Fix and Flip Loans For Real Estate Investors

What are Fix and Flip Loans?

Loans for Fix and Flip are loans made to real estate investors that are in the business of buying, rehabbing and then reselling properties at a profit.

Many times, these rehab loans are made on properties that have fallen into disrepair from the previous homeowner, or that have had fire or flood damage, or are just in desperate need of updating.

Typically, these are short term (12 month) loans for investors that fund not only a percentage of the purchase price, but also up to 100% of the funds needed to rehab the property and bring it to market.

The purchase price plus the rehab cost should not exceed 70% of the completed value to ensure there is enough room in the deal for you to make a profit when flipping the home.

Why Choose Fix and Flip Lending For Your Next Project?

Fix and Flip Lending is a vital tool for real estate investors. It is a loan made by a hard money lender for the investor to buy, fix and sell a house. More recently, many investors have been rehabbing houses and then renting them out to hold as a long term rental.

Banks just do not understand that you can buy a property, put some money into it, and it could be worth a considerable amount more once you do this.

Yes, I know banks have their 203k program, but closings on those are mostly limited to homeowners (this is not an investor product) and typically these are not quick easy closings like hard money loans are.

Not sure which markets you should be looking at (if you fix and flip outside your home market), then this article “where to invest as a fix and flipper in 2022” is a great read for you.

Fix and Flip FAQ’s 

How long will it take to close my Fix and Flip Loan? We can close a fix and flip in as fast as 7-10 days. 

Is an appraisal required for Fix and Flip loans? We do require a full appraisal, including interior access. If this is an auction property and there is no access, contact us!  (you need at least 5+ flips in that market or 10+ overall for our auction with no interior access program)

For your Fix & Flip loans do you verify income? For our Fix and Flip funding we will not ask you to verify your income, this is not a bank loan. 

Do you verify my previous experience? We require an REO Schedule spreadsheet to be filled out with your submission detailing previous flips as well as rentals you currently own. In some cases a purchase and/or sale HUD could be required. 

What fees will I be paying to close? Our fees are 2 points (generally), $1195 processing, $995 closing attorney, plus title, and appraisal (you pay the appraiser directly).

Is a personal guarantee required for fix and flip loans? Yes, a personal guarantee is required for all LLC members that own 20% or more in the borrowing entity.  

Do you lend to individuals? We do not, all loans MUST close with an LLC or Corporation on title. 

Do you work with brokers? Yes, of course, we work with brokers.

Do you have the prepayment penalties? There is no prepayment penalty on our fix and flip loans ever. We want you to get in and out as quickly as possible with no speed bumps.

Do you offer Fix and Flip Loans for 1st time flippers? Yes, we offer fix and flip loans for beginners, new investors are always welcome.  

Are you a direct lender? Yes, we are direct lenders. We do not broker loans out.

Besides Fix and Flips, what other loan programs do you offer?  Ground up construction loans and 30 year rental loan programs for landlords. 

What separates you from the other Fix and Flip Lenders? Being one of the oldest hard money lenders in the country we have vast experience in the market ups and downs, our low rates, second to none customer service, common sense underwriting and fast closings. Just because we are the oldest hard money lender doesn’t make us the best, but being the best kept us around long enough to be the oldest.