Fix-and-flip investing can be highly profitable — but only if you can close fast and access capital before another buyer swoops in. That’s exactly what fix-and-flip loans are designed for.
What Is a Fix-and-Flip Loan?
A fix-and-flip loan is a short-term, asset-based loan that finances both the purchase and renovation of a distressed property. Unlike conventional mortgages, these loans are designed to close in days — not months.
Key Terms for Fix-and-Flip Loans
- Loan amount: Up to 90% of purchase price + 100% of rehabilitation costs
- LTV basis: Based on After-Repair Value (ARV), not current as-is value
- Loan term: 6–24 months (interest-only payments)
- Closing timeline: 5–10 business days
- Property types: SFR, 2-4 unit, condos, small commercial
- Credit: 600+ (asset-based — property and deal merit matter most)
After-Repair Value (ARV) — The Key Number
Fix-and-flip lenders focus on ARV — what the property will be worth after renovations are complete. A property worth $150,000 today with $50,000 in renovations and an ARV of $275,000 has strong fundamentals for fix-and-flip financing.
We use an appraisal or BPO (broker price opinion) to determine ARV, then loan up to 70–75% of that value.
How Draw Schedules Work
Rehab funds are held in reserve and released in draws as work is completed. You submit draw requests with photos or contractor invoices, and funds are released within 24–48 hours. This keeps your project moving without tying up your own capital.
Exit Strategy: Sell or Refi
Most fix-and-flip investors exit by selling the renovated property. Some choose to refinance into a long-term DSCR loan if they want to hold it as a rental — the “BRRRR” strategy.
Ready to fund your next flip? See our Fix & Flip Loan program or apply now for a free quote. We close in 5–10 days.