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.