Real Estate Agent · IN · Member since 2024 · 9 posts · 6 votes
I am considering Kiavi, RCN Capital and Diamond Residential Mortgage Corp and don't know who to use. There are so many different fees! LOL. It would be for my first fix & flip. It would be nice if a lender could cover 100% of the deal and reimburse them at closing. I am looking to build my team as I'm writing this. Do you all think it is imperative to have a licensed GC?
Hey Irma, this is why most people opt to use a mortgage broker, mortgage brokers know the ins and outs of the industry. They take time to understand your deal and situation in depth and usually know the best product and placement for your loan.
I am considering Kiavi, RCN Capital and Diamond Residential Mortgage Corp and don't know who to use. There are so many different fees! LOL. It would be for my first fix & flip. It would be nice if a lender could cover 100% of the deal and reimburse them at closing. I am looking to build my team as I'm writing this. Do you all think it is imperative to have a licensed GC?
Hi @Irma Leibas, welcome to the BP Forum! What kind of property are you looking to flip? What's your expected ARV?
There are so many options out there but 100% financing is very risky, especially for your first flip. 20% down + 100% of rehab would be a good loan for you to get started. Closing costs such as processing fees + underwriting fees shouldn't be more than $2,000-ish. Using 100% financing means you’re borrowing every dollar for the purchase and rehab, which can leave you overleveraged from day one. If renovation costs balloon or sales prices drop, you’re on the hook for more debt than you can handle. This lack of equity (or “skin in the game”) can create cash flow strain, limit your options for exit strategies, and potentially lead to foreclosure if the project doesn’t go as planned. Having your own funds invested also provides a buffer against unexpected costs and motivates you to manage the project carefully, ensuring better decision-making and stronger relationships with lenders.