One question I ask every investor we work with is this:“How do you typically evaluate potential financing partners?”

Hey everyone,I’m working on a retail fix-and-flip in Central Florida using a hard money lender (90% purchase / 100% rehab), and I’m structuring the remaining capital stack.For those of you who’ve done similar deals, I’d love to learn how you typically structure short-term capital used for down payment and closing costs on these types of projects.A few questions for the group:Do you usually see this structured as a flat return or an annualized return?

I'm having trouble deciding if it would bring more as an investment or as a typical owner occupied sale. 

It’s not always about having millions in cash, but it’s about who gets the tax benefits.Like others have mentioned, you’re typically not jumping into large multifamily deals with only 1–3% down using traditional financing, even if the numbers cash flow.

If you do finance, what are typically the terms?

Timeline on a basic turnover is typically 2-3 weeks.

There is lender-to-lender finance but typically that is for first-position loans and loan-to-values of 50 to 60%.

Many contractors won’t agree to this.The cheapest contractors typically work for cash to avoid taxes and want to be paid immediately when they are done.

Alternatively because typically primary bedrooms are larger and have their own bath, maybe you can double up in those rooms.

For fix and flips, short-term rehab or bridge loans can fund both the purchase and renovation and typically close faster than traditional financing.