Dr. Toby PotterCEO and Founder, The Unshakable Investor · Real Estate Investor Success Coach

Investor Finds Deal, But Bank Backs Out Last Minute

Name: Investor Finds Deal, But Bank Backs Out Last Minute
Uploaded: 2025-07-31T22:04:31+00:00
Duration: 34 s
Channel: Dr. Toby Potter
Description: In a brief dialogue, Speaker B informs Toby that the bank has withdrawn financing for a real‑estate flip after a final inspection flagged significant…

31 Jul 2025 · 1 min

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In a brief dialogue, Speaker B informs Toby that the bank has withdrawn financing for a real‑estate flip after a final inspection flagged significant deferred maintenance—specifically the roof, wiring, and HVAC. Despite the setback, Speaker B still has a viable deal: a $250,000 purchase price, $65,000 planned rehab, and an after‑repair value (ARV) of about $425,000, with crews, permits, and a three‑day extension from the seller already secured. Toby, representing a private lending firm, immediately offers to fund the project based on the after‑repair valuation rather than the current condition. He requests the rehab scope and contractor details, promises to underwrite the loan within a day, and aims to close the transaction by the end of the week, citing the firm’s track record as Private Lender of the Year and a fast‑growing company. The conversation showcases the contrast between traditional bank financing requirements and private lender flexibility, and it outlines the key financial metrics and next steps needed to move the deal forward.

Hey, I was just checking in with you to see if the bank ever funded that deal that you were working on. Oh, Toby, they literally just called me and backed out. Oh my gosh.
Said the house didn't pass the final inspection and they're pulling the loan.
Was it because of the condition of the property? What was the reason?
Yeah, too much deferred maintenance. It's all cosmetic though, but they flagged the roof, the wiring, and the outdated HVAC.
You know, that doesn't surprise me at all. You know, banks want picture-perfect properties. Good news is we don't. So is the deal still alive or is it dead? Where are you at?
The seller gave me a 3-day extension to figure it out. About a $250,000 purchase price. It has $65,000 in rehab and the ARV is right around $425,000. I've already lined up all the crews, all the permits. We're ready to go.
So let's do this. We're going to have to jump through hoops for you, but we're going to make this deal happen. If these numbers work, first thing I need you to do is send me the rehab scope of work, the contractor's information. I'll work through this right the minute you send it to me. I'll stop stop what I'm doing. I'll get you terms out by tomorrow and we can close this deal by the end of the week. Wait, seriously? Even after the bank just pulled out? We fund deals on after-repair valuation, not current value. We love these projects. This is what we do. This is what's made us the Private Lender of the Year, top 100 fastest growing companies. So yes, I'll let the seller know. You brought us a good deal. Now let's just get it done. Thank you.