Noah Furey (pictured above) of Insignia Capital told Mortgage Professional America that brokers in the fix-and-flip industry should make finding a lender with a proven track record a priority. “I think in any business, but especially the lending business, it's important to partner with someone who has experience,” he said.
“So go to a lender that will work with you and teach you what it takes to be an effective broker and serve your clients.”
Detailed up-front information is a key consideration for brokers and clients
As a general rule of thumb, presenting as comprehensive a summary as possible of the borrower’s circumstances, goals and financial situation is always a recommended step for a broker, and this applies in the fix-and-flip sector as well.
Furey said being clearly informed up front increases the chances of the lending process going smoothly for clients from start to finish: “For mortgage brokers, the more information you can give us, the bigger picture of the borrower, what they're trying to accomplish, what their experience is, their credit, what their capital is, the more information we have, the better job we can do in sizing the deal, leading it to success and closing the deal.”
Furey said that while transaction volume in this sector may have slowed since interest rates began rising in 2022, the market remains “robust” and professionals working in the sector are still able to find good deals.