Flip Funding LLC: Hard Money Lender Review (2024)

As short-term, asset-based loans with a rapid application and approval process, hard money loans offer swift access to funding, especially if time is of the essence in securing your potential investment property. Private lenders typically underwrite these loans, and we’ll take a close look at one: Flip Funding LLC.

We’ll tell you who they are, the loan products they offer, the benefits and drawbacks of securing loans from them, and how they fare against their competition to help you do due diligence before choosing them as the lender for your next project.

• What Is Flip Funding?
• Flip Funding Loan Pricing Review
• Flip Funding Broker Partner Program
  
• How To Get A Flip Funding Loan
• Flip Funding Loan Benefits
• Flip Funding Loan Drawbacks
• Flip Funding vs. Other Hard Money Lenders
• Final Thoughts: Is Flip Funding Worth It?

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What Is Flip Funding?

Flip Funding LLC is a private, asset-based lender that specializes in providing capital to real estate investors engaged in commercial and investment properties. 

Rod, a seasoned house flipper since 2008, established Flip Funding following his mistakes and cash flow struggles.Rod’s mission with Flip Funding is clear—to spare investors the pain and frustrations he encountered along his investment journey. To date, the company has successfully funded over $500 million in various real estate deals.

Specializing primarily in hard money loans, Flip Funding offers a diverse range, including fix and flip, new construction, and bridge loans. Positioned as a short-term lender, the company extends loan terms of up to 360 months, featuring interest rates ranging from 6% to 9%, contingent on the loan amount.

With loan amounts spanning $75,000 to a substantial $10 million, Flip Funding emerges as a reliable and versatile option for a wide spectrum of real estate investors seeking crucial funding.

Read Also: 9 Best Hard Money Lenders For Beginners & First-Time Investors

Flip Funding Loan Pricing Review

As noted, Flip Funding solely offers commercial real estate and investment property loans. While traditional mortgage lenders usually offer limited loan options, Flip Funding provides several short-term loans as well as long-term options, ensuring different real estate investors can find plans that suit their specific needs.

Flip Funding’s loan options include fix and flip, bridge loans, DSCR rental loans, new construction, multi-family (mixed use), and commercial loans. Check out this table for the rate, loan terms, and repayment term details of each loan plan they offer.

Note: Flip Funding sets the bar for borrower eligibility at a credit score of 600 and above, a requirement applicable across all its loan plans.

Despite this credit threshold, the lender showcases its generosity through competitive loan-to-value ratios. For new investment properties, borrowers enjoy ratios ranging between 80% and 85%, while in the context of after-repair-value (ARV), Flip Funding offers a ratio of up to 70%.

Earn With The Flip Funding Broker Partner Program

Besides getting loans, you can earn with Flip Funding. The lender runs the Flip Funding broker Partner Program designed to empower professionals to boost their income through referrals. It is exclusively meant for real estate and finance professionals dedicated to making things happen.

If you have a proven track record of success in real estate or enjoying financial gains in the real estate and finance industries, this program is for you.

Although the lender expects partners to actively promote loan products and bring in as much traffic as they can, the best part is that Flip Funding closes on loans other lenders normally wouldn't, meaning more money earned on your part.

Additionally, the company offers quite a generous commission. Partners get 3% of the total loan amount for each successful referral, meaning the more borrowers you bring in and the higher the amount they secure, the more you earn.

Moreover, the lender sets its broker partners for success by doing all the marketing legwork. They create ads, market on social media, and even equip partners with promotional materials to facilitate seamless conversions. Beyond the earning opportunities, the Flip Funding Broker Partner Program offers the average investor networking opportunities with some of the most coveted individuals in the industry.

How To Get A Flip Funding Loan

Flip Funding has a dedicated application form on its website. Fill out the form highlighting your professional background and commitment to actively promoting the lender’s loan products.

Unlike many lenders who accept broker partners with no second thought, Flip Funding prioritizes quality over quantity. Your application undergoes a meticulous evaluation process by a team of real professionals who assess your dedication to marketing the lender’s products. Due to this comprehensive evaluation, the approval process may take some time.

