Speed vs Rates — What Wins More Deals?

Question

In competitive markets, fast funding often matters more than shaving a few basis points. Bridge or fix & flip loans can help investors secure deals quickly and refinance later. How are flippers here balancing speed and cost?

Nick Belsky · Answer

Sort of a strange questions as the two are not super related with flipping. Lenders that offer speed charge more points, not necessarily a higher rate. Rate comes with higher leverage or to those with less experience. Liquidity and speed are usually most important to flippers. Rate is not at the forefront of most situations unless the project is expected to take over 6-9 months to complete, then the carrying costs have more impact than say a 2-3 month project. Staying liquid (with lower costs) and being able to move quickly (getting in and out) are far more important. Faster lenders charge more typically. Fast and high leverage is a blend. Experience plays a role in all this as well.

Cheers!

Speed vs Rates — What Wins More Deals?

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