I need help!
Member since 2026 · 9 posts · 1 vote
I need help!
25 Replies
- 1dDevin PetersonBusiness MemberLender · Sarasota, FL · Member since 2022 · 2k+ posts · 689 votes
Gina, welcome! Since you mentioned financing for the purchase and rehab, here's roughly how most fix-and-flip lenders look at a deal, which is also a good framework for evaluating one yourself:
ARV (after-repair value). Pull sold comps (not listings) of similar renovated homes nearby from the last few months. Almost everything keys off this number.
All-in cost vs. ARV. Lenders typically cap the loan at a percentage of purchase plus rehab and also at a percentage of ARV, so the deal needs real margin. Many investors aim for all-in cost (purchase, rehab, holding and selling costs) around 70-75% of ARV or less.
A detailed scope of work and budget. Rehab money is usually paid out in draws after inspections, so you front each phase and get reimbursed. Keep reserves for that plus a 10-15% contingency.
Cash to close. Even with high leverage, expect a down payment, closing costs, points, and several months of holding costs.
Experience. First-time flippers often get lower leverage or higher pricing. Partnering with an experienced investor or a solid GC on the first deal can help with terms.
Exit. Know before you buy whether you'll sell or keep it and refinance (for example into a DSCR rental loan).
When you talk to lenders, ask each one about max leverage on purchase, rehab and ARV, rate and points, the draw process and fees, term and extension options, and any prepayment penalty, so you can compare apples to apples. Good luck on the first one!
ProAlpha Capital55 Reviews- Member since 2026 · 9 posts · 1 vote9h
Thank you so much for taking the time to explain this. I really appreciate the detailed advice. As a first-time investor, I’m trying to educate myself and understand the numbers, financing options, and the entire process before jumping into my first deal. My goal is to find a profitable fix-and-flip opportunity in Georgia and work with the right lender and experienced professionals. This information is very helpful, and I’ll definitely keep these points in mind when evaluating properties and speaking with lenders. Thank you again for sharing your knowledge!
- 1dRyan BakerBusiness MemberLender · Strongsville / Cleveland, OH · Member since 2026 · 158 posts · 39 votes
Hi Gina, welcome! Fix and flips are a great place to start, and lining up your financing before you make offers makes you a much stronger buyer. Most flip lenders will cover a big chunk of the purchase plus the rehab, paid out in draws as the work gets done, and they'll want to see your numbers: purchase price, rehab budget and after-repair value.
I do lending for investors and have a construction and property management team, so I'm happy to walk you through how a first flip loan works, what you'd need to qualify, and how to run a deal before you put in an offer. Give me a call, my number's in my signature below.
– Ryan
- Member since 2026 · 9 posts · 1 vote9h
Hi Ryan, thank you for the warm welcome and for offering to help. I really appreciate it! I’m a new investor, and I don’t have a property under contract yet. I’m actively looking for my first fix-and-flip opportunity in Georgia. I’d love to learn more about your lending process, qualification requirements, and how you can help finance both the purchase and renovation. I’d be happy to schedule a call to discuss the next steps. Thank you again!
- 1dIrv ArreolaPro MemberLender · Los Angeles CA · Member since 2026 · 65 posts · 11 votes
Welcome Gina. Since you want one lender covering both the purchase and the renovation, the first thing any of us will size the loan off is the after repair value backed by sold comps, plus a written scope of work.
Do you have a specific property in Georgia you're looking at yet, or are you still building your criteria?
- Member since 2026 · 9 posts · 1 vote9h
Thank you! I don’t have a property under consideration just yet, but I’m actively looking for my first investment property in Georgia. I’m focusing on finding a good fix-and-flip opportunity and would like to have the right financing in place before making an offer. Ideally, I’m looking for a lender who can finance both the purchase and renovation. I would appreciate any guidance or recommendations as I work toward finding the right deal.
- Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 203 posts · 68 votes22h
Quote from @Gina Petit-Homme:
Hello, I am a new real estate investor based in Georgia, looking to get started in the fix-and-flip business. I am seeking guidance and mentorship from experienced real estate professionals who can help me identify good investment opportunities, evaluate potential deals, and connect with reliable lenders who offer financing for both property acquisition and renovations.
I am serious about getting started, building the right relationships, and learning how to make smart, profitable investments. I would greatly appreciate any guidance, resources, or connections that could help me take the next steps in my real estate investing journey. Thank you!
Well you start with deciding what your reason is for investing, then decide what kind of investing you want to do and then decide where you'll be investing. We have material that helps folks walk through that process or if you have a buddy to deal with some of that, it works too.
- Member since 2026 · 9 posts · 1 vote9h
Thank you for the advice! I’ve been thinking about my goals, and my immediate focus is getting started with fix-and-flip investments here in Georgia. I’m a new investor, so I’m looking to learn the process, understand how to identify profitable deals, and connect with experienced investors who can guide me in the right direction. I’d definitely be interested in learning more about the materials you offer to help beginners get started. I appreciate your help!
- Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 203 posts · 68 votes3h
Quote from @Gina Petit-Homme:
Thank you for the advice! I’ve been thinking about my goals, and my immediate focus is getting started with fix-and-flip investments here in Georgia. I’m a new investor, so I’m looking to learn the process, understand how to identify profitable deals, and connect with experienced investors who can guide me in the right direction. I’d definitely be interested in learning more about the materials you offer to help beginners get started. I appreciate your help!
I'll tag you and once you respond I can send you more.
- 21hDivin KanyamaBusiness MemberAccountant · Seattle, WA · Member since 2025 · 700 posts · 295 votes
Welcome, @Gina Petit-Homme ! Here are a few thoughts.
Learn to run the numbers first. Estimate the after-repair value from recent comps, build a rehab budget with a cushion, and work backward to your max offer after repair, holding and selling costs and your profit.
Keep your first deal simple: a cosmetic rehab in an area you know well. Walk lots of houses to learn what repairs cost, and vet contractors carefully (references, license, insurance, and pay in draws).
For financing, look at local hard money and private lenders that fund both purchase and rehab. Compare rates, points, fees and loan-to-ARV limits. Investor meetups are the best place to find them, so ask other flippers who they trust.
For mentorship, go to your local REIA meetings and offer to help, like walking properties or running comps, in exchange for learning. Also talk to a CPA early, since flip profits are taxed differently than rentals. Good luck!
- Member since 2026 · 9 posts · 1 vote9h
Thank you so much for sharing these valuable tips! I really appreciate the guidance. As a new investor, my goal is to learn how to analyze deals properly, understand the numbers, and build relationships with experienced investors and reliable lenders here in Georgia. I'm willing to put in the work, learn from others, and take the right steps to make my first flip successful. I especially appreciate the advice about REIA meetings and finding mentors through networking. Thank you again for your encouragement!
- Lender · Indianapolis · Member since 2025 · 26 posts · 7 votes16h
The best way to get guidance without paying an expensive "guru" is to just show up at local Georgia REIA meetups and talk to people actively doing deals. Most experienced flippers won't mentor anyone for free, but if you can bird-dog and bring them a solid off-market lead, they'll gladly walk you through the numbers. Just make sure you have cash saved up before you jump in, because even with hard money covering rehab, you still need to bring roughly 10% down, closing costs, and holding reserves to the table.
In any case, in the lending landscape, feel free to reach out.
Sagi
- Member since 2026 · 9 posts · 1 vote9h
Thank you, Sagi! I really appreciate the advice and insight. I’m definitely looking to connect with experienced investors, learn the business the right way, and build relationships with people who are actively doing deals in Georgia. I understand the importance of having cash reserves and being financially prepared before taking on my first flip. I’m taking things one step at a time and look forward to learning more. I also appreciate your willingness to help on the lending side. Thank you again!
