle when securing capital for flips?

[Brandon Lee]

For active fix-and-flippers, what is the toughest part of getting funding lately?
• Speed of approval?
• Loan terms?
• Not enough leverage?
• Experience requirements?

I'm looking to learn from real experiences so I can understand what investors value most in a lending partner.

[James Jones]

For me the biggest hurdle isn’t speed or terms anymore, it’s consistency.

A lot of lenders advertise high leverage and fast approvals, but when you’re actually in the trenches doing multiple deals a year, the friction usually shows up in three areas:

1. Leverage that changes at the last minute.

Many lenders will quote 85 to 90 percent LTC, then tighten up once underwriting digs in. That makes it difficult to plan capital deployment, especially when running multiple projects at once.

2. Draw processes that slow the entire project down.

A flip lives or dies by timeline. If draws take a week to inspect and release, holding costs eat up the spread. A lender with efficient, predictable draws is far more valuable than the lowest rate.

3. Underwriting that isn’t aligned with real-world deals.

Some lenders view every project through an institutional lens, which doesn't work well for value-add neighborhoods or heavy rehabs. If the lender doesn't understand the submarket, you end up fighting over comps or ARV assumptions.

Terms matter, but for active operators the real value is a lending partner who is reliable, understands the asset class, and doesn’t move the goalposts mid-deal.