Investors often ask whether they have done enough deals to qualify. The honest answer is that experience rarely decides yes or no on its own. It decides how far the lender is willing to go: the leverage, the size of renovation it will fund, and how closely it will supervise the project. That is especially true from $1M upward, where a single project is a meaningful exposure.
What counts as experience
- Completed projects similar to the one you are financing: a flip counts for a flip, a ground-up build for a build
- Comparable size and scope: ten cosmetic flips at $300K are not the same evidence as one $2M gut renovation
- Verifiable records: closing statements for the purchase and the sale, deeds, or a schedule of real estate owned
- Recent activity: projects completed in the last few years carry more weight than older ones
- Rentals held and managed, which count toward bridge and DSCR files even if you have never flipped
Experience is one of several levers
Lenders read experience together with three other things. Credit: a clean personal credit history (or, for a foreign investor with no US file, a well-documented financial profile) supports higher leverage. Liquidity: cash beyond the down payment, available for overruns and carry. And the deal itself: the purchase price against value, the realism of the budget, and the exit.
Because the levers trade off against each other, two investors with the same number of past projects can receive different terms on the same property. A strong deal with low leverage requested can be approved for a first-timer; a thin deal can be declined for an experienced investor.
How experience changes the terms
Lenders apply these differently, which is why Passy Capital does not publish a single experience grid: the term sheet you receive reflects your whole file.
- Leverage: more verified experience generally supports a loan closer to the program maximum
- Renovation scope: heavier renovations relative to the purchase price are usually reserved for investors who have done comparable work
- Conditions: newer investors can be asked for a more experienced contractor, a larger contingency or more liquidity
- Process: repeat borrowers with a clean history usually move through underwriting faster
If you have little or no track record
- Start with a lighter renovation relative to the purchase price, which reads as lower risk
- Hire a licensed general contractor with documented projects of a similar scope
- Bring more equity than the minimum and keep visible reserves
- Partner with an experienced operator who joins the borrowing LLC and whose record counts toward the file
- Document relevant professional experience in construction, development or property management
Foreign investors
Experience gained outside the US counts if it can be documented: developments, renovations or a rental portfolio at home, supported by deeds, sale records or accounts. Lenders weigh US market knowledge, so a local contractor and property manager strengthen the file. The loan is made to a US LLC, on the same terms as a US investor, with no US credit history required.