Read Also: Real Estate Financing: The 6 Best Funding Options For Investors

Flip Funding Loan Benefits

Here are some of the benefits of securing a hard money loan from Flip Funding:

• Fast close times: Hard money lenders typically offer fast loan processing, but Flip Funding sets the bar even higher. According to the information they’ve provided on their website, this lender processes and closes on loans as fast as ten days. This quick turnaround time means that investors can quickly access the capital they need to finance an investment strategy that crops up when least expected.
• No prepayment penalty: Flip Funding doesn’t charge a pre-payment penalty for some of its loan products, such as new construction loans. That means an investor can quickly access the funds they need to finance their projects and pay off the loan as soon as the profits roll in. This leads to interest savings, a lower debt-to-equity ratio, and borrowing flexibility. Early repayment without a pre-payment penalty also results in increased cash flow for the investor, providing more financial flexibility to pursue other real estate investment opportunities and expenses.
• Decent loan amounts and diverse loan types: This lender offers minimum investment loans of $75,000 and a maximum of $10 million that can be tailored to suit specific investment needs. That makes them an ideal option for both small-scale and large-scale investors, as well as suitable for a wide range of investing needs. Additionally, they offer diverse loan types, ranging from fixed and flip bridge loans to commercial loans. As a result, whether you’re a wholesaler who just needs a top-up to finance your investment property or a rental property investor looking to fund a large-scale construction project, they have a plan to fit you and enough funds to finance your project.
• Reasonable loan rates: Flip Funding charges interest rates between 7.5% and 9.99%. For some loan plans, for instance, commercial loans, a 7.5% interest rate is reasonable and almost similar to what conventional commercial loan lenders offer. Generally, the lender’s rates are within the industry standard and lower than what most private lenders charge.
• Generous loan-to-value ratio: Flip Funding offers some of the most generous loan-to-value ratios around. The company offers between 80% and 85% LTV on investment purchases and from 70% to 75% on after-repair value for most of its loan products. These generous ratios allow investors to not only leverage their capital more effectively but also preserve it for unforeseen expenses, renovations, and additional investment opportunities. A high LTV ratio also creates the potential for higher appreciation and, ultimately, increased ROI.
• Nationwide access: Except for Arizona, South Dakota, North Dakota, Nevada, Oregon, and Vermont, Flip Funding offers real estate loans countrywide.

Flip Funding Loan Drawbacks

While Flip Funding does offer some impressive perks, the lender isn’t all perfect. Here are some drawbacks to anticipate if you intend to take out a hard money loan from them:

• Limited Flip Funding LLC reviews: We like to check out customer reviews while compiling our article guides for investors because they’re the best way to evaluate the quality and efficiency of any lender. They highlight the efficiency of a lender’s application and loan approval process, fee transparency, and how well they address and resolve issues. Client reviews also enable you to set realistic expectations when you approach a lender. Unfortunately, Flip Funding has pretty limited reviews on their Facebook profile. On the bright side, they were all positive.
• Down payment: It’s important to note that Flip Funding calls for a 10% to 20% down payment. While this is normal due to the risky nature of hard money loans, it may prove a barrier to capital if you’re a first-time investor strapped for cash but need to finance a viable investment opportunity.
• Locks some investors out: Although Flip Funding operates nationwide, it excludes some states. Consequently, if you’re an investor in these states, you cannot enjoy funding from their loan programs.

Flip Funding vs. Other Hard Money Lenders

Flip Funding is one of the most popular hard money lenders around, but not the only one. We researched other lenders and compiled a table to help you seamlessly compare how Flip Funding LLC fares against the competition:

From our table above, although lenders like Ground Floor and Kiva offer lower rates, Flip Funding offers relatively reasonable interest rates. 

Flip Funding allows loan amounts of up to $10 million. This is a pretty extensive loan amount for a national lender, considering lenders with a global reach like Kiva limit their loans to $3 million. However, Flip Funding requires a 10-20% down payment, while a lender like Residential Capital Partners offers no-money-down, 100% financed loans freeing up an investor’s funds for other purposes.

In a nutshell, Flip Funding might have relatively higher interest rates for some of its loan plans, but it’s ultimately one of the best hard money lenders around. They have a proven track record, having funded over $500,000 worth of deals since their inception in 2015, meaning you don’t have to worry about their legitimacy.

Final Thoughts: Is Flip Funding Worth It?

After comprehensive research and analysis, Flip Funding appears to be a solid choice for real estate investors seeking hard money loans. The California-based private lender offers fast loan processing and closing times, completing deals in as little as seven to ten days.

They don’t charge prepayment penalties for certain products, which allows investors the flexibility to pay off loans early, leading to reduced interest payments and increased cash flow.

Flip Funding offers a range of loan products, some worth up to $10 million, thus making them suitable for various real estate investment needs. What’s more, the lender offers loan-to-value ratios ranging from 80% to 85%, which allows investors to leverage or preserve capital for new opportunities effectively.

On the flip side, they have limited flip funding LLC reviews, which left us with questions about their efficiency. Additionally, while they claim to operate nationally, the lender excludes its services from certain states, limiting capital accessibility for investors in dire need of financing in these regions.

That said, depending on your individual investment needs and preferences, Flip Funding could be a valuable financing partner for your various projects.

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*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.