Investors love fix and flip properties because they provide them with a substantial return in a relatively short time period, and these returns serve as a good way to move on to larger, more long-term investments. Finding the right property to flip can be somewhat difficult however, especially in today’s competitive real estate market. As a mortgage broker or private lender, your role in helping clients navigate these challenges is invaluable.
The best properties to flip are in high demand both from browsing homebuyers and other real estate investors in the same market. It helps to have a clear idea of the types of properties your clients are looking for though, and there are also some techniques you can utilize to help your client find them. But how can you position yourself as a trusted partner and attract more fix-and-flip clients? Let’s break it down.
Before diving into how to find the best properties, let’s talk about why fix-and-flip financing should be a key part of your lending portfolio.
Finding the right property to flip is one of the biggest challenges for investors. Here’s how you, as a broker or wholesale lender, can guide them through the process:
A home flip works best when an investor can find a distressed property that can be brought up to modern homebuyer standards with little work. Encourage your clients to focus on distressed properties, as they offer the best opportunities for value appreciation. These properties typically fall into two categories:
How Brokers Can Help:
The best fix-and-flip deals often never make it to the MLS. Real estate investors rely on brokers and wholesalers to source these off-market properties.
Where to Look:
How Brokers Can Help:
Smart investors use market data to identify profitable neighborhoods and predict appreciation trends. As a broker, position yourself as a data-driven advisor by leveraging technology.
Key Data Points to Analyze:
How Brokers Can Help:
As the saying goes: time is money, and when home flipping it can make all the difference in your client’s investment. The most ideal properties for flipping will get snatched up quickly, especially if your client is competing with other fix and flip investors in the same market. Be on the lookout for opportunities, and be prepared to move fast on the deals that you do find. The most successful investors have their financing lined up before they even find a property.
How Brokers Can Help:
Financing can be a major issue that gets in the way of your client’s ability to secure a fix & flip opportunity. Traditional mortgage loans often have an extensive application process which can take weeks or even months to complete. Additionally, their 15 or 30-year loan period doesn’t make much sense for short-term projects like home flips. This is where private financing comes in. There are private lenders who offer specialized loans designed for flipping, which provide your clients with renovation funds on top of the funds needed to secure the purchase of a property. They are also much more flexible with loan terms, so you can customize the loan period and repayment options to maximize the value of your clients investment.
Working with a direct private lender like RCN Capital enables you to gain a competitive edge in the fix-and-flip market as a broker. Here’s why:
The easiest way to save on rental property financing is to find a trusted lender to get your clients 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 investments. If you are a broker or wholesale partner looking to provide financing for a real estate project, RCN Capital has competitive loan options available.
Are you looking to provide your clients with the best fix and flip financing solutions? Contact RCN Capital today and expand your business with a trusted lending partner.