My first DSCR loan experience was unexpected.

Flipping is not a passive investment…it’s  actively running a business (and often with many unexpected headaches).

When financing a large-scale fix-and-flip project, assessing and managing risk is crucial for success.Risk Management StrategiesContingency Budgeting:Set aside a contingency fund (typically 10-20% of renovation costs) for unexpected expenses.Time Management:Develop a detailed project timeline to keep renovations on track and avoid extended holding costs.Partnerships:Collaborate with experienced contractors and real estate agents to mitigate risks associated with repairs and market positioning.Insurance:Obtain comprehensive insurance coverage, including builder’s risk insurance and general liability insurance, to protect against unforeseen events.Exit Strategy:Always have an exit strategy.

THis is a scenario, its not a deal im working on, people sometimes have accidents or what not and need to get out of debt fast, i know this type of deal exist but i dont know the name for it.

A key takeaway from this project was the importance of budgeting for unexpected renovation costs.

A key takeaway from this project was the importance of budgeting for unexpected renovation costs.

I'm taking a more conservative approach for now as I'm inexperienced and need to be prepared for any unexpected costs, Thank you Nathan:).

This was an accident win.

Risk Management: Securing enough funding to cover unexpected expenses during the renovation is a challenge.

When you talk about liability you can offset that by making sure you have a good Insurance policy and close the loan in an LLC.LLC protects you and your assets from lawsuits and any litigation from any and all accidents/injuries.