Fix and Flip Investor’s Guide
How to Fund, Renovate, and Profit in Today’s Market
Fix and flip investing has surged in popularity over the past decade—and for good reason. With housing inventory tight and demand for move-in-ready homes rising, investors who can identify undervalued properties, renovate strategically, and sell quickly are seeing strong returns. Whether you’re a first-time flipper or a seasoned rehabber, this guide will walk you through the full lifecycle of a flip—from sourcing deals to cashing your check.
What Makes a Successful Flip Investor?
Success in flipping isn’t just about swinging hammers or watching HGTV. It’s about:
Market knowledge: Understanding local comps, buyer demand, and renovation ROI
Financial discipline: Sticking to budgets and timelines
Team building: Working with reliable contractors, lenders, and agents
Exit strategy: Knowing how and when to sell or refinance
The best investors treat flipping like a business—not a hobby. They analyze deals, mitigate risk, and build repeatable systems.
How to Find Profitable Flip Deals
Finding the right property is half the battle. Here are proven strategies:
MLS & On-market listings: Look for price drops, long DOM, or cosmetic distress
Wholesalers: Build relationships with local wholesalers who bring off-market deals
Direct mail & door knocking: Target absentee owners or distressed properties
Auctions & foreclosures: Bid strategically with rehab costs in mind
Investor meetups & REI groups: Network for referrals and joint ventures
Before you buy, run the numbers: ARV – (Purchase Price + Rehab + Holding Costs) = Profit Margin
Funding Options for Fix and Flip Investors
You’ve found the deal—now you need capital. Here are your top options:
1. Hard Money Loans
Fast, asset-based funding with flexible underwriting. Ideal for flips needing rehab.
Explore our guide to hard money loans for house flips
2. Private Lenders
Individuals or investor groups offering short-term capital. Terms vary widely.
3. Equity Partnerships
Split profits with a capital partner. Great for scaling but requires trust and clear agreements.
4. Cash or HELOC
If you have equity or liquidity, you can self-fund—but that limits scalability.
For new investors, hard money is often the fastest and most scalable option.
Rehab Planning and Budgeting
Renovation is where profits are made—or lost. Plan carefully:
Scope of Work: Define every task before closing
Contractor Bids: Get 2–3 bids per trade
Permits: Know what’s required in your market
Timeline: Build in buffer time for delays
ROI Focus: Prioritize kitchens, bathrooms, flooring, and curb appeal
Use draw schedules to release rehab funds in stages. Learn how our rehab draws work.
Exit Strategies: Resale, BRRRR, or Refinance
Once the rehab is done, you have options:
1. Resale (Traditional Flip)
List with an agent, stage the home, and sell for top dollar.
Timeline: 3–6 months total
Ideal for: Cosmetic flips, hot markets
2. BRRRR Strategy
Buy → Rehab → Rent → Refinance → Repeat
Timeline: 6–12 months
Ideal for: Long-term wealth building
3. Cash-Out Refinance
Refinance into a DSCR loan and pull equity out.
Explore our 5+ unit multi family program.
Need bridge funding? See our commercial loans.
How Private Lenders Evaluate Flip Deals
Private lenders focus on the numbers—not your tax returns. Here’s what they care about:
- Purchase Price vs. ARV
- Rehab Budget and Timeline
- Comparable Sales (Comps)
- Exit Strategy (Sale or Refi)
- Investor Track Record (optional)
If the deal pencils out, funding is often just days away.
Pros and Cons of Using Private Lenders
Pros | Cons |
Fast approvals | Higher interest rates |
Flexible underwriting | Shorter loan terms |
Rehab funds available | May require personal guarantees |
Ideal for distressed assets | Less regulation = more risk |
Hard Money vs. Private Lending
Hard money lenders are a subset of private lenders—but with structured programs and institutional backing. They offer:
- Same-day rehab draws
- Nationwide coverage
- Transparent terms
- No income docs
Want to compare side-by-side? Check out our guide: Hard Money Loan for House Flip
Case Study: Flip Funded by a Private Lender
Investor: Sarah M., Charlotte NC
- Purchase Price: $150K
- Rehab Budget: $40K
- ARV: $275K
- Funding: $170K from private lender
- Timeline: Closed in 6 days, sold in 4 months
- Profit: $65K net after fees
Fix & Flip Loan Program
If you're actively flipping properties or planning your first rehab, our Fix & Flip Loan Program is built for speed, flexibility, and investor control. We fund up to 90% of the purchase price and 100% of rehab costs—with same-day draws and no income documentation. Whether you're tackling a cosmetic flip or a full gut renovation, this program helps you close fast and scale confidently.
Loan Types Overview
Not sure which loan fits your deal? Our Loan Types Overview breaks down every program we offer—from fix and flip loans to rental refinancing, new construction, commercial bridge loans, and more. It’s the perfect starting point for investors who want to compare options and choose the right funding strategy for their next project.
Asset-Based Loans
Have equity but challenged credit or unconventional income? Our Asset-Based Hard Money Loans are designed for investors who want to leverage property value—not paperwork. These loans are ideal for refis, acquisitions, or cash-out scenarios where speed and simplicity matter more than tax returns.
Hard Money Loan for House Flip
Flipping a property and need fast funding? Our Hard Money Loan for House Flip guide walks you through the entire process—from deal submission and rehab draws to resale and repayment. Packed with infographics, timelines, and real investor scenarios, it’s a must-read for anyone serious about scaling their flip business.