How to Build a Repeat Client Base of Fix and Flip Investors

Fix and flip investing has always been a great strategy for making returns through real estate, but in today’s low inventory market it makes even more sense. It gives investors the chance to provide desirable homes to underserved markets while also offering them solid returns. Brokers and lending partners play a key role in helping investors find success with fix and flip projects. The brokers who understand the unique needs of these clients and provide consistent value will build lasting relationships with the opportunity for repeat business. Both investors and lending partners stand to benefit from building these partnerships.

Are you looking to expand your client base of fix and flip investors? Continue reading for our quick guide with some useful tips and key takeaways for lending partners.

Understand the Investor Mindset

The first step in building a base of fix and flip clients is taking time to understand these investors’ goals and what they need to achieve success. These clients value speed, flexibility, and certainty in funding which they can rely on for financing multiple deals. Fix and flip projects offer fast ROI to investors, which means they will be looking for ways to minimize friction to help facilitate these deals. Investors also value partners who have a good understanding of deal flow and timing, and they will prefer working with partners who incorporate these factors into their process.

Key Takeaway: As you spend more time understanding an investor’s goals, you can provide more relevant insights and better service which positions you as a valuable lending partner.

Specialize in Investment-Ready Lending Solutions

As a lending partner, one of your main responsibilities is connecting clients with the right financing solution. For fix and flip projects, this means specialized loans that can close fast and provide additional funds for renovations on top of acquisition costs. Conventional mortgages have longer loan periods which don’t really fit the timeline of a flip, and they have lengthy application processes which can cause investors to miss lucrative opportunities. Instead, you should look to offer short-term, interest-only loans which can close quickly to meet the needs of these investors.

Key Takeaway: Seek out financing solutions from private lenders who specialize in fix and flip financing, so you can provide more suitable funding for these projects.

Be a Resource, Not Just a Broker

The key to building long-term relationships with your clients is offering more than just loan products. By positioning yourself as an expert resource on all things real estate related, you can offer additional value which encourages clients to turn to you for advice. You can share insights on market data, investment opportunities, rehab budgeting, and investment advice for instance. Or you can connect investors with other real estate professionals like contractors, appraisers, and realtors. Your goal is to become a vital part of a successful investor’s team.

Key Takeaway: Information and connection can be just as valuable as capital, especially if you’re looking to build long-term investor relationships.

Master the Art of Fast, Reliable Closings

As mentioned, fix and flip investors value being able to receive funding both quickly and reliably. They often lose out on lucrative deals because they get tied up in the drawn-out process of securing a loan. As a lending partner, you can provide additional value by offering a streamlined financing process to get deals funded faster. Create a system that allows for faster underwriting and quicker approvals, and be sure to maintain consistent communication with both the borrower and private lender your connecting them with.

Key Takeaway: As you continue to work with the same lending partners, you may gain access to additional benefits like a streamlined underwriting process and resources that can help you close more deals.

Stay in Touch Between Deals

Building lasting relationships with investors is a two-way street. You have to put effort into reaching out to your previous clients to help encourage them to come to you for future deals. A great way to achieve this is by having an email list, and staying in touch with these clients regularly. For instance, you can send them updates on market trends, new lending products, or investment opportunities. It can also be a good idea to check in with them after a certain amount of time post-close, and see if they are in the process of starting up another investment project.

Key Takeaway: Investors who feel remembered are more likely to return to you for repeat business, especially if you stay top of mind by keeping in regular contact with them.

Offer Broker Incentives or Loyalty Programs

Finally, we want to share some strategies for encouraging repeat business through incentives and loyalty programs. This can be something as simple as a small gift for each deal closed, or a proper rewards program for repeat borrowers. Consider offering incentives such as preferred pricing, streamlined approval, or priority service for some of your best clients. Rewards like these help clients feel like they truly matter, and encourage them to return to you with any future deals.

Key Takeaway: Loyalty should be rewarded, and even small incentives can pay off in the long-term with a higher chance of repeat business.

RCN Capital

The best way to save on a real estate investment is to obtain financing from 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 professionals. If you are looking to provide fix & flip financing to your clients, RCN Capital has competitive loan options and an award-winning broker referral program available to partners.