Fix-and-flip deals often depend on speed. A good opportunity can disappear quickly, and a slow file can create pressure on everyone involved. The fastest closings usually start with organized numbers and realistic expectations.
1. Guessing at the repair budget
A vague repair number makes the deal harder to evaluate. You do not need every invoice on the first call, but you should know the major repairs, estimated cost, and whether the work changes the resale value.
2. Overstating the after-repair value
Hard money lenders look closely at value. If the projected resale value is too aggressive, the LTV and exit plan can stop making sense.
3. Waiting too long on insurance
Proof of insurance is commonly needed. If the property is vacant, distressed, or under renovation, insurance can take more effort than expected.
4. Ignoring title or payoff issues
Old liens, unclear ownership, tax problems, or payoff surprises can slow down a closing. Bring known issues up early.
5. Not having a clear exit
The exit is how the loan gets repaid. For a flip, that may be the resale. For some investors, it may be a refinance after repairs. Either way, the exit should be clear enough to explain before closing.
If you want Ron to review a flip, bring the address, purchase price, repair estimate, expected resale value, requested loan amount, and target closing date.