How Smart Brokers Are Closing More Loans with Fix and Flip Funding

Home flipping has become an increasingly viable strategy for real estate investors looking for creative ways to combat the ongoing housing shortage. Not only does fix and flipping provide much needed housing to underserved areas, but it can also offer investors an attractive return. Brokers too can benefit from adding specialized fix and flip programs to their loan offerings. Partnering with private wholesale lenders gets you access to fast-closing loan products designed for flipping, with added benefits like 100% financing for renovation costs. Read on as we discuss the key advantages of fix and flip loans in today’s competitive market and how offering them can help grow your lending business.

Understanding the Fix and Flip Investor’s Mindset

If you’ve ever worked with a house flipper before, then you know how important speed is when it comes to these deals. Fast approvals allow investors to beat the competition on lucrative deal opportunities and get to work sooner. Another key aspect, however, is flexibility. The ability to modify loan terms to match the unpredictable timelines that come with rehab projects can be hugely beneficial. Having flexible loan programs at your disposal also helps investors deal with other challenges like budget overruns and market shifts. Take time to get to know your clients, including their long-term goals, risk tolerance, and how they typically approach these projects. This allows you to match them with the financing option that best suits their specific needs.

Why Strategic Financing Sets Brokers Apart

The key to differentiating yourself in the competitive financing landscape is offering customizable loan structures that make you an investor’s go-to resource. The benefit of working with private lenders is that they are much more flexible than traditional loan providers when it comes to home flips. Not only do they have less stringent criteria for approval, but they can also deliver funding faster, and their programs typically include additional funds to cover renovation expenses.

Be sure to compare loan options from a number of different lenders and look into the track record of your chosen partner, including if they offer broker-friendly partnership programs. This will ensure both you and your clients get a smooth financing experience, and helps you establish lasting business relationships.

Key Fix and Flip Loan Features That Attract Clients

Fix and flip investors want financing tailored to their needs, so they can complete deals faster and see returns sooner. That’s why offering loans specifically designed for home flipping, with quick closing times, additional renovation funding, and competitive interest rates, helps you win more business. Working with private lenders gets you access to these programs, and it also enables you to fund deals in cases where your clients have less-than-perfect credit or non-W-2 income. That’s because private lenders are more focused on the investment potential of a property than a borrower’s credit score when it comes to loan approval. Fix and flip loans also come with more flexible draw schedules, which means your clients can get access to the funding they need to complete their projects quickly, reducing holding costs and improving their returns.

How to Market Your Fix and Flip Financing Services

So, you’ve gotten set up with a private lender and have started offering fix and flip loans, but what’s next? How do you actually break into the market to reach fix and flip investors? You can start by joining local real estate groups and attending fix and flip oriented conferences to meet investors face to face. If you have an existing email list, share deal opportunities to stoke interest among your past clients and get conversations started about home flipping. Social media can also be a great place to reach fix and flip investors, and there’s a good chance there’s already an investor specific group for your area on Facebook.

Speaking of social media, establishing your presence on these platforms helps you build a recognizable brand which allows you to effectively reach this audience. For example, you can offer educational content like webinars or market updates to showcase your expertise. Once you have a few deals under your belt, you can share these success stories to help build social proof. Testimonials from clients & before-and-after photos are always well received, and you can end the post with a call to action that encourages followers to reach out and begin home flipping for themselves.

Partner with a Wholesale Lender to Position Yourself for Success

The financing partner you choose to work with will have a major impact on how successful you are in the fix and flip market. A good lending partner will not only be able to provide financing, but will value communication, speed, and transparency when funding deals. As we mentioned, be sure to investigate your chosen partner’s reputation and read reviews to get an idea of how they typically operate. Look for those who go above and beyond, such as those that offer programs that reward their broker partners, and who offer additional resources like marketing materials that make it easier for you to win more business.

RCN Capital

To help your clients maximize the returns on their next investment, 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 & flip financing to your clients, RCN Capital has competitive loan options and an award-winning broker referral program available to partners.