New to flipping: Interviewing banks and CPAs

Louisville, Kentucky
Rehabbing & House Flipping
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New to flipping: Interviewing banks and CPAs

Divine Bunch
Member since 2022 · 2 posts · 2 votes

Hi everyone, I'm getting started with property flips and I have 2 questions:

1. Can you recommend good CPAs that are familiar with Kentucky laws/regulations, and preferably focus on working with RE investors?

2. Can you recommend good questions to ask lenders? I'm talking with banks and private money lenders this week and I'd like to know what I don't know lol.

Thanks in advance!

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Cory Lader
Member since 2021 · 36 posts · 18 votes
4y

I wouldn't even worry about an accountant right now. They are really low-hanging fruit in the grand scheme of things. I'd focus on finding a contractor and then finding the deal. Those are the hardest pieces of the puzzle. I also wouldn't go to conventional banks. I feel like 90% of the big-name banks won't lend on fix and flips so it's not a great use of time. I'd also reach out to some of the lenders listed in the BP network. Your primary focus for lenders should be hard or private money. 

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    4y
    Quote from @Divine Bunch:

    Hi everyone, I'm getting started with property flips and I have 2 questions:

    1. Can you recommend good CPAs that are familiar with Kentucky laws/regulations, and preferably focus on working with RE investors?

    2. Can you recommend good questions to ask lenders? I'm talking with banks and private money lenders this week and I'd like to know what I don't know lol.

    Thanks in advance!


     Hey Divine! 

    Do you have a property in mind already? If so, are you currently working with a contractor? Most lenders want to see that you are working with a contractor if you do not have flipping experience. 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Divine Bunch
    OP
    Member since 2022 · 2 posts · 2 votes
    4y

    Hi Erik, thanks for your reply! I also have interviews with contractors set up between today and tomorrow. However, if I'm focusing on cosmetic rehabs in the beginning (paint, fixtures, flooring, etc), will banks still care a lot about whether I'm working with a contractor?

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    4y
    Quote from @Divine Bunch:

    Hi Erik, thanks for your reply! I also have interviews with contractors set up between today and tomorrow. However, if I'm focusing on cosmetic rehabs in the beginning (paint, fixtures, flooring, etc), will banks still care a lot about whether I'm working with a contractor?


    Hey Divine, some will and some won't it just depends on how much the repairs are and if you have had experience doing these kind of repairs. How much are you looking to finance for the purchase and repairs? And what is the ARV?

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Cory Lader
    Member since 2021 · 36 posts · 18 votes
    4y

    I wouldn't even worry about an accountant right now. They are really low-hanging fruit in the grand scheme of things. I'd focus on finding a contractor and then finding the deal. Those are the hardest pieces of the puzzle. I also wouldn't go to conventional banks. I feel like 90% of the big-name banks won't lend on fix and flips so it's not a great use of time. I'd also reach out to some of the lenders listed in the BP network. Your primary focus for lenders should be hard or private money. 

    1Reply
  • Brandon BeardtPro Member
    Lender · La Crescenta, CA · Member since 2021 · 261 posts · 157 votes
    4y
    Quote from @Divine Bunch:

    Hi everyone, I'm getting started with property flips and I have 2 questions:

    1. Can you recommend good CPAs that are familiar with Kentucky laws/regulations, and preferably focus on working with RE investors?

    2. Can you recommend good questions to ask lenders? I'm talking with banks and private money lenders this week and I'd like to know what I don't know lol.

    Thanks in advance!


     Hi Davine,

    Congrats on starting your flipping journey! To answer your second question, there are a bunch of questions you should be asking lenders/brokers. I think a good base is inquiring about the following: requirements for qualification, what the loan process is going to be like, time frames & time lines, the cost and fees of getting the loan, any prepayment penalties, what the process is like post closing, etc. There are probably many more questions of this nature to be asked but it always helps to understand what you're getting into. Wishing you the best of luck!

    [email protected]818-726-2418
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