- Member since 2026 · 43 posts · 6 votes11h
Gina, welcome, and good on you for lining up the financing side before the first deal. Flip lenders mostly look at the deal, so build your lender package early: the purchase contract, a line-by-line rehab budget with a contractor bid, and sold comps for the after-repair value. Before you fall in love with a property, add purchase, rehab, carrying and selling costs and make sure the ARV leaves real margin. For a first flip, expect most lenders to want some of your own cash in and to pay the rehab out in draws. I'm a mortgage broker who works with investors, so when you have one under contract, send me the purchase price, rehab budget and resale value and I'll tell you honestly whether it's financeable. – Stephen
- Member since 2026 · 9 posts · 1 vote9h
Thank you, Stephen, I really appreciate your advice and willingness to help. As a new investor, I’m learning the process and trying to make sure I have the right financing and a solid deal before moving forward. Your guidance is very helpful, and I’ll definitely reach out once I have a property under contract. Thank you again!
- Developer · Boston, MA · Member since 2017 · 258 posts · 136 votes9h
Hey Gina, welcome! You've already got good lender advice above, so I'll add the part that trips up a lot of new flippers, which is the rehab number. Most first flips that go sideways don't fail on the buy, they fail because the repair estimate was light. Before you make offers, walk a handful of houses with a contractor or two and have them price the work out loud. Kitchens, baths, roof, windows, electrical and plumbing are where the money goes, and you'll get a feel for your local costs pretty fast. Then add a 10 to 15 percent cushion on top, because something behind the walls always shows up.
For deals, pull sold comps of fully renovated houses in the same neighborhood and work backward from that price, not from the asking price. Count your holding costs too, like interest, insurance, utilities and taxes for every month you own it.
On money, I usually point people to a hard money lender for the first one, or check your local credit unions, since some of them do rehab loans and are easier to work with than you'd expect. Get two or three quotes on the same deal so you can compare them side by side.
Redgy
- Member since 2026 · 9 posts · 1 vote9h
Thank you so much for sharing this advice! I really appreciate you pointing out the importance of getting accurate rehab estimates. As a first-time investor, I want to make sure I’m doing my homework, understanding the numbers, and avoiding costly mistakes. I’m actively looking for my first fix-and-flip property in Georgia, and I’m also working on building relationships with reliable contractors and lenders. I will definitely keep your recommendations in mind and take the time to get multiple quotes before moving forward. Thank you again for your guidance!
@Gina Petit-Homme, flipping now is getting tougher, but it depends on the areas. I'd learn to estimate a rehab on paper before talking to lenders, since first flips usually go wrong on the repair budget more than the purchase price. Walking a few houses with a contractor teaches that faster than reading about it. Are you keeping a full-time job through the first one? Which other strategies are you weighing next to flipping? I'd be open to a conversation about it and talk strategy if that would be useful.
- Member since 2021 · 18 posts · 0 votes8h
Gina, finding the deal, running the numbers, and lining up money all at once is a lot when you're just starting out. One tip: get your rehab and purchase numbers dialed in before you talk to lenders. Hard money lenders move much faster when you show up with a property, a scope of work, and a realistic after-repair value from sold comps. Distressed sources like pre-foreclosures and REOs tend to give flippers the most room in the numbers. I mentor investors remotely across the USA on finding and funding these kinds of deals, so if mentoring ever makes sense for you, feel free to reach out. Either way, good luck on your first flip! - Ray
- 8hErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Gina, welcome! One step worth taking before you find the deal: get pre-qualified with a lender or two now. Knowing your max leverage on purchase, rehab and ARV tells you exactly what you can offer, and a pre-approval letter makes sellers take you more seriously.
To size it, lenders will mostly ask for your credit range, how much cash you can bring (down payment, closing costs and reserves), and any rehab or construction experience. Having those answers ready will speed up every conversation.
Erik
LuxePrivate Investments LLC 572 Reviews - Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 203 posts · 68 votes7h
What is your plan for financing your fix and flips? That seems to be what holds most people back.
I'm aware of three options - we use the third option
There are variations of all of these but in 30 years of flipping what I generally see are:
.
