All Forum Posts by: Aaliyah Carter

Hi Hyeseong,

There are some lenders who offer something called advanced draws. The difference is that instead of you paying for draws upfront and being reimbursed once the work is complete, with advanced draws the lender will advance your rehab funds for each stage of your scope of work.

We then inspect the work to advance funds for your next stage, and so on. That way, you are always using the lender’s money and not your own. This feature is a benefit you would have to qualify for, but if you have enough experience to get approved for it, it can make a huge difference! ;)

Hi Nathan, 

No, that is very uncommon. Most lenders can provide a pre approval letter with no upfront fees.

Hi there, 

As a former insurance professional, you absolutely need a landlord or rental property policy for your investment property. A "home owners policy" is specifically for you as a home owner (primary or secondary residence, NOT rental properties). I would also strongly suggest that your tenants have a renters insurance to cover their belongings. There is a highly likelihood your claim could be denied, if the property is not properly insured (leaving you with the financial responsibility and at risk for a possible lawsuit). Rental property insurance will protect you and renters insurance will cover your tenants. You can check out consumer reports for the best, affordable and reliable insurance companies. Happy Hunting! 

Hi Maria! 

I understand feeling overwhelmed with a new pursuit, but as you learn those overwhelming feelings will disappear. Real estate investing is a new muscle you simply have to grow! Some real investors invest for capital gains and some invest for income. When you think about your long term investing goals, what would you like to accomplish? 

Let's connect and we can talk further!

Hopes this helps ;) 

This is a great gem of information to consider! 

Hi Dillon,

Start by researching lenders and find out what the criteria for lending is. What’s required of you? Consider things like experience, FICO, liquidity for cash to close. Create action steps to achieve these goals.

Additionally, what type of service or experience would be most helpful to you with the lender, contractors, or business partners you work with? Essentially, interview and vet the lender, contractors, or business partners.

Once you know what the lending criteria are, then you can goal set and make sure that you find properties that are acceptable for lending and be in the best position for a successful flip.

Then proceed to research properties, contractors, business partners if desired, best locations to flip a property in. Hope this helps you with your pursuits!

Interesting, how does one avoid an appraisal that’s “too good”? What can I do as an investor, to vet the appraiser or appraisal company?

Empowered is exactly how I feel after reading this informative post! I appreciate the insight on what can drive a low property value and more importantly what I can do about it.  At what stage in the process, is the appraisal ordered for the subject property? How does a low property value effect financing terms & conditions?