Fix & Flip Financing

For real estate investors looking to purchase, renovate, and resell properties for profit, fix & flip financing is an essential tool. Traditional mortgage loans often don’t fit the needs of flippers due to their long approval times and restrictions on distressed properties. Here’s what you need to know about securing funding for your next flip.

What is Fix & Flip Financing?

Fix & flip loans are short-term financing options designed specifically for investors who purchase homes, renovate them, and sell them for a profit. These loans are structured to provide quick funding, covering both the property purchase and renovation costs.

Key Features of Fix & Flip Loans

- Short-Term Loans – Typically 6 to 24 months, structured as interest-only or balloon payments.

- High LTV & ARV (After Repair Value) – Lenders often fund 80-90% of purchase price and up to 100% of renovation costs.

- Fast Approvals – Asset-based lending focuses more on property value and investor experience than personal credit scores.

- Flexible Exit Strategies – Sell for profit or refinance into a long-term rental loan.

Types of Fix & Flip Loans

1. Hard Money Loans – Short-term, high-interest loans with fast approval, ideal for investors needing immediate capital.

2. Bridge Loans – Temporary financing used while waiting for a longer-term loan or sale of the property.

3. Private Money Loans – Funding from individual investors rather than traditional lenders, often with flexible terms.

4. HELOC or Cash-Out Refinance – Using existing home equity to fund a flip project.

Who Can Benefit from Fix & Flip Financing?

- Experienced investors scaling their flipping business.

- First-time flippers needing quick access to capital.

- Buyers targeting distressed properties for resale.

- Investors leveraging short-term financing for high returns.

Final Thoughts

Securing the right financing for a fix & flip project is key to maximizing profitability. Whether you’re a seasoned investor or new to flipping, choosing the right funding option can make all the difference. If you’re considering your next project, let’s run the numbers and explore the best financing strategy for your goals.