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.
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.
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.
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 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