Because we are unlike any other capital partner to fix and flip investors—and we are better. How?
How Does the Typical Lenders Work?
You know the drill. Whether you make a profit on the project or not, your typical hard money lender doesn’t care. They take their points up front — monthly interest, perhaps amortization payments and recoup their principal at the time of sale. They are not interested in your success, really! After your deal is funded, they are on to the next opportunity in their pipeline.
Right Place’s Consultative Advantage
How would you like to have a capital partner who is there with you at every step, and whose financial interest are directly aligned with yours? While we can also do “points and interests” deals when that makes sense, more often than not we enter into share profits structures with our fix and flip ground partners. That means our financial interests are completely aligned with yours. And with the power tandem of our network and experience, this means that we can help you become even more profitable.
While we are consultative by design, we don’t take over your deals. It is your deal, and you call the shots. However, we can help. How? Since with our funding partners we did over 1,500 deals last year, there are few problems we have not seen. It boils down to avoiding the three “loss traps” in flipping. Whether you have done a handful of deals or thousands, you already knows these are the three pitfalls to profitability:
Right Place’s Consultative Advantage
Overestimating After Repair Value (ARV)Overestimating the final property value after rehab can be devastating to profitability.
Underestimating Construction CostsBeing over budget on rehab/construction kills your profits. Period! Don’t settle for the cheapest contractor.He will cost more over the long run.
Underestimating completion & market timeEvery day the property remains on the market costs money! Don’t let realtors sell you a bill of goods. It you are a pro, you can market you property better than anyone else.
We have strategies that may help you with these loss traps. Whether it is working with you to establish a realistic ARV, helping you with strategies to vet your contractor and construction budget or working with you to make sure your properties are priced right and marketed effectively so that they sell quickly (and when they don’t, nudging you is to make price adjustments to clear the inventory), we can share our experience of what works—and what doesn’t. We see a lot of deals, and since our interest are completely aligned with yours, we have every incentive to remain actively engaged in each deal we fund from acquisition close to sale close.
The cost to you for our advisory services is zero. What is in in for us? Well, the more successful you are, the greater success we will achieve. Because we align our interest with yours, you can take comfort that we are in the deals with you.
Right Place’s Funding Advantage
At Right Place Capital Partners, frankly we don’t work with everyone. We work with the “fewer, better” flippers in a market who have demonstrably superior results, consistent deal flow and predictable capital needs. In return for be a reliable and consistent source of capital from us, we want our preferred ground partners to make us their preferred capital partner, private lender or hard money guy—whatever you call it. We require our flippers to give us the “first look” at their deals. These deeper relationship with our “fewer, betters” allows us to be even more consultative because we are only focusing on a few businesses in our markets, allowing us to delve more deeply into mutually beneficial consultative relationships.
When we say yes to a deal, you can be assured that the capital will be there at the acquisition closing after committing to a deal, we have never left a flipper without funds at the closing. Equally importantly, we fund construction draws promptly. When you find a great contractor, of course you want to treat him like the gold that he is! For contractors, that means prompt payment because most contractors have liquidity challenges. When they satisfy a construction milestone, they want to be paid—quickly—so that they can pay their vendors, subcontractors and tradesmen. When we are your funding partner, your contractors will be amazed with our quick payment effected through ACH transfers, and this will move you to the top of their preferred client list—so you can do more deals, faster and with fewer, better contractors. It is not uncommon for construction milestone payments from Right Place to hit a contractor’s account in three days.
Finally, our preferred ground partners who keep capital deployed consistently and deliver projects on time and on budget will have all the capital they need to fund their deals. To be successful, a flipper needs three things: Good deal flow, great project management and quick access to capital. We can solve the capital piece, and by keeping your contractor happy with fast milestone payments, we can go a long way to helping you maintain a great relationship with your contractor/project manager. That leaves you free to focus on deal flow, and we can help in that process too!
Right Place’s Focus Advantage
Our focus is primarily on Louisiana fix and flippers. If you are doing rehabs in Louisiana and are good at what you do, we need to partner up. Right Place Capital Partners is, beyond measure, the most professional, reliable and consistent private lender in Louisiana. Unlike many national hard money lenders who avoid Louisiana-based flippers for legal and regulatory reasons, we understand the markets here and we like them. This is where we want to deploy our capital so Louisiana based real estate investors can obtain the funding they need quickly to close their deals fast and grow their businesses large.
Unlike other hard money lenders, we don’t load you up with junk fees either. All fees and deal terms are set out in a term sheet at the start.
The bottom line is this. We are engineered to assist Louisiana-based flippers build highly profitable flipping businesses, we enjoy providing our preferred ground partners with the benefit of our experience and network so they can succeed, and we invest our capital and time with the best of them. If you want to work with Louisiana’s premier private lender, then submit your deal here, we will get back to you promptly and you can decide is Right Place is the right capital partner for you.