Fix & Flip: How Often Does Experience Level Affect Your Financing?

Question

Have you ever had a deal declined or downsized because of limited flip history? How much experience did lenders require in your case?

Andy Sabisch · Answer

Using our lender, we have not had an issue with experience after the first few deals.  We have seen that lenders that offer 100% financing with no experience tend to be less than truthful and the deal tends to go off the rails before it closes.  We had to provide proof of 3 flips in the last 24 months.  If that is an issue, try partnering with someone that has the experience and then after a deal or two, you can use that to get the financing you are looking for.

Remember, they are asking for experience to ensure their investment is secure so being honest ensures that the lenders assessment of the deal confirms yours (or shows where your estimate is overly positive)