A Fix and Flip Loan is short-term financing designed for real estate investors looking to purchase, renovate, and resell properties for profit. These loans provide quick access to capital, allowing investors to act fast on undervalued or distressed properties and improve them for resale or refinancing.

Requirements

To qualify for a Fix and Flip Loan, borrowers generally need:

• Adequate Collateral: The property (or properties) must typically secure at least 160% of the loan amount, based on the after-repair value (ARV).

• Business Entity: Loans are typically issued to an LLC, corporation, or other business structure, not to individuals.

• Experience and Exit Strategy: A clear renovation plan and exit strategy (sale or refinance) are preferred.

• Financial Documentation: Proof of funds, personal financial statements, and project budget details.

Benefits of Fix and Flip Loans

• Fast Approval and Funding: Designed for quick closings to help investors seize time-sensitive opportunities.

• Flexible Credit Requirements: Approval focuses on asset value and project potential rather than strict credit criteria.

• High Leverage Potential: Borrow up to a significant percentage of the property’s purchase and rehab cost.

• Maximized ROI: Ideal for short-term investors seeking to quickly build equity and generate profit through renovation projects.