Fix and Flip Loans Investment Property
Fix and Flip loans are hard money asset-based financing solutions specifically designed for real estate investors who need quick access to capital for fix and flip projects. Unlike traditional bank loans that focus heavily on borrower creditworthiness and income verification, hard money lenders primarily evaluate the property’s value and the investor’s experience. These loans typically offer funding within 7-14 days, use the property itself as collateral, and provide short-term financing (usually 6-24 months) that aligns perfectly with the fix and flip timeline. Interest rates are higher than conventional loans, typically ranging from 6-13%, but the speed and flexibility make them invaluable for competitive real estate markets where cash offers win deals.
The primary benefits of hard money lending lie in speed, simplicity, and strategic advantage. Investors can close deals quickly without lengthy underwriting processes, allowing them to compete with cash buyers and secure properties before other investors. The application process is streamlined with minimal documentation requirements, and many lenders offer interest-only payments during the renovation phase, preserving cash flow for construction costs. Additionally, experienced hard money lenders often provide valuable market insights and may offer repeat financing for successful investors. This financing tool enables investors to leverage their capital efficiently, taking on multiple projects simultaneously and maximizing their return potential in the lucrative fix and flip market.
Fix and Flip Loan Terms
Interest Rates:
Loan to