The real estate investing space is more competitive than it’s ever been, with low inventory and high rates making it harder to secure lucrative deal opportunities. This is especially true for fix and flip investing, where margins have gotten tighter, and good deals go quickly on the open market. The brokers and lending partners who understand these conditions know that speed has become a crucial factor for winning deals. Lenders that can deliver fast financing are able to provide clients with a key advantage, allowing them to fund deals before the competition who are stuck using conventional loans.
RCN Capital offers fix and flip investors a loan program that’s designed for renovation projects, with a streamlined underwriting process and additional financing for rehab work. Continue reading to learn how this program can help brokers and fix and flip investors close deals faster and win more often.
The reality of today’s fast-paced market is that investors who can make quicker, contingency-free offers are the ones who win deals. Most sellers receive multiple offers above asking price, so instead, certainty has become a more important factor. It also often comes down to whoever can make a good offer first. Traditional mortgages tend to have a drawn-out application process where it can take multiple weeks to get through each stage, and that just doesn’t work in a high-demand market. Specialized fix and flip financing gives buyers access to funding fast and allows them to make cash-equivalent offers on properties to beat the competition.
There are multiple scenarios where having access to fast funding can improve an investor’s chances to secure a deal. In competitive markets where buyers receive multiple offers, being first is often the key difference in winning the deal. However, investors may also need to close quickly in order to speed up their project timeline or secure more favorable pricing for the property & building materials. Faster financing is also great for time-sensitive deals like auctions or foreclosures that are perfect for flipping, but tend to have shorter deadlines for submitting offers.
RCN Capital’s loan programs are specifically built for real estate investments, not owner-occupied homes. The fix & flip program offers specific advantages for home flippers including 100% financing for rehab costs. This is a major benefit, because it means borrowers can focus on completing their project without having to dip into personal funds to get the work completed. The program also has a streamlined, asset-based underwriting process that helps investors get deals funded faster, and flexible terms that can be customized to the length of the project. Contrast this with the slower, more rigid nature of conventional loans, and you can see how these programs provide a clear advantage.
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WHAT MAKES RCN CAPITAL'S |
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Streamlined Underwriting for Fast Closings |
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A Shorter Loan Period Suitable for Flipping |
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100% Renovation Funding |
One of the main benefits of utilizing private loans is the asset-based underwriting process. Focusing on the asset means that there are fewer documentation requirements and less hoops to jump than with traditional mortgage loans. It also means that borrowers can still be approved for financing with less-than-perfect credit or non-W2 income, so long as the deal still makes good financial sense. That can significantly speed up the application process, and it allows brokers to get deals approved quicker and fund them more efficiently.
Faster closings are key to winning deals in competitive biddings situations. When lucrative deals go under contract in a matter of days, the investors who can make attractive offers first are more likely to secure these opportunities. For brokers, speed enables you to fund deals more reliably, with fewer deals that fall through due to mismatched timelines. You can highlight this speed as a competitive advantage that you provide, and your clients will come to know they can rely on you to fund deals quickly, helping you generate repeat business.
RCN Capital’s fix and flip program is built around the timeline of renovation projects, with shorter loan terms that are more suited to the quick turnaround of these deals. Loan periods range from 12 to 18 months and can be tailored to the specific length of an investment. Rehab funds are disbursed in a series of draws throughout the renovation phase, so borrowers always have enough funding to keep progress going smoothly. Each draw is dedicated to a specific stage of work, which also helps eliminate delays between renovation stages. Having financing that matches the pace of fix and flip projects can be a major benefit for lending partners, allowing you to better serve the investors who are active in the space.
Offering specialized financing programs helps brokers stand out in a crowded market and grow their lending business. Providing clients with fast and reliable funding allows you to build trust with investors and establish lasting business relationships. It means fewer missed opportunities and the ability to make your clients more competitive in a fast-paced real estate market. Along with generating referrals and repeat business, it also helps experienced investors pursue multiple deals at once which grows your deal pipeline. Visit our broker referral page to learn how RCN Capital can help you grow with specialized financing options.
In order to maximize the returns on your clients’ investments, partner with a lender that can provide you with the best leverages and rates. RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors and lending partners. If you are looking to offer fix and flip financing to your clients, RCN Capital has competitive loan options and an award-winning broker referral program available to partners.