What you're really buying.
Most new investors think the purchase price is what they're paying. The lender sees a bigger number. Let's find yours.
Your credit score doesn't just affect your rate — it directly reduces how much a lender will loan you. At 680 you lose 2.5% leverage. At 620 you lose 10%. Some programs go below 600, but expect reduced leverage and higher pricing. Every point matters, so pull your middle score before you write an offer.
The rehab truth.
Check the scope honestly. These are median costs pulled from actual funded deals — not HGTV fantasy numbers.
Certain lending programs may cap financeable contingency at 10% of your rehab budget. Final requirements depend on the selected lender and loan program. On a first flip, you want every penny of it. I see more deals blow up from underestimated contingency than from bad comps. If you think you need more than 10%, your rehab scope probably needs to be rebuilt from scratch. This slider is the difference between profit and panic.
The money nobody tells you about.
YouTube flippers show you ARV minus rehab and call it profit. Here's what they skip — every dollar, from a lender's perspective.
First-timers always say "I'll be out in 4 months." Data from every first flip I've funded says 6–8 months is reality. Permits, contractor delays, listing time, inspection repairs. Budget 6. Hope for 4. Survive 8.
The exit math.
Your ARV is not your profit. What you keep after selling costs is your profit. This is where deals live or die.
Pull three sold comps from the last 90 days, within a half-mile, same bed/bath and square footage. If you have to stretch to find comps, your ARV is wrong. A 5% ARV mistake at the top of the funnel is a 30% profit mistake at the bottom.
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