Cash Buyers Close in Days. Now So Can You.
Fix and flip financing judged on the deal and the after-repair value, not your tax returns: the purchase funded at closing, and in many programs, 100% of the rehab budget behind it.
How the Loan Is Built.
A fix and flip loan has two parts. The initial advance funds most of the purchase price at closing: as much as 90% or more in some programs for experienced investors. The rehab holdback covers the renovation budget, up to 100% of it in many programs, released in staged draws as each phase of work is completed and passes inspection. You're never fronting the whole project; the loan is shaped like the project itself.
ARV Runs This Show.
Everything in a flip loan traces back to the after-repair value: what the property will be worth when the work is done, supported by comparable sales of renovated homes nearby. Most programs cap the total loan around 70 to 75% of that number, which is the built-in discipline of this lending: if the deal doesn't leave room under the ARV ceiling, the deal probably wasn't good enough to do. A detailed scope of work and credible comps are what move a file fast.
The Shape of the Deal.
Terms typically 12 to 24 months, interest-only, with extension options in many programs.
No tax returns and no W-2 requirement: the project's numbers carry the file.
LLC and entity vesting welcome in most programs, with a personal guaranty.
Single-family, 2-to-4-unit, condo, and townhome projects, non-owner-occupied only.
Closings in days, not months, in many programs: the speed that competes with cash offers.
Experience Is Rewarded. First Projects Are Welcome Anyway.
Leverage in this lending is tiered to track record. Investors with completed projects in the last couple of years unlock the highest advances; a first flip gets more modest terms, a tighter rehab budget, and more scrutiny on the scope of work. That's not a wall, it's a ramp, and related experience (general contracting, renovation-savvy agents, property management) can sometimes count toward the tier. The honest move on a first project: buy a lighter rehab, build the record, and let the leverage grow with you.
Flip It, or Keep It. The Exit Is a Choice, Not a Trap.
Every flip loan ends one of two ways: the sale, or the hold. Plenty of investors finish the renovation, look at the rental numbers, and refinance out of the flip loan into a long-term DSCR loan instead, keeping the door and the cash flow. If that's the direction a project takes, the DSCR side of this practice is one page away.
An investor gets a tired three-bedroom under contract at a real discount, with a 14-day close the seller won't move on. The loan funds most of the purchase at closing and the full rehab budget in staged draws, the crew starts Monday, and ninety days later the comps that justified the ARV justify the sale price too.
Illustrative example; every scenario differs.
What You'll Need.
- The purchase contract.
- A detailed, line-item scope of work, ideally with contractor bids.
- Entity documents if vesting in an LLC.
- Proof of funds for your side of the closing.
- A realistic exit plan: the sale comps, or the rental numbers if the hold is on the table.
Your buyer with the 10-day deadline doesn't need a bank, they need this page. If you move off-market deals or carry listings that need vision, this is the financing that keeps your closings on schedule.
Program availability, terms, and qualification vary by scenario.
Find Out in 60 Seconds Where Your Path Starts.
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