New Investor- Fix and Flip Loan in Brooklyn, NY
We recently funded a fix and flip deal from a "new investor." In the fix and flip lending world, a new investor is someone that has not completed (bought or sold) a deal in the last 36 months. Now this definition can be a bit frustrating at times for borrowers. We constantly get calls from borrowers that say, "I've flipped 30 homes, but nothing in the past few years because of the pandemic," or we get someone that says "I've built 20 ground up homes in the past for clients, but I wasn’t on title for any of them." And then we have to gently explain to the borrower that they're considered a "new investor" because they don’t have any recent deals in their name, and we have to lower our loan amounts. It's a hard conversion to have, because most of the time, we know that this borrower is very capable, but we just can't get them the best rates or leverage because they just don't meet the "experience investor" def