You’re not alone. Nearly one year ago, lenders across the United States froze their fix-and-flip lending programs in response to the COVID-19 pandemic. Today, the market is strong and a resurgence of programs abounds—with one pesky problem: they’re nearly all the same.
Susan Andress is the Business Development Director for Residential Capital Partners’ Correspondent Lending Program. In this role, she’s heard the stories of many lenders facing this conundrum first-hand and helped them make their programs more competitive by using Residential Capital Partners’ platform.
Download the Fix & Flip Correspondent Lending Program Highlights to learn more about our 100% fix-and-flip lending program.
Blazing fast approvals.
The market is hot. Turn-around time is critical. Andress says, “The greatest value I can offer my correspondent is responsiveness and speed in underwriting and closing. We’ve made it a very tight process. Lenders will ask me: ‘How quickly can you close?’ and, I say: ‘As soon as you provide us with a complete file!’”
Residential Capital Partners’ program has an edge thanks to their relationships across the nation. Andress reports, “We have an exhaustive list of appraisers in every market which helps the turn-time on every deal. We also have two dedicated people monitoring the underwriting and approval process.”
Residential Capital Partners has also streamlined the process by providing proof of funds letters to approved borrowers. These letters help borrowers secure a contract from weary sellers trying to pick the right buyer.
“When a borrower walks into a property with a Residential Capital Partners proof of funds letter, they can close faster than any other buyer – they win the deal – period.”
– Susan Andress
100% funding.
Residential Capital Partners provides 100% funding for its fix-and-flip investors. The vast majority of other private lenders are stuck around 90% funding or so as a byproduct of their capital provider: Wall Street.
Residential Capital Partners is a privately-owned, balance sheet lender, which means borrowers have the peace of mind that Wall Street isn’t dictating Residential Capital Partners’ terms or loan availability if the market turns a different direction.
“There is no competition for our 100% fix-and-flip funding solution. At a 90% advance rate, borrowers can achieve a 24% ROI on their average deal. At a 100% advance rate, borrowers can achieve a 51% ROI on their average deal. That’s 2x the return for the same risk. They can do 4x as many deals!”
– Susan Andress
Flexibility for return borrowers.
To date, Residential Capital Partners extends loans to 47 states and counting, lending to fix-and-flip investors with a minimum credit score of 620 and prior rehab experience or rental ownership experience. It’s a great deal for repeat investors.
“If we have a borrower that’s paid on time and proven themselves to us, it’s an easy yes. We are always looking for ways to extend our relationships with and extend our loan commitments to our borrowers. By sticking to the fundamentals of low-to-moderate repairs on each deal, Residential Capital Partners helps borrowers grow faster and be successful.” Andress says.
The market is going strong. Is your rate competitive enough to bring investors to your door?
Download the Fix & Flip Correspondent Lending Program Highlights to learn more about our 100% fix-and-flip lending program.
