Backflip Co-Founder Jake Rome on Vertically Integrated Lending, Leverage Risk, and the Future of Fix & Flip Financing
Jake Rome, co-founder of Backflip, joins us to share the wild journey from institutional real estate private equity to building a vertically integrated lending platform for fix-and-flip investors! Jake breaks down the return-on-equity math that makes single-family flips so powerful, then digs into the leverage and risk decisions that separate successful investors from those who blow up their portfolios. He explains why Backflip decided to service and securitize its own loans, what red flags show up in underwriting (wholesaler markups, seller concessions), and how Chicago's Cook County foreclosure timeline uniquely impacts local lending. Jake also shares his outlook on where the fix-and-flip capital markets are headed, plus how he's using AI to run his own real estate portfolio. If you enjoy today's episode, please leave us a review and share with someone who may also find value in this content!
02:07 – Housing Provider Tip: What to do when a tenant stops paying rent
04:04 – Intro to our guest, Jake Rome of Backflip!
06:07 – From institutional real estate private equity to startups
13:44 – How the idea for Backflip was born
19:25 – Breaking down return on equity on a fix and flip
23:27 – Understanding leverage, risk, and how much is too much
28:09 – Building Backflip: raising capital and servicing their own loans
34:13 – Underwriting red flags: wholesaler markups & seller concessions
39:17 – Where Backflip lends, and the Cook County foreclosure timeline
44:36 – Red flags for first-time construction loan borrowers
46:39 – What lenders actually look for: credit score, experience, liquidity
51:10 – Building community: closing dinners and "Burgers and Flips"
53:19 – The future of fix-and-flip lending and securitization
56:08 – Competitive advantage & advice for new investors
57:53 – How listeners can learn more about Jake and Backflip
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Connect with Mark and Tom: StraightUpChicagoInvestor.com
Email the Show: StraightUpChicagoInvestor@gmail.com
Guest Name: Jake Rome
Guest Company: Backflip
Guest Link: CTA - "Ready to fund your next deal? Apply with Backflip here."
