First Long Island Flip: Your Pre-Approval Checklist

If you're thinking about flipping your first property on Long Island, you need more than just a pre-approval letter from some bank. The market here moves at lightning speed, with properties getting multiple offers within days. I've funded a steady stream of flips across Nassau and Suffolk counties, and the investors who succeed aren't just financially prepared—they're strategically positioned before they even start looking.

What's Inside This Guide

• The Market Reality Check You Need
• Getting Your Financing Actually Pre-Approved
• Building Your Core Team Before You Need Them
• Running the Numbers That Matter
• The Permit Process Nobody Talks About
• Your Next Action Steps

The Market Reality Check You Need

The Long Island real estate market in 2025 is brutal for buyers but fantastic for sellers. We're seeing median sale prices pushing past $700,000 across the island, with Nassau County hitting $860,000. Properties are selling for 102% to 106% of asking price in many areas.

I see it every day—experienced investors losing deals because they weren't prepared to move fast enough. In Smithtown, 86% of homes are selling above asking price. That's not a typo. You're not just competing against other investors; you're up against desperate homebuyers willing to waive inspections and pay cash.

The inventory shortage is REAL. We're sitting at about three months of supply in Nassau County, well below the balanced market threshold. This isn't changing anytime soon, despite what some people are hoping for with interest rates.

Nassau vs. Suffolk: Know Your Battlefield

Nassau County is expensive and competitive. Your median property tax bill alone is $11,613 per year—that's nearly $1,000 monthly just in taxes during your hold period. Factor in purchase prices starting at $800,000 for anything decent, and you need serious capital to play here.

Suffolk County offers more flexibility with median prices around $670,000 to $688,000. You've got more diverse opportunities, from middle-class neighborhoods to the ultra-luxury Hamptons market. The Hamptons median just crossed $2 million for the first time, but there are still deals in central Suffolk if you know where to look.

Ready to get your financing lined up? Apply for a loan now and let's discuss your market strategy.

Getting Your Financing Actually Pre-Approved

Here's the truth: if you're trying to use a conventional bank loan to flip houses on Long Island, you've already lost. Banks take 30 to 60 days to close. By then, the property you wanted has been sold twice.

Hard money is how serious flippers operate here. Yes, you're paying 10% plus in interest, but you can close in days, not months. More importantly, we fund both the purchase AND the renovation, which most banks won't touch.

The Documents You Actually Need

When investors contact my office, these are the questions I ask:

• What is the name of your LLC or corporation?
• Walk me through the financial calculations for the project/investment
• Do you have a real estate attorney already on retainer?
• Do you have a GC with a background in investment properties?

I don't care if your credit score is 850 or 650. I care about the deal and whether you can execute. Show me a solid ARV, realistic construction costs, and that you've done your homework.

The Real Budget Numbers

Forget the 70% rule you read about online. On Long Island, with our costs, you need to work with 60-65% maximum of ARV minus repairs. Here's what a real flip budget looks like for a 1,500 square foot house in central Suffolk:

Item	Cost
Purchase Price (at 65% of $650K ARV minus repairs)	$322,500
Renovation Budget	$100,000
Contingency (20% - and you WILL need it)	$20,000
6-Month Holding Costs (loan, taxes, insurance, utilities)	$29,430
Selling Costs (commission, transfer tax, attorney)	$45,850
Total Investment	$517,780
Target Sale Price	$650,000
Projected Profit	$132,220

Notice those holding costs? Property taxes alone run $5,000 for six months. Insurance on a vacant property? Another $1,800. These numbers kill deals if you're not prepared.

Building Your Core Team Before You Need Them

You can't flip houses alone on Long Island. The investors who succeed have their team assembled and ready before they find their first deal. When a property hits the market, you have hours, not days, to make decisions.

Your Investor-Savvy Real Estate Agent

Not all agents understand investors. You need someone who searches the MLS daily for keywords like "fixer-upper," "as-is," and "needs work." More importantly, they need access to pocket listings—properties that haven't hit the market yet.

A good investor agent provides accurate ARV analysis using real MLS data, not Zillow estimates. They know the difference between cosmetic updates and structural problems. They can write offers that compete without going crazy on contingencies.

Your General Contractor: The Make-or-Break Player

Your contractor controls whether you make money or lose it. They need to provide detailed, line-item bids that are realistic for Long Island costs. We're talking $150 to $250 per square foot for gut renovations here, not the $75 you see in other markets.

