Flip Tip Summary
What should you look for in a lending partner? All lenders are not created equal, but it’s more important than just interest rates. Mark Filler of Jordan Capital Finance joins us to share this FlipNerd.com Expert Tip…How to choose a lending partner. Check it out!
Flip Tip Transcript:
Mike: Hey, it’s Mike Hambright from flipnerd.com and we have a quick expert tip to share with you from Mark Filler of Jordan Capital Finance. He’s going to share advice on how to choose the right lending partner.
This expert tip is sponsored by realtymogul.com, B2R Finance, and National Real Estate Insurance Group.
Mark: Great. Thanks a lot. I appreciate it. If I were an investor, I know that I would want to have a really strong relationship with my lender. And what I would look for as opposed to somebody who’s just kind of in and out of the market or just focused on making sure that the asset works for them and they’re rented at a low enough LTV in case things go wrong, I’d rather have a long-term relationship lender. So I’d look for somebody that can actually make a commitment up front in terms of how much capital they can commit to this particular borrower. I’d want to make sure that the amount that they’re willing to commit to me is enough to satisfy my needs over the next, call it, year. So obviously the lender has to be big enough to be able to offer that.
I’d also want to go to a lender that can change with my opportunities. So if my opportunity flips and then I change to rentals, or if it’s single-family and then I start buying eight flats, or if I start with flips and then I start doing new construction, I want somebody that can really move with me and really wants to be a long-term partner.
And then, lastly, I would say if you want to be able to borrow as much as possible then I think you should definitely focus on somebody who offers rehab draws throughout the construction process. And not only offers them, but offers them efficiently and consistently so that you can know that if you need money on a particular day because you’re one-third of the way done through your project, you’ll know exactly when you can get that money so that you can pay your suppliers and contractors.
Mike: We’d like to thank Crestar Funding, Mid-Atlantic IRA, and Renters Warehouse.
Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of flipnerd.com or any of its partners, advertisers, or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.