I have a borrower who's a first-time flipper but has really strong financials: 750 FICO, $200k liquid, buying a $180k house in Memphis, ARV $280k. The rehab is light ($30k). They've done extensive research and have a contractor lined up. Which lenders will work with a first-timer with this profile?
I'm in a market where prices have softened 8-10% over the past 12 months. I have borrowers who still want to flip. Am I doing them a disservice by placing their loans? Should I be more proactive about discouraging deals that don't have enough margin?
I've had 3 fix and flip borrowers in the past year who ran out of money mid-rehab because costs came in higher than expected. Two of them had to do emergency refinances at terrible terms. How do you help borrowers build realistic rehab budgets and what contingency do you recommend?
ok so i'm seeing a lot of my fix and flip borrowers getting frustrated because the margins just aren't there like they used to be. higher purchase prices, higher material costs, higher rates. some are walking away from deals they would have jumped on 2 years ago. are lenders adjusting their programs at all? lower rates? higher LTV? anything?