When do You know you have a good fix and flip deal

[Louis Jeffries]

I am a hard money lender. I have many clients come to me with poor or marginal projects seeking financing. Some deals I reject as I try to explain that the deal does not make financial sense. Many of these investors say they have mentors yet do not understand what a good deal is. So my question is not for my understanding but more for the new investors. When do you know you have a good fix and flip deal?

[Bonnie Low]

I would ask them to bring you a line item of their construction estimate plus a comp from a Realtor for the ARV. Make them do their homework and prove to you that the numbers work. I've even had a banker ask for a construction quote from a GC. Of course, it helps if you have the frame of reference to know whether or not their numbers are legit, but sometimes forcing them to put it on paper ends up proving to them whether or not the deal is a good deal.