1. Using a bank -
a. Bank qualifying financing
b. 20% down.
c. 7% interest
d. use MLS
e. Normal bank loan
f. Normal real estate agent fees
g. Normal purchase routine
h. So a $300,000 house
i. Is $60,000 down
j. $2,000 a month payments
k. Then taxes, utilities
l. You bring in the rehab money
m. Tend to be slow to decide
n. Must qualify
.
2. Hard Money -
a. Generally will provide 70% financing on the lesser of value of finished product (ARV) or of purchase price whichever is less
b. 30% down.
c. 9% - 12% interest
d. Can buy ?off market?
e. Credit not as important
f. No real estate agent fees
g. So a $300,000 house
h. Is $90,000 down
i. $1,700 to $2,200 a month payments
j. Then taxes, utilities
k. You bring in the rehab money
l. Tend to be faster to decide
m. Must have experience
.
3. Taking Over someone's loan -
a. Generally will provides full financing on the loan
b. 8.5% down.
c. $25,000 down.
d. 4% - 5% interest
e. Can buy ?off market?
f. Credit not at all important
g. No real estate agent fees
h. So a $300,000 house
i. Is $25,000 down
j. $1,300 to $1,475 a month payments
k. Then taxes, utilities
l. You bring in the rehab money
m. Tend to be faster to very quick
n. Probably need to be trained on how to put it together
- Member since 2026 · 4 posts · 1 vote6h
Welcome @Gina Petit-Homme . How exciting to be stepping into this new adventure! I am happy to help you with your project once you find it. I always use getinvestmentmoneynow.com for my project needs. Let’s chat and see how we can help each other. Looking forward to talking to you more in the future.
- 3hArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 972 votes
Quote from @Gina Petit-Homme:
Hello, I am a new real estate investor based in Georgia, looking to get started in the fix-and-flip business. I am seeking guidance and mentorship from experienced real estate professionals who can help me identify good investment opportunities, evaluate potential deals, and connect with reliable lenders who offer financing for both property acquisition and renovations.
I am serious about getting started, building the right relationships, and learning how to make smart, profitable investments. I would greatly appreciate any guidance, resources, or connections that could help me take the next steps in my real estate investing journey. Thank you!
Hey Gina, getting started in flips is all about learning how to run the numbers and finding deals with enough room for profit after rehab and holding costs. I'd also look beyond your local market if you're open to it. The Midwest has some good off-market and undervalued opportunities, and having access to reliable local lenders, contractors, and a boots-on-the-ground team can make a big difference. Start with one solid deal, build your network, and grow from there.
- 1hJames WachobBusiness MemberReal Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 895 votes
Hey @Gina Petit-Homme !
Welcome to the investing world! My advice would be to spend time learning how to analyze deals before jumping into your first flip. Get comfortable estimating renovation costs, determining ARV using recent comparable sales, and accounting for holding costs, financing, and selling expenses. Having a deal that looks profitable on paper is one thing, but leaving enough room for unexpected expenses is what can make or break a flip.
I'd also start building relationships with local agents, contractors, and lenders who regularly work with investors. If possible, find someone who can walk you through an actual renovation so you can get a better understanding of the process before putting your own money on the line.
I'm a real estate agent based in Memphis, TN, and I work with investors building real estate portfolios. If you're ever open to exploring opportunities outside Georgia, Memphis could be worth researching. I'd be happy to connect, share some market insight, and help you understand what opportunities are available here. Best of luck getting started!
Gina, you've already got good lender advice here, so I'll add the deal-finding side, since that's where most first flips stall. In Georgia, foreclosure auctions are held on the first Tuesday of each month at the county courthouse, and the notices run in each county's legal newspaper beforehand, so you can track a few months of them and compare opening bids to sold comps without bidding at all. County code-enforcement records and tax-delinquency lists are worth checking too, because a house with several problems stacked up and an owner who lives out of town is often a seller who wants a quick, as-is sale. Pick one county, learn two or three neighborhoods well, and start writing offers before you worry about scaling.
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