How do you compare lenders to save big on your flip?

How do you compare lenders to save big on your flip?

Real Estate Consultant · CA · Member since 2024 · 32 posts · 5 votes

Hey BiggerPockets flippers,

Choosing the right lender is make-or-break for a fix-and-flip deal. A slight difference in interest rates or fees can turn into a budget blowout that eats your profits. As someone who’s built tools to help investors streamline financing, I’ve seen how much comparing lenders can save you.

What's your strategy for picking the best lender? Are you hunting for the lowest rate, prioritizing fast funding, or digging into loan terms like LTV? Any go-to methods or tools for comparing rates to keep your deal on track?

Let’s share some tips to help each other maximize profits and avoid those costly surprises!

Cheers,

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Kevin IveyPro Member
Flipper/Rehabber · Marysville, WA · Member since 2020 · 216 posts · 126 votes
1y

I keep lenders in two buckets fund fast 7 days or less no physical appraisal, and more along trad 30 days typical appraisal.  

Ease of process and then construction draw expenses and timing become more important to me.  Most of my flips are less than 5 months so interest rate matters but other factors can be more important.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @Ekaterina Lansky:

    Hey BiggerPockets flippers,

    Choosing the right lender is make-or-break for a fix-and-flip deal. A slight difference in interest rates or fees can turn into a budget blowout that eats your profits. As someone who’s built tools to help investors streamline financing, I’ve seen how much comparing lenders can save you.

    What's your strategy for picking the best lender? Are you hunting for the lowest rate, prioritizing fast funding, or digging into loan terms like LTV? Any go-to methods or tools for comparing rates to keep your deal on track?

    Let’s share some tips to help each other maximize profits and avoid those costly surprises!

    Cheers,


    We are bias as a lender but I also am an investor - I want to work with someone who undertands the programs and what I am trying to accomplish and know which loan is best fit. For example prepayment penalties and LTV can make a huge difference on loans- having a lender explain the options to me and explain how they impact the loan are huge.

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  • Kevin IveyPro Member
    Flipper/Rehabber · Marysville, WA · Member since 2020 · 216 posts · 126 votes
    1y

    I keep lenders in two buckets fund fast 7 days or less no physical appraisal, and more along trad 30 days typical appraisal.  

    Ease of process and then construction draw expenses and timing become more important to me.  Most of my flips are less than 5 months so interest rate matters but other factors can be more important.

  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    1y

    I like working with lenders who make the process as easy as possible.  I'm willing to sacrifice a few BPS to avoid an exhaustive underwriting process.  

    It's important to compare the overall value of 

    -Loan Terms/Cost (interest rates + fees)

    -Leverage Offered (LTC vs ARV maximums)

    -Loan Term (always want a minimum 12 month term with no PPP even if I'll be out in 90 days)

    - Draw Process for rehab funds (how easy do they make it)

    - Reputation ( what do google reviews say/do I know any other investors who have used them)

    -Communication (how frictionless is it to communicate with them? I try not to be a needy client but expect reasonable response time/updates)

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