All Forum Posts by: Deborah Wodell

Recently, I’ve been seeing more and more posts from investors saying their lenders backed out—sometimes just days before closing. It’s happening more often nowadays, especially with fix & flips and other investment deals.

It’s tough to watch good deals fall apart after all the work that goes into finding and locking them up.

Have you had a deal fall through because the funding didn’t come through in time?

• What did you do?

• Do you have backup lenders lined up, or a plan B?

• Have you shifted toward DSCR, creative financing, or private money to avoid the risk?

Would love to hear how you’ve been handling this lately—your insight could help a lot of people here!

Great initiative diving into foreclosure auctions, Terrence. You’re absolutely right—those spreads look amazing on paper, but auction deals come with big caveats: access, liens, unknown repairs, and needing cash or fast capital. Lenders typically won’t fund these because they require an appraisal and clear title, both of which are unavailable pre-auction.

That said, if you’re serious about flips and have a solid local team, I’d suggest looking into off-market deals or distressed listings where lenders can come in with 90% purchase and 100% rehab.

Happy to share more if you’re looking at other deals that might qualify!

You're in a tough but not impossible spot. I'd personally push to finish the project and get it listed ASAP—even if you exit at a slight loss, you're at least preserving capital and sanity. Waiting until 2026 or pivoting to STR/MTR adds risk and complexity, especially with Atlanta's changing regulations and the fact that you're remote. If a local agent or investor can help get a reliable contractor on it quickly, that's worth exploring now. At this stage, time is your biggest enemy—wrapping it up and pricing it competitively may be the cleanest way out.

Hey Sandra, sounds like you've added a lot of value—nice work! Since the property is rented, a DSCR loan could be a solid option to consider. You could potentially pay off the HELOC with long-term fixed financing as long as the rental income supports the debt service ratio lenders look for (typically 1.0–1.25+).

That said, if your priority is keeping the monthly payments roughly the same as the HELOC, you'll want to compare the numbers closely. DSCR loans usually come with interest-only options, and depending on the rate and term, they might give you more breathing room.

A cash-out refi could also work, especially if the property appraises well after the remodel—but it might come with a higher rate or tighter LTV limits than the HELOC, depending on the lender and your credit/income profile.

And you're right: if you sell, the tax bill could be painful with the appreciation and any depreciation recapture. If you're leaning toward holding the property, it might be worth looking at a DSCR or even a HELOC refinance (some lenders offer longer-term HELOCs or fixed-rate seconds) as a way to stabilize cash flow without triggering taxes.

Happy to chat if you'd like to compare a few real-world numbers side by side!

Great discussion here—so many smart perspectives. I agree with those pointing out this really comes down to where you'd deploy the capital and whether you can confidently beat the cost of that money after factoring in the opportunity cost of losing your 3.625% rate.

I also think a possible middle ground could be refinancing but not up to the full 90% LTV. Maybe there's a sweet spot that gives you some capital to redeploy while keeping monthly payments manageable and preserving some of your existing cash flow.

If the new 5% loan is 30-year fixed, that does give you long-term predictability—but like Don and Adam said, you're essentially exchanging cheap capital (your current loan) for moderately priced capital, so your hurdle rate is higher than it looks on the surface. This is where a second mortgage or HELOC might be worth comparing side by side.

Either way, it’s a strong position to be in—just depends how aggressive you want to be with leverage right now.

Thanks for being so transparent—this is a common hurdle, and it’s good you’re approaching it with realism. One thing I’d suggest is starting small. Look for lower-priced properties where your total purchase and rehab costs stay under 70% of the ARV. That keeps you safer and makes it easier to attract funding, even if you’re working with limited capital.

Also, while building that first chunk of capital, consider things like wholesaling, JV partnerships, or even finding someone to gap fund your deal in exchange for a return or profit split. The key is finding a deal that works by the numbers—if the deal is solid and conservative, the funding becomes easier to find.

Stick with it. Many successful investors started exactly where you are now. You're doing the right things by learning and asking questions. Keep going!

Hey Jacob! Received your email. Send you a response! Would love to work on this with you. 

There are tons of good ones depending of the specifics. We can run some numbers for you to check and compare to.

Hi Damon,

Congrats on starting your first fix & flip! For your LLC structure, many investors use an LLC for each flip to separate liability and keep things clean financially. Having clear operating agreements with your partners is key to avoid any future headaches.

Since you're using hard money plus your own funds, make sure your lender is clear on who's on the LLC and how funds flow. For tax savings, consulting a real estate CPA can really help optimize your setup.

I wouldn’t recommend paying 50% upfront. It’s better to pay in segments tied to completed work milestones to reduce risk and keep the GC accountable.

Clear contracts and inspections before each payment are key.