Speed vs. Certainty in Flip Financing
In competitive flip markets, speed often determines who wins the deal. I’m seeing more investors prioritize certainty of close over shaving a few basis points. Curious how others are structuring short-term capital to stay competitive without overexposing themselves.
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Great post! I prioritize lenders who have no points/fees over almost everyone else. Eliminating the 2 pts or 3 pts upfront is a big margin when you look at the total loan amount. The other thing is that we almost exclusively use private capital. It takes time to build up a list but you don't really need that many. It is a high-trust transaction and they need to know the timeline upfront. I email everyone and ask who has funds ready to deploy in 7 days.