The Hard Truth: Most Investors Don’t Lose Money on the Deal… They Lose It on the Fund

[Jackie Carmichael]

I’ve been watching a pattern repeat over and over in this market.

It’s rarely the ARV math that kills an investor.

It’s not usually the contractor bid (though those hurt).

It’s not even paying a little too much.

The real deal-killer? Capital that doesn’t show up on time, or isn’t structured right.

Here’s what I mean:

• You lock in a flip at 65% ARV — but your lender can’t close in 2 weeks.
• You’ve got a BRRRR that should cash flow — but your bank won’t count rental income for approval.
• You’ve got equity but no liquidity — and you miss the deal while chasing a HELOC.

In today’s market, it’s not the “best numbers” that win — it’s the fastest and most flexible capital.

That’s why smart investors are:

• Getting pre-approved before the deal so they can write offers with confidence.
• Using bridge-to-rental loans to buy and stabilize, then refinancing once rents are seasoned.
• Leveraging DSCR loans so the property pays for itself instead of being capped by their W-2.

I’m curious — for those of you actively investing right now:

What’s been your biggest financing roadblock — down payment, speed to close, or loan structure?

If you’ve got a deal in your pipeline and want to make sure funding doesn’t become the bottleneck, feel free to DM me. I’m happy to share how we’re structuring deals for investors in 2025 so they can focus on execution, not chasing capital.

[Jay Hurst]

Quote from @Jackie Carmichael:

I’ve been watching a pattern repeat over and over in this market.

It's rarely the ARV math that kills an investor.

It’s not usually the contractor bid (though those hurt).

It’s not even paying a little too much.

The real deal-killer? Capital that doesn’t show up on time, or isn’t structured right.

Here’s what I mean:

• You lock in a flip at 65% ARV — but your lender can't close in 2 weeks.
• You've got a BRRRR that should cash flow — but your bank won't count rental income for approval.
• You've got equity but no liquidity — and you miss the deal while chasing a HELOC.

In today’s market, it’s not the “best numbers” that win — it’s the fastest and most flexible capital.

That’s why smart investors are:

• Getting pre-approved before the deal so they can write offers with confidence.
• Using bridge-to-rental loans to buy and stabilize, then refinancing once rents are seasoned.
• Leveraging DSCR loans so the property pays for itself instead of being capped by their W-2.

I’m curious — for those of you actively investing right now:

What’s been your biggest financing roadblock — down payment, speed to close, or loan structure?

If you’ve got a deal in your pipeline and want to make sure funding doesn’t become the bottleneck, feel free to DM me. I’m happy to share how we’re structuring deals for investors in 2025 so they can focus on execution, not chasing capital.

We have a line of credit product we call "equity leverager" that allows an investor to collatalize up to four properties, and use the equity to buy a new property up to 100% LTC. It is the ultmate rehab program (in my humble aopnion anyway) as it is cheaper then rehab money AND you pay one set of origination realted closing costs, but you can use the funds multiple times as it is a revolving line. When we put it in close we thought it would fly of the shelves.

Realty: We barely use it because just what you pointed out. Often investors are no pro active. They do not think ahead, and do not want to spend any money until they have the deal identified. Well, guess what? It is usually too late at that point unless you actually have the cash.