Today’s real estate market is more competitive than ever, with high rates and low inventory making it difficult for investors in almost every market. Lenders are also tightening loan requirements, making it harder for borrowers to gain access to leverage. However, for investors who are actively flipping houses, there are still lenders who can offer high-leverage loan options. RCN Capital’s Fix & Flip program is designed for renovation projects, with financing for up to 100% of the purchase price for experienced home flippers, and 100% of rehab costs for investors of any level.
Read on to learn how our 100% financing program can help real estate investors and lending partners find success in the fix & flip space.
Higher leverage enables home flippers to take on more deals because it allows them to achieve a greater cash-on-cash return with each project. Since this program covers both purchase and rehab costs, it means investors don’t have to rely on their own funds to make deals happen, and they can scale their fix & flip operation faster.
Let’s take a look at 2 examples featuring a $300,000 home purchase.
First is the deal with a 90% purchase price loan:
Now let’s look at the same deal with 100% of the purchase price financed:
At first glance, it might look like the gross profit decreased, but you need to consider that the second scenario only required $13,000 of the investor’s own capital. The net profit for each deal is exactly the same at $94,000. However, the cash-on-cash return went from 318% to a massive 823%.
Experienced home flippers tend to prioritize liquidity & speed when seeking out financing. The great thing about RCN Capital’s 100% financing program is that it’s not just a high-leverage loan, it’s also incredibly fast. Closings happen in as little as 10 days, and every borrower gets a dedicated loan officer they can reach out to if any issues come up.
For lending partners, it means you can get deals funded with confidence, and you can remove the common barriers that stop deals from getting done. It also means your borrowers can perform multiple flips at the same time, boosting your deal volume even higher.
Fast and reliable financing gives real estate investors an edge in highly competitive markets. Speed is crucial for making winning offers on lucrative fix & flip deals, and sellers will prioritize cash-equivalent offers made without contingencies. RCN Capital has a proven track record of funding home flips, and our specialized Fix & Flip program allows borrowers to make quicker offers on properties and secure more opportunities. Lending partners can also benefit from being a reliable source of fix & flip financing, helping you build stronger relationships with clients and close more deals through repeat business.
Are you a broker or lender that’s active in the real estate space? Adding powerful programs to your offerings like 100% fix & flip financing can help you grow your lending operation. It helps you reach experienced fix & flip investors, as well as those looking to maximize leverage on their home flips. It can also help you revive deals that might otherwise fall through due to insufficient liquidity. This means you can fund a wider range of deals, and you can position yourself as a lender that funds the types of deal that others simply can’t.
The other way to provide more value to investors is by offering your market expertise to help them make better informed decisions. Educate them on how leverage can be the key to more profitable deals and faster scaling with home flipping. Try and shift the conversation from a rate-focus to how the specialized programs you offer can help clients reach their investment goals. Also showcase how flexible financing solutions allow them to expand their criteria and take part in a wider range of deals. Walking clients through these important aspects of real estate investing & offering relevant advice will allow you to stand out in a crowded lending space. Your clients will know they can rely on you not just for financing deals, but also for the crucial guidance you can provide.
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.