Has anyone done business with FlipOS ?

[Jorge Siverio]

I just found out about this company yesterday. This is their website: https://flipos.com/

Upon some initial research, it appears that they are a venture-funded "tech" real estate company. Their value proposition is low HML lending rates (7% and no points) and they agree to purchase your "flip" when the rehab is done (for a pre-determined up-front offer). A friend of mine called them to better understand the process. They sent us a bunch of information, including an in-depth spreadsheet with all of their CMA calculations and how they arrive at their offer price (they did this for a property we were looking at). As long as you rehab the property according to their QC "checklist", they will purchase the property from you at that offer price. By the way, I'm glad to share all the docs they sent (just ping me). Apparently, they recently received $136 million in funding.

I think that they are then, in turn, flipping these rent-ready homes to other investors or institutions (I might be wrong but that's what I'm thinking). Acting as the middleman, with a proprietary framework and system in place, would allow them to push out a lot more volume than if they had to manage the rehabs themselves. So, in my opinion (again, I can be wrong), they are in the business of volume transactions (apparently they are at $21 million in revenue this year).

Is there value in using them versus just managing your own flip? Well. I am just getting started so I don't really know. I would imagine that the value would be low upfront cash required 10% (see some details in the screenshot below) and they fund the rest, and you have a somewhat guaranteed profit margin plus an "apparently" fast turnaround time. It will boil down to maths and probably a simple "T-Chart" to compare FlipOS vs the regular flip (HELOC, cash, HML, portfolio loan, alien money, whatever)....ROI... how much do you need, how long that money will sit for, how much will that money return, and how much risk are you exposed to. I think that can help us compare FlipOS vs the regular flip.

Curious if anyone has done business with FlipOS, also curious to know what people think of this business model (if you haven't done business with them).

Here's their LinkedIn