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Experience

The Value of Experience

Having prior experience is often a prerequisite for flippers since the lender is betting that the borrower knows what they’re doing when it comes to repairs and remodeling.

The Value of Experience

Having prior experience is often a prerequisite for flippers since the lender is betting that the borrower knows what they’re doing when it comes to repairs and remodeling. Some lenders won’t lend to inexperienced flippers. Others, including Velocity, limit the loan-to-value ratio for flippers who don’t have an established track record.

Less experienced flippers will often tap into the home equity of their personal residence to fund their first investments. However, the practice can be risky since a loss from the investment could, in turn, result in the loss of the borrower’s personal residence.

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