Fix and Flip Loans

A fix and flip loan is short-term financing that real estate investors use to buy and renovate a property in order to resell it for a profit, a process known as flipping.

Fix and flip loans, sometimes known as bridge loans or rehab loans, are meant for short term renovation projects that require cash ASAP. They provide real estate investors with the funding needed to buy a property, rehab it, and sell it to an end-buyer. Some investors choose to get a conventional mortgage to meet these needs, but that type of loan comes with heavy restrictions that slow down approval time. A fix and flip loan is a type of bridge financing meant to help investors quickly purchase the property, fund the renovations, and list it for sale or refinance into a long term rental loan if they choose to keep it in their portfolio.

To qualify for a fix and flip loan, you’ll need a minimum credit score of 620, a solid business plan and a property that can be improved and sold for a higher price. The amount borrowed typically depends on the property’s after-repair value (ARV).

Unlike other types of loans, fix and flip loans are designed specifically for short-term investments and are typically meant to be paid within 12 to 18 months. This translates into higher monthly payments, so make sure you have enough cash to cover repayment.

Some of our fix and flip loans have interest-only payments before the loan is due, making it easier to manage borrowing costs before flipping the property. Then, once the renovations and repairs are complete, you can sell the property to pay off the fix and flip loan balance.

Fix and flip loans are best for experienced real estate investors who know how to identify target properties, understand the costs of renovating properties and can sell the updated properties quickly.

We offer up to 90% of the Purchase Price + 100% of the renovation cost as long as LTV (loan to value) does not exceed 70% of the ARV.

Fix and Flip loans can be used for 1-4 and 5-9 unit properties, condos, and townhomes.

We accept projects where you plan to sell the property after rehabbing or hold on to the property and rent it out.

AirBnB is becoming more of a significant opportunity in this environment

• While we do accept first time flippers, we prefer those who have flipped at least 3x in the past 3 years.
• In the case of new construction, you would have to have performed similar builds at least 5x in the past 3 years.
• All projects must be non-owner residential properties.
• Minimum FICO 620
• Minimum As-Is Property Value:
  • $50k for Single-Family
  • $25k per Unit for 2-4 Family
  • $35k per Unit for Multi-Family (5+)/Mixed-Use
• You must be an LLC.

• Potential for high returns on investment
• Flexible terms
• Interest only payments
• Fast approval
• Different property types are accepted
• Underwriting is based on the investment rather than personal income

• High interest rates
• Short terms (12-18 months)

Depending on your story and need we will likely have other loan options available. Perhaps with even better terms than our traditional fix and flip options.