The purchase
What you are paying against what the property is worth today. Buying well is most of the protection for both you and the lender.
Buy it, fix it, and get out on schedule.
A fix and flip loan finances the purchase and the renovation together, on a short timeline built around the project rather than around a 30-year horizon. The underwriting is about the deal, not just the borrower.
How the money works.
These loans typically fund the acquisition up front and hold the rehab budget back in reserve, releasing it in draws as work is completed and inspected. You are not paying interest on renovation money you have not spent yet, and the lender is not handing over the full budget on day one.
That structure is why the scope of work matters so much. A realistic budget with a credible contractor moves quickly. A vague one slows everything down, because the draw schedule is built directly from it.
- Purchase plus renovation on a single loan
- Properties a conventional lender will not finance as-is
- Experienced flippers and, with some lenders, first projects
- Auction and short-escrow purchases
- Vesting in an LLC
Budget for the timeline, not the best case
Most flips that go wrong go wrong on time, not on cost. Permits take longer than expected, a contractor falls behind, the market cools during the hold. Build the schedule with room in it, and know what an extension costs before you need one.
What the lender is underwriting.
Three questions decide the loan, and only one of them is about you.
The scope
The work, the budget, and who is doing it. This drives the draw schedule, so a detailed scope is worth the hour it takes to prepare.
The exit
The value after repair, and how you will realise it — a sale, or a refinance into a DSCR loan if you plan to hold it as a rental.
Flipping it, or keeping it?
Decide before you borrow, because the two paths want different loans. If you are selling, a short-term rehab loan and a clean listing plan is the whole story. If you might hold it as a rental, we should be looking at the take-out financing now — usually a DSCR loan that qualifies on the finished property’s rent — so you are not scrambling for permanent financing when the rehab loan comes due. Getting this wrong is the most common expensive mistake we see.
What we will ask you for
What we will ask you for
- The purchase contract, or the property address if you are refinancing into a rehab
- Detailed scope of work and renovation budget
- Contractor information and licensing
- Your track record on previous projects, if you have one
- LLC operating agreement and filing, if vesting in an entity
- Your exit plan and target timeline
Common questions.
Do I need previous flips to qualify?
Not always, but experience helps materially with both approval and pricing. If this is your first project, a strong contractor, a conservative budget, and meaningful cash in the deal go a long way. Tell us it is your first — some lenders are far more receptive to new investors than others and we will steer you there.
How do draws actually work?
You complete a stage of work, request a draw, and the lender inspects before releasing those funds. That means you need working capital to front each stage. Investors who have not planned for that are the ones who stall halfway through.
What if the project runs long?
Extensions are often available and generally cost money. Ask what an extension costs at the time you take the loan rather than when you need it — the answer sometimes changes which lender you should have used.
Can I live in the property while renovating?
Generally no. These are business-purpose loans on investment property, and occupying it changes the regulatory picture entirely. If you intend to live there, say so up front, because it is a different loan.
How is this different from a construction loan?
A fix and flip loan renovates an existing structure. A ground-up construction loan builds from land, involves permits and plans, and runs on a longer and more heavily inspected schedule.
Bring us the deal.
Send the address, the purchase price, the scope of work, and what you think it is worth finished. We will tell you quickly whether the numbers support a loan.