“Good Thesis” for Single Hard Money Loan: Borrower: Experience with multiple flips in target marketBut… doesn’t have more than a handful of flips going on at any one timeFlip is next logical progression:Example: Flipper used to doing SFH in a given market for past several years is doing a slightly larger project, or scaling to do two simultaneously.Example: Flipper used to doing SFH in a given market is not progressing from small fix and flips to a $2M luxury quadplex ground-up development in one jump.Flipping is the borrower’s full-time jobOr, their single side project in an otherwise established careerFlipper does not have 10 other projects going onBorrower has established contractor networkBonus: Has established contractor skillset and licenseBonus: Has deep experience personally remodeling flipsBorrower personally guarantees loan:Has material assets and net worthIs not highly leveragedHas a cash flow positive lifestyleDeal: Close, clear comps support both acquisition and disposition priceProject timeline and rehab plan is detailed and specificBorrower is willing to loan disbursements staged upon completion of clear project milestonesBorrower has procured binding quotes from contractors regarding scope of flipLoan is no higher than 80% loan-to-cost, and 70-75% of Loan-to-ARVBorrower is putting some skin in the game:Borrower’s equity is not just them buying the property at a discountBorrower is committing at least 10% (preferably 20%) of project cost in cash from their own personal accumulationTimeline is as tight as possible:Cosmetic Flip is less than 3-5 monthsMajor Rehab is less than 1 yearScrape and Rebuild is less than 18 monthsLonger timelines = more conservative Debt to Equity

They typically have the most skin in the game, so they want to make sure there is value there for their loan.  

The purchase could use HML, but HML lender will want you to have skin in the deal (so they will not provide 100% financing).

REI requiring skin in the game or creative sacrifices. 

They have more skin in the game then you do.Make sure you get clear title.

Most lenders want the investor to "have some skin in the game" so you won't be tempted to just walk out the door as soon as things get a little tough.If you qualify, you can get a cashier's check for Umpty-Ump thousands of dollars. 

Most SIMPLE thing in the world.One certainly needs thick skin and let no compassion or emotion come into land-lording..

-Sexist remarks (will refer to either old 'male' owner or would prefer to speak to my dad who helps on occasion)The last few straws were when I purchased a new fridge he requested and even with advanced delivery notice- refused to let the delivery men in because of their skin color. 

The tenants recognize it is critical to have a good relationship with the LL as anything but glowing LL recommendations will have difficulty finding a place to rent.  

Current landlord often gives glowing reviews so they can get them out of their place into another place.