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As a relationship-oriented private lender, Residential Capital Partners takes pride in who we hire. Our criteria are simple, yet stringent: personal experience in real estate investing and a proven track record of treating investors like partners — as opposed to a transaction. Which is why we’re especially excited to welcome Rodney Young, a former HomeVestors loan development manager — and very familiar face — to our team.

The coronavirus outbreak— and the subsequent turbulence of the stock market—has revealed stark differences between private lenders’ customer service models:

1. There are hard money lenders that rely on Wall Street to buy loans they have placed on a warehouse line. They treat loans as transactions.
2. And, there are lenders that have used their own balance sheet to fund loans. They treat loans as relationships.

Coronavirus has spread across the globe in rapid time, disrupting nearly every industry in its wake. House flipping is no exception. Real estate investors are now forced to navigate new challenges to secure funding. Banks are preoccupied and most hard money or private lenders are either sidelined, denying loans or raising interest rates and cash reserve requirements. The clock is ticking—what do you do?

Scott Gurten and his partner Nick Ferroni have funded five house flips through Residential Capital Partners and counting. Two were house flipping success stories that caught the attention of Philadelphia Magazine.

Their house flip on South 45th street was news-worthy due to Scott and Nick’s masterful renovation. Like many homes in the Northeast, part of the townhome’s charm was its history. Scott and Nick wanted to preserve the home’s character while modernizing key features.

Now that you’ve used fix and flip financing to renovate your most recent rental property, it’s time to put it on the market.

The purpose of flipping houses — or any property — is to realize a profit. Period. From the minute you secure a property with a hard money loan, your focus is turning your property into a tidy profit that you can take to the bank.

Finding a trustworthy fix and flip lender can be the start of a beautiful, mutually beneficial business relationship.

For many real estate investors, rental properties deliver a dream come true: passive income. Done right, your rental property will produce mailbox money. Your tenants pay rent, you provide maintenance here and there and your property appreciates while you enjoy the financial security of a cash-flowing asset. Even more, you can have pride in knowing you put your money to work for you.

Conventional wisdom says that late spring and early summer is the best time to sell a home or an investment property, but real estate investors and hard money lenders alike know that winter poses its own special opportunities, and that the colder months can be an ideal time to make your move.

Aside from the fact that hard money loans or property investment loans are also available in winter, there are other reasons why the winter months could be prime time to finance a house flip.

A large segment of today’s housing market is being fueled by flippers and real estate investors who seek to turn a hard money loan or investment property loan into a nice, tidy profit.

While it’s not unusual to see someone parlay a rehab loan into a nice five- to six-figure profit, there are definite hazards that come with flipping. Many of these hazards lie not within the investment property, but in the assumptions of the renovator.