Finding a trustworthy fix and flip lender can be the start of a beautiful, mutually beneficial business relationship.
But a misleading lender can lose you time and money. Lenders don’t like to turn away business. So, if your deal isn’t a solid, unwavering “yes,” you may hear, “I’ll see what I can do” or “we’re still working on this.” Sometimes, this templated response comes long after the initially promised deadline. Why? Often, the lender is working behind the scenes, trying to make a deal happen for you — even if it’s in the form of an exception.
Bottom line: Don’t leave your investment property loan pending on empty words. Look for a lender who will give you a quick answer and an honest assessment of your deal.
Before you sign — or pay — anything, look for these three qualities in rehab lenders.
#1. They’re Available.
Questions can arise quickly in this business, and you need answers ASAP. Getting in touch with your lender should be easy. A good lender will give you multiple points of contact, and they’ll answer your questions in a timely manner.
#2. The Terms of the Loan Are Clear.
Having clear, easy-to-understand loan terms is simply good business. A trustworthy lender will outline any fees and loan terms before you get to the closing table. Murky fix and flip loan terms can lead to unrealistic expectations of a deal. A reliable lender will willingly help you understand what you’re signing.
#3. They Know Their Products Inside Out.
An educated, experienced lender will have a thorough understanding of their suite of products and services. Some fix and flip lenders may offer several different rehab loans. While that may sound good, make sure the lender knows exactly what they’re trying to sell you. The best advice is to sidestep companies with an excess of offerings and find a lender with one or two loan programs. Chances are these programs are effective, beneficial and clear from the start.
Before Contacting a Lender, Know Your Deal.
Although tempting, do not lean on a lender’s expertise and assessment. Make sure you have a solid grasp on the intricacies of your deal before working with a lender. Understand the property, its repair needs and the ARV (outside of what the real estate agent is touting). Awareness and insight into your own deal gives you a solid foundation in securing a house flipping loan.
Always Ask a Potential Lender These Three Questions.
When searching for funding for flipping, there are three proactive questions you should ask:
- Who’s my point of contact?
- What are all the fees associated with this house flip loan?
- How will this process work?
Work with a lender you can trust. In addition to transparent, straightforward loan terms, Residential Capital Partners will give you a quick answer, so you can start building your business. Let us fund your next flip. Apply today in just 14 minutes.
