Real Estate Broker · Member since 2025 · 196 posts · 79 votes
One of the biggest challenges in fix & flip investing isn’t the rehab — it’s capital timing. Delays between purchase, rehab draws, or exit financing can quickly impact margins.
For those actively flipping, how are you structuring funding to keep projects moving without tying up too much cash?
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
8mo
I agree. That is one of the biggest problems we had when we launched a fund. We either have too much capital and not enough deals or we are light on capital. Right now for us its the latter. For larger deals, we can draw down from larger funds, but the small deals sometimes vex us. Its really hard to balance having your capital deployed and meeting funding needs. We try to create a "waterfall" as far out as we can with redemptions and funding requirements. Having a line of credit and/or smaller, reliable investors on speed dial. It's not easy.
Lender · Grasonville, MD · Member since 2025 · 70 posts · 16 votes
8mo
As a lender, on my end, we provide clients with a detailed scope of work spreadsheet. We then go over it together to make sure the costs and timing make sense as part of ensuring they really understand it is not just about getting the loan, but being able to execute on it (especially when we are going over 6 month term flips). Often times I will ask the contractor to also get on a call to make sure all of us are confident in the process.