All Forum Posts by: Jorge Siverio

I just found out about this company yesterday. This is their website: https://flipos.com/

Upon some initial research, it appears that they are a venture-funded "tech" real estate company. Their value proposition is low HML lending rates (7% and no points) and they agree to purchase your "flip" when the rehab is done (for a pre-determined up-front offer). A friend of mine called them to better understand the process. They sent us a bunch of information, including an in-depth spreadsheet with all of their CMA calculations and how they arrive at their offer price (they did this for a property we were looking at). As long as you rehab the property according to their QC "checklist", they will purchase the property from you at that offer price. By the way, I'm glad to share all the docs they sent (just ping me). Apparently, they recently received $136 million in funding.

I think that they are then, in turn, flipping these rent-ready homes to other investors or institutions (I might be wrong but that's what I'm thinking). Acting as the middleman, with a proprietary framework and system in place, would allow them to push out a lot more volume than if they had to manage the rehabs themselves. So, in my opinion (again, I can be wrong), they are in the business of volume transactions (apparently they are at $21 million in revenue this year).

Is there value in using them versus just managing your own flip? Well. I am just getting started so I don't really know. I would imagine that the value would be low upfront cash required 10% (see some details in the screenshot below) and they fund the rest, and you have a somewhat guaranteed profit margin plus an "apparently" fast turnaround time. It will boil down to maths and probably a simple "T-Chart" to compare FlipOS vs the regular flip (HELOC, cash, HML, portfolio loan, alien money, whatever)....ROI... how much do you need, how long that money will sit for, how much will that money return, and how much risk are you exposed to. I think that can help us compare FlipOS vs the regular flip.

Curious if anyone has done business with FlipOS, also curious to know what people think of this business model (if you haven't done business with them).

Here's their LinkedIn

I just contacted Lower.com today and got pre-approved with a 770 credit score. Then they proceeded to mention that they would not do the HELOC without taking possession of the first mortgage on the property. So their proposal was that I refinance at the same interest rate. This was laughable at the least. Why would I refinance and pay around $15k in costs just so that I can get a HELOC with them. My loan officer was very helpful and knowledgeable, but this is just not what I was looking for.

Talking with Quorum FCU tomorrow, who does not require that you refinance with them. 

This is interesting and it makes sense. I'm trying to find that "long-term" lender, but it looks like I'll probably want to do the transaction through an LLC and then find a commercial loan. Is this how you all scale?

I was talking to GTE Financial about a personal cash-out refi and they said their requirements are 1 year of tax returns... or 2 years if they feel it's too risky. I guess they are adding in more stringent requirements on top of the Fannie guidelines (which state that an executed lease contract should be enough - or so that's what I understand).

@Jabari Long I like the "begin with the end in mind" strategy. Looks like I have some homework to do!

Timothy - appreciate the insight.

Owen and Tanner you have helped catapult my knowledge 10x. I really appreciate your proactivness and willingness to help a newbie. Thank you!

Greetings BP Community!

I am an aspiring Real Estate Investor and searching for my first deal. The forums have been extremely helpful so far in helping me get started on my research. However, I still have some outstanding questions that I was looking for some help on.

I would like to implement the BRRRR strategy to buy, rehab and hold. I am thinking of funding my first deal with a HELOC for the down payment and then private or hard money for the purchase price and rehab.

1. I talked to Lending One today and they said that I needed to form an LLC or private money lenders would not lend me any funds. Was this statement true? ...or do some private money and hard money lenders lend out to individuals and not LLCs

2. If I do use an LLC, would I be able to refinance after the 6 month seasoning period with a conventional cash out refinance, or do LLCs not qualify for these?

3. If I have to use a an LLC, and I then proceed to refinance with a private lender, what type of qualifications would they need. Assuming this is a new LLC and I go to refinance in 6-7 months... would they need to see a specific amount of income. Any resources you all can point me to would be appreciated.

Many thanks - JS