Fixing and Flipping
Joe S. had always had a keen eye as an entrepreneur and had done well targeting niche markets for fixing and flipping properties during the real estate boom. But when the Great Recession hit, competition increased in his market segment. Margins became slimmer and profits harder to come by because of higher lender fees, high interests rates, and banks less willing to lend money.
While others were hurt in this new environment, Joe found a way to take advantage of it and create greater opportunities for himself with a new funding platform for the acquisition of property and construction work that needed to be done with a customized investor relationship line of credit with Lendacy.
With no bank involvement, lender fees eliminated, interest rates well below market rates, and a flexible payment schedule that allowed him to defer payment until work was complete and the property sold, he was able, with this new approach to financing, to make more money on projects than ever before. Projects his competition was not even able to bid on.
Knowing that the costs of capital were substantially reduced, Joe was able to outbid his competitors for properties and sell them for less, while still making a healthy profit thanks to the savings his Lendacy line of credit provided.
He also had the satisfaction of providing housing for people who might otherwise not be able to afford it.