New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 472 votes
Was it the down payment, contractor budget, or finding a lender that believed in your ARV? First-time flippers often face the same roadblocks, what slowed you down most on your first deal?
First timer here! For me it's been a mix between the down payment and finding lender that will lend in "rural" areas. Because I'm a first timer, lenders are requiring 85% LTC so that's been the biggest challenge so far and instantly takes me out of moving forward. The zoning of properties has been my second challenge. Finding properties that lenders are willing to lend on based on it being considered urban vs rural, even if there are comps to justify ARV. Wasn't anticipating this being a roadblock.
For me, the hardest part wasn’t the money, it was credibility. On your first flip, every lender is really underwriting you, not the deal. They want to know you won’t blow the rehab budget, stall out, or panic when something goes sideways.
Once I had one project under my belt with clean documentation, lenders stopped questioning my ARVs and started competing for my business.
A few lessons from that first deal:
• Show up with a real scope of work
• Know your comps better than the lender
• Bring a contractor who’s licensed, insured, and organized
• Present the numbers like a business, not a hope
After that, funding becomes a systems game instead of a confidence test.