What matters most to you when funding a flip?

Question

When you’re funding a flip, what’s the biggest priority: speed, leverage, flexibility, or cost?

I’ve seen deals fall apart simply due to timing, so I’m curious how others weigh these factors when choosing financing.

Bruce Woodruff · Answer

Generally speed. Less holding costs, plus hitting the market for resell at the right time.

But.........in order to stick to a schedule, you need a tight, iron-clad Scope Of Work. There can be no surprises. So first then, you need a really, really, really good Home Inspection for starts, followed by a thorough walk-through with an old veteran General Contractor. He will add depth and pricing to the HI report. Identify and write down every detail that will be renovated in any way and attach a price and time to it.

Andy Sabisch · Answer

Speed of course but the overall cost - points, interest rate, down payment - all play a role in financing a flip. The carrying costs can kill a deal or any profit it might have so that all comes into play when selecting a funding source. Speed . . . well, the first one with any lender will take the longest but you do not want to get down to the wire to close and find out they can't close. Thoroughly vet any lender as claims are easy to make, delivering on them is another.

What matters most to you when funding a flip?

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