All Forum Posts by: David Sotomayor

Has anyone heard of a lender that does true asset-based lending for fix-and-flip deals, where they lend strictly based on ARV (After-Repair Value) instead of the purchase price? I was told there are lenders that fund up to 70% of ARV, which would cover 100% of the purchase and leave some room for rehab, with no credit check, no income verification, and no additional collateral required—just the deal itself. I’m a contractor in Sarasota, FL, and while I’m a first-time investor, I’ve worked directly with flippers, running numbers, structuring deals, and managing rehabs. Rehab costs aren’t a concern since I have a full crew and can minimize expenses. I just need the right lender that structures financing this way. If anyone knows about this type of loan structure or can point me in the right direction, I’d really appreciate it.

@Adam Weinstock i just sent you a private message 

Im getting into fix and flip real estate and working with a private lender who requires a higher credit score than mine to qualify. I have a cosigner willing to help, but Im unsure whether they must be in my LLC or can just be a guarantor, has anyone dealt with this before?

If the cosigner is not contributing funds but is just helping secure the loan, whats a fair way to compensate them? Should it be a percentage of net profits, a fixed fee, or another structure? Also, would this loan help build my personal credit, or would it only report to business credit bureaus under my LLC? I'd love to hear from anyone who has done this before, how did you structure it, and what worked best for both parties? Thanks in advance!