Jul '25 • General discussion
Bought a flip, put $50K in rehab, and it won’t move
I had a borrower last week come to me with this situation
The market seems fine but he just isn’t getting the traction he needs to sell his flip
And he’s burning a hole in his wallet paying Hard Money Lending fees every month
His alternative? A refinance
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THIS IS WHAT HE DIDN’T KNOW
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🚨 If a property is listed on the market or was listed in the last 6 months, a DSCR lender will have to use the lowest list price rather than appraised value. 🚨
What does this mean?
➡️ If you dropped the price of your property THAT is the value the loan will be based on
For example:
👉 Your estimated value of your newly renovated flip + initial list price: $500,000
👉Your current list price (after a price drop): $425,000
👉Loan to Value (LTV): 75%
👉Your Desired Refinanced Loan Amount: $375,000
👉Your Actual Refinanced Loan Amount: $318,750
That is a $57,000 difference!
That’s money that could have gone to paying your lenders or cashing out to buy another property.
Be effective with your refinances!
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Bought a flip, put $50K in rehab, and it won’t move
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