Fix & Flip Loans for Real Estate Investors

Fix and flip loans are perfect for real estate investors looking to acquire non-owner-occupied properties with plans to renovate and resell for profit. These loans serve as a vital form of real estate investment financing for both first-time and seasoned investors engaged in single-family, condominium, or 2-4 unit multifamily renovation projects. Additionally, we partner with lenders offering fix and flip loans for investors tackling 5+ unit multifamily projects, provided they have substantial experience. 

Our offerings cater specifically to property investors purchasing distressed or value-add properties, those undertaking cosmetic or comprehensive renovations, and borrowers requiring fast closings and short-term real estate loans. Furthermore, we assist investors planning to sell or refinance after renovations, as well as those with mid-construction projects that have exhausted rehab funds yet possess enough equity to refinance.

Fix and flip loans are a type of short-term real estate loan designed to facilitate the purchase of an investment property, often covering renovation costs as well. The approval for these fix and flip loans predominantly hinges on the property itself, the scope of renovations required, and the anticipated after-repair value, rather than on the personal income of the borrower. 

Funds allocated for renovations are usually released in stages as the work progresses, enabling investors to effectively manage their cash flow throughout the project. Typically, most short-term real estate loans in this category are structured to be interest-only during the renovation phase.

Financing based on after-repair value (ARV) is essential for real estate investment financing. We offer short-term real estate loans tailored for purchase and refinance. Rehab funding is available for qualified projects, ensuring fast approval and closing timelines. Our flexible underwriting supports real estate investors, with no owner-occupancy required, making our fix and flip loans an excellent option.

Fix and flip loans are a valuable option for real estate investment financing, useful for both property purchases and refinances. Purchase loans enable investors to acquire and renovate properties, while refinance loans provide access to equity after renovations are completed. Many investors leverage fix and flip refinances as part of a BRRRR strategy or transition into longer-term rental financing, such as a DSCR loan, following the rehab phase. In many cases, we assist borrowers who are mid-construction and require additional funds. This process adds a few more layers to qualify, but we offer excellent resources to help borrowers secure the short-term real estate loans they need to keep their projects on track.

Loan terms for fix and flip loans typically range from 6 to 24 months. Interest-only payment options may be available for those looking at real estate investment financing. Loan amounts are based on the purchase price, rehab budget, and After Repair Value (ARV). Factors such as property type, project scope, and borrower experience influence these terms for short-term real estate loans.

For instance, a new borrower with no direct experience may be offered terms like 90% of the Purchase Price and 100% of Rehab Funds at an interest rate of 11.99% for 12 months. The loan parameters in this case are limited to 90% of Purchase Price (LTP) and 75% of Loan to ARV (LTARV).

In contrast, a borrower who can demonstrate 5 completed projects may receive more favorable terms, such as 92.5% Loan to Cost (LTC) along with 100% of Rehab Funds, at a lower interest rate of 8.99% for the same duration. Here, the loan parameters are capped at 92.5% of Loan to Cost (LTC) and 75% of Loan to ARV (LTARV).

These ratios and thresholds can vary significantly between lenders, depending on each borrower's unique scenario. These examples are provided as a guideline and are indicative of the kind of terms that may be offered, but they are not guaranteed.

For Purchase Transactions with fix and flip loans:

- Full property address of the property you intend to purchase or refinance.

- The purchase price you will offer.

- Estimated renovation budget and brief overview of the scope of work (lite rehab versus moving walls, fixing foundations, adding square footage, etc...).

- Expected ARV once renovations are completed.

- Timeline to complete the renovations.

- How the title is going to be held (individual, entity, or trust).

- Borrower's experience level and exit strategy (sell or refinance to hold as a rental).

- Borrower's estimated FICO scores.

- Borrower's current liquidity available.

For Refinance Transactions in real estate investment financing:

- Full property address of the property you intend to refinance.

- The purchase price and date of original acquisition.

- Amount of rehab spent on improvements since acquisition, if any.

- Current debt owed on the property.

- Estimated renovation budget and brief overview of the scope of work (lite rehab versus moving walls, fixing foundations, adding square footage, etc...).

- Expected ARV once renovations are completed.

- Timeline to complete the renovations.

- How the title is currently held or will be held at closing (individual, entity, or trust).

- Borrower's experience level and exit strategy (sell or refinance to hold as a rental).

- Borrower's estimated FICO scores.

- Borrower's current liquidity available.

For Mid-Renovation Transactions utilizing short-term real estate loans, we will need all the same information as a refinance but also:

- Estimated AS IS value of the property, as it sits now.

- Amount of rehab spent so far.

- Amount of rehab budget remaining to complete.

- Detailed narrative explaining why the project is incomplete.

- Current photos or videos of the project as it currently sits.

These criteria are all that is needed to provide a soft quote and often take as little as a few hours to provide.

For more information on fix and flip loans or real estate investment financing, please visit our comprehensive FAQ page. You can also complete our Quick App to get your quote for short-term real estate loans started now.