for same-day approval, and fast closing funding—as soon as five to 10 business days. Andrew discussed his experience using the unique RFG 100% short-term loan as the first step in his buy-and-hold efforts. He said, “The RFG 100% fix-and- flip loan program has been huge for me. It’s allowed me to get into properties at a minimal out-of-pocket cost and get that initial purchase and rehab work done to turn it in and refinance. The service I receive is excellent. Whenever I reach out, they respond quickly, even through the draw process.”
Andrew targets an area first, then looks for property “buy box” or characteristics. Then he looks at the numbers, particularly the upfront buy. He said, “If you buy the right places at the right price, everything else will work out.” Also focusing on property rentals, Anitha is first looking at property affordability. “We always try to stick to less than $100,000, preferably lower. We have a mantra of three beds and one bath, a single-family home, and a minimum square footage of 1,000 square feet in areas with less crime, key employers, and affordable rents between $1,600 to $2,000 per month.” Understanding short-term and long-term profitability metrics enables investors to align their strategies with their financial goals. Although some focus primarily on cash flow through rental income, others prioritize equity building through appreciation and selling the property for a profit. The most sophisticated investors consider both perspectives, recognizing that different properties within a portfolio might serve different financial objectives depending on market conditions and personal circumstances. Methods for analyzing the investment potential can vary somewhat, but the consistent theme is always taking the time to research for the chosen method. Andrew said, “There are several factors that go into profitability. What can you buy it for, what will it cost to do the rehab, and what does the ARV look like? Knowing those numbers, analyze if I’m buying and rehabbing at 65 to 70% LTV. This helps look at how much you are making monthly from the profit. While short-term profitability is great, I focus on building that asset base with appreciation to move out of the W2 world.”
For-profit potential, Anitha uses a “template that looks at minimum purchase value. We always try to get a cash flow of $200-$250 per month using a standard approach of deducting PITI (principal, interest, taxes, and insurance) and allowing for CAPEX (property improvement investments) and OPEX (operating expenses).” Like the others, Archana looks at potential cash flow. In addition, she said, “I have started talking to property managers. They’re a wealth of information. They know the area better and which ZIP codes will give you better rentals and appraisals. I talk to property managers before buying and giving out a bid.” 100% FINANCING Creative funding solutions through private lending enable successful investors to maximize acquisition capacity without depleting personal resources. The investors interviewed in this article discussed their experiences with buy-and-hold real estate investing. This approach involves buying a property, paying for the rehab with a short- term bridge loan, and then refinancing into a long-term loan for the property. Many use specialized loan programs designed specifically for investment properties, such as the 100% Fix-and-Flip Premier Loan that Rehab Financial Group offers. The structure of this program provides no-down-payment funding for both purchase and rehabilitation costs. Investors can undertake projects with minimal out-of-pocket expenditure if they keep more cash at the closing table. The additional benefits Rehab Financial Group offers include personal service during every step of the process, no income verification, less paperwork required
SUSAN NAFTULIN
Susan Naftulin founded RFG with partner Jeffery Goldberg in 2009. In addition to serving as managing member of RFG, Naftulin is an active member of the American Association of Private Lenders and previously served several terms on the Ethics Advisory Committee, where she continuously upheld the real estate industry’s values and supports professional conduct in private lending. Prior to becoming managing member of RFG, Naftulin held several senior management positions in the mortgage industry, including general counsel, managing attorney, chief operating officer, and senior vice president for both privately and publicly held mortgage lenders. Before entering the mortgage industry, Naftulin was a creditors’ rights attorney with the Philadelphia law firm of Fox Rothschild LLP.
52 | think realty magazine :: may - june 2025
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