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Secured and Funded - A Foundation Fix & Flip Success!

Picture of Andrew Michael Andrew Michael : Oct 23, 2024 4:49:24 PM

Secured and Funded - A Foundation Fix & Flip Success!

Overcoming First-Time Investor Challenges

When Andrew Michael’s client approached us, they faced a challenge that many first-time investors encountered: no prior investment track record. Most lenders refuse to honor trade experience unless borrowers have previously owned and operated an investing entity. While a first-time investor, this borrower had extensive construction experience and completed the renovation themselves. They needed a lender who could see beyond the conventional track record requirements.

Key Pain Points Solved:

Challenge:  Most lenders require a history of flips before extending financing.
Solution:  We worked closely with the borrower, educating them throughout the process and valuing their construction background, even without a formal investment record.

Deal Highlights:

  • New Borrower: This was their first technical fix and flip.

  • Self-Managed Construction: The borrower completed the renovation, using their trade experience to transform the property.

  • Investor Education: We provided guidance and support to ensure they had a successful outcome.

Attracting First-Time Investors

At Foundation Specialty Finance (FSF), we evaluate compensating factors beyond the standard criteria set by aggregators. Whether you have a track record in construction or are stepping into your first fix-and-flip project, we value your unique experience and will work with you to structure a deal that fits.

Client Quote:
"Thank you so much, Andrew. We appreciate your kindness and support, and for always looking after us. You and Jon worked very hard to get us to a successful conclusion of this project. Thank you, Andrew, this means a lot to us." 
Best,
Tom and Sonia
Loan Highlights:

Loan Officer: Andrew Michael
Property Address: Lexington Park, MD 20653
Loan Type: Bridge Fix and Flip
Loan Amount: $260,000
After Repair Value (ARV): $429,000

 
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