Fix and Flip Loans

Best uses

• Acquiring distressed properties at a discount
• Funding renovation budgets through draws
• Competing with cash buyers on speed
• Bridging to a sale or a refinance into a rental loan

Typical borrower profile

• Active flippers scaling deal volume
• First-time flippers with a solid plan and budget
• Investors converting flips into rentals via BRRRR

Potential qualification factors

Every lender sets its own criteria, and no factor guarantees or blocks approval on its own. Commonly reviewed items include:

• Deal economics: purchase price, rehab budget, and after-repair value
• Investor experience level
• Credit profile and liquidity for down payment and reserves
• Realistic scope of work and timeline

Documentation to have ready

• Government-issued ID
• Entity documents (LLC or corporation)
• Purchase contract or payoff statement
• Property details and photos
• Insurance quote or declarations page
• Scope of work and rehab budget
• Comparable sales supporting the after-repair value
• Track record of completed projects, if any

Benefits

• Fast closings help win competitive deals
• Rehab funds included through draw schedules
• Experience unlocks better leverage and pricing over time
• Interest-only payments during the project are common

Common challenges to plan for

• Short terms mean the clock is always running
• Draw inspections add process steps
• Cost overruns and slow sales compress profit

Frequently asked questions