More importantly, they need to understand the permit process in your target towns. Every municipality on Long Island has different requirements. Some towns take six months just for permit review. Your contractor should know this before you buy.

Want to make sure your team and financing are aligned? Let's get your pre-approval started and review your strategy together.

Your Real Estate Attorney: Non-Negotiable in New York

You need an attorney for every real estate transaction in New York State—it's the law. Budget $995 to $2,100 per transaction, and yes, you pay this twice (purchase and sale). Our legal team is local and super fast, which matters when you need to close quickly.

Running the Numbers That Matter

Every successful flip starts with accurate numbers. The After-Repair Value (ARV) is everything—get this wrong, and nothing else matters.

Finding Real Comps

Your ARV comes from comparable sales, and on Long Island, "comparable" means very specific criteria. Same school district, within a quarter mile, similar square footage (within 20%), and—this is KEY—renovated to the same standard you're planning.

You can rely on a great realtor to provide accurate CMAs from the MLS. Public sites like Zillow are useful for initial research, but they often miss crucial details about condition and recent updates.

The Acquisition Formula That Works

Here's my formula for Long Island: Maximum Purchase Price = (ARV × 0.65) - Renovation Costs

Example: If ARV is $650,000 and renovations are $100,000:
($650,000 × 0.65) - $100,000 = $322,500 maximum purchase price

This gives you room for all those Long Island-specific costs that eat into profits. Remember, you're paying some of the highest property taxes in the nation plus premium contractor rates.

The Permit Process Nobody Talks About

This is where deals die on Long Island. Each town has its own building department, forms, fees, and timeline. Hempstead processes permits differently than Smithtown, which is different from Huntington.

You CANNOT sell a house with unpermitted work to anyone using conventional financing. The bank won't allow it. That beautiful kitchen you installed without permits? Worthless if you can't sell the house.

Common Permit Triggers

Almost everything requires permits here: Kitchen and bathroom renovations, electrical panel upgrades, HVAC replacements, structural changes, and even large decks. Some towns require permits for replacing more than three windows.

The Certificate of Occupancy is your final hurdle. This document proves the house is legal and safe to occupy. Without it, you cannot close with a buyer using financing. Getting a CO can take months if you didn't plan properly from the start.

Working with expeditors like Captain Permit can speed things up, but you're still looking at weeks or months depending on the town. Factor this into your timeline or watch your profits evaporate in holding costs.

Your Next Action Steps

Success in flipping comes down to preparation meeting opportunity. Before you look at a single property, you need these pieces in place:

Week 1: Get Your Financing Ready

Schedule a call with me to review your situation. Bring your numbers—how much capital you have, your target purchase price range, and your renovation budget estimates. We'll determine if hard money makes sense and get you pre-approved for real, not just on paper.

Week 2: Assemble Your Team

Interview at least three investor-friendly agents. Get quotes from three general contractors for a hypothetical flip. Retain a real estate attorney who handles investor transactions regularly.

Week 3: Know Your Market

Pick three target towns and study their recent sales. Visit open houses to see what $650,000 buys versus $850,000. Drive through neighborhoods looking for distressed properties—overgrown lawns and overflowing mailboxes are tells.

Week 4: Run Practice Deals

Take properties from the MLS and run the COMPLETE numbers. Include every cost I've outlined. Most won't work—that's normal. You're training your eye to spot the ones that will.

Ready to turn this knowledge into action? Apply online now or call my office to discuss your first flip. We fund deals from Valley Stream to Montauk, and I personally review every application.

The Bottom Line

Flipping houses on Long Island in 2025 isn't for the unprepared. The market is unforgiving, the costs are high, and the competition is fierce. But for investors who do their homework, build the right relationships, and move with speed and precision, the opportunities are real.

I've successfully funded flips across Nassau and Suffolk counties, from $500,000 gut renovations to $2 million Hamptons transformations. The investors who succeed aren't necessarily the ones with the most money—they're the ones who are most prepared.

Stop hoping and start preparing. Get your financing pre-approved, your team assembled, and your market knowledge sharp. When the right deal appears—and it will—you'll be ready to move while others are still trying to figure out their financing.

The Long Island market rewards speed, preparation, and local knowledge. If you have those three things, plus the right funding partner, you can build a profitable flipping business here. Just remember: in this market, "good enough" preparation isn't good enough. You need to be EXCEPTIONAL.