Charlotte Fix and Flip Loans Guidelines

When it comes to fix and flip loans in Charlotte, North Carolina, there are several lenders offering financing for real estate investors. Let’s explore some guidelines and examples:

1. Loan Amounts and Interest Rates:

   • The average note amount for fix-and-flip loans in Charlotte is approximately $281,875.
   • The median interest rate for private loans in the city is 12%.
   • The typical loan term is around 21 months.
   • Origination fees usually average 3.1 points¹.

2. Example 1:

   • Alfred finds a condo in the Plaza Hills subdivision of Charlotte, priced at $190,000.
   • He takes a hard money loan from Red Oak Funding Corporation.
   • The loan-to-value (LTV) is set at 70%, so Alfred funds 30% of the sales price in cash.
   • The loan amount from Red Oak Funding Corporation is $133,000.
   • The loan terms include a 12% interest rate for 12 months.
   • An additional 4-point origination fee is paid upon closing.
   • Alfred’s monthly interest-only payments to the lender would be $1,330.
   • If he sells the property for $285,000 after 12 months, his gross profit (excluding renovation costs) would be $73,720¹.

3. Example 2:

   • Sylvia discovers a property in the Barclay Downs neighborhood of Charlotte, priced at $200,000.
   • She takes a fix-and-flip loan from Progressive Investment Corporation:
     • 70% loan-to-value (LTV).
     • 12-month term.
     • 11% interest rate.
     • 2% origination fee.
   • If Sylvia achieves her goal of selling the property for $240,000, her gross profit (excluding taxes or rehab costs) would be $21,800¹.

Remember that each lender may have specific guidelines and terms, so it’s essential to explore options and choose the best fit for your fix-and-flip project!