All Forum Posts by: Deborah Wodell

I’ve had experience with real estate investing in the past, but now I’m planning to dive into fix & flip projects. Even though I know the numbers well from my previous experience, I’m sure there are some unique challenges when it comes to flips—like managing renovations, timelines, and of course, staying on budget.

For those of you who made the transition or started out flipping, what’s something you wish you knew before your first project? Whether it was a win or a tough learning experience, I’d love to hear your insights on what you’ve learned about flipping that’s different from other types of investments. I’m gearing up for my first deal and want to go in with as much knowledge as possible. Thanks in advance! 

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In today's market, with rising interest rates and fewer good multifamily deals available, focusing on (SFH) might be a smart move to get started. SFHs are often easier to finance, and there's usually more demand, which gives you better comps and exit strategies. Plus, as a beginner, you'll get a feel for managing a deal, working with contractors, and understanding your local market. Once you've got some experience and equity built up, you can more confidently move into multifamily properties when the right one comes along.

That said, if your goal is to scale into multifamily, don't lose sight of that. Be patient for the right deal, but in the meantime, you can build your capital and experience through SFH flips or rentals. The market will shift, and those multifamily opportunities will come—just make sure you're ready when they do.

For a flip, you'll want to get a builder's risk policy, which covers the property during renovations, including any damage from fire, vandalism, or weather while it's vacant. Since your regular agent won’t cover it, you can work with a broker who specializes in investment properties. If you’re considering turning it into a rental, once the renovation is done, you can switch to a landlord insurance policy that covers both the property and any liability related to tenants. Just make sure the builder’s risk policy is in place while the property is vacant and under construction to protect your investment.

If you're hesitant to dip into savings, hard money can help without draining your personal funds. Just make sure you have enough reserves for unexpected costs—rehab always ends up pricier than planned, and you don’t want to run out of cash mid-project. Be prepared for things like carrying costs, permits, and any surprise repairs that come up. It’s all about balancing the funding so you’re not caught off guard when costs inevitably rise.

Hard money lenders are often a good option because they’re specifically geared toward short-term investments like flips. As you get more experienced and build relationships with lenders, you'll likely be able to secure better terms. The first few deals are about learning the process and getting comfortable with the risk, so make sure the numbers work before you move forward. This will help you avoid any surprises that could drain more of your equity or savings than you intended.

Thank you guys so much for your insights! Will definitely keep everything in mind. 

Hey everyone,

After some time focusing on other areas, I’m getting ready to hop back into flipping. I’d love to hear from those who are actively flipping right now—what’s changed? Any shifts in buyer demand, renovation costs, or financing that I should keep an eye on?

Also, what’s working for you these days to stay ahead of the game? Excited to hear your thoughts and tips!

Thanks in advance!

Hi fellow investors,

I've been hearing a lot about DSCR (Debt Service Coverage Ratio) loans lately, especially in the context of long-term buy-and-hold investments. For those of you who've used DSCR loans, I'd love to hear your experiences! Here are a few specific questions I'm curious about:

1. How does the approval process differ from traditional loans? Was it easier to qualify based on the property’s cash flow?
2. What kind of terms have you been able to secure? Are interest rates and loan-to-value (LTV) ratios competitive compared to conventional financing?
3. Have you noticed any challenges or downsides? For example, are lenders stricter about DSCR ratios, or do they require higher reserves?
4. How has using DSCR loans impacted your overall cash flow and ability to scale? Did they allow you to grow your portfolio faster than traditional financing would?

I'm thinking about recommending DSCR loans to some of my clients who are buy-and-hold investors, but I want to make sure I've got the full picture. Would love to hear your insights, tips, or any lender recommendations you've had success with!

Looking forward to learning more from your experiences!

Quote from @Aaron Gordy:

Its simple. Its when I can get a higher rate of return elsewhere risk adjusted. Its a math game that is a based upon your own situation. One can calculate the expected roi based upon cash flows and appreciation and that is fairly easy to calculate. It gets a little more complicated when one factors in income taxes.  Real estate has the 1031 exchange gift and the many write offs that makes it preferable for many people. Its really a math game. 

Absolutely, it really does come down to the numbers. Comparing potential returns and factoring in tax benefits definitely adds a valuable dimension to the decision-making process. it's a great reminder that keeping things grounded in math and personal situation is important.

Quote from @Adam Michael Andrews:

Your returns in investing ultimately come from exchanging terminally abundant goods (fiat dollars, debt/future fiat dollars) for terminally scarce goods (high quality, supply constrained real estate).

Selling to go into cash isn’t of interest unless I have a short term need for that cash or am funding another purchase. In order for that purchase to make sense, I must believe that I am getting a better deal than I have now. I don’t try to time the market because I have seen the M2 money supply chart and understand the government will always print money.

That’s a solid perspective, and I completely agree with the concept of swapping fiat for something truly scarce like prime real estate. I also like how you’re thinking about selling only when it leads to something better—it’s not just about timing the market but ensuring the next deal is truly a step up. Thanks for sharing this, it's definitely given me some good food for though.