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Maximizing Fix and Flips:

Strategies for Using Gap Funding

eisode 2 adam

In our upcoming YouTube segment

We’ll dive into an exciting case study showcasing how we’re empowering a client to dramatically scale her fix and flip business. Our focus is on a strategic financing solution tailored to meet the unique challenges and ambitions of investors in the real estate flipping arena.

Our client’s primary goal is to expand her project portfolio without being hindered by extensive out-of-pocket expenses. To achieve this, we’ve crafted a two-loan package designed to maximize her investment leverage while minimizing initial cash requirements. Typically, investors seek a loan covering a high percentage of the purchase price plus 100% of renovation costs, often referred to as 90/100 financing (10% down payment and full coverage of construction expenses). Although our client initially aimed for this ideal, her qualifications led us to explore more innovative avenues.

We leveraged our strong relationship with her to offer an even more advantageous financing package. Instead of the standard 90/100, we’re providing her with more than 90% Loan-to-Cost (LTC), with the first loan covering up to 85% LTC. This exceptional offer breaks the conventional financing barriers, enabling her to pursue more deals simultaneously with significantly reduced personal capital investment.

During the segment

We’ll discuss the intricacies of these loans, the thought process behind our tailored approach, and how this strategy enables our client to potentially double her project volume. We’ll explore how reducing the down payment and covering a substantial portion of the construction costs can be a game-changer for real estate investors looking to scale.

This story isn’t just about numbers; it’s about building partnerships, understanding investor needs, and leveraging financial products creatively to fuel growth. Join us as we unpack the details of this transformative financial strategy, providing viewers with insights into scaling their real estate investments and the power of innovative financing solutions.

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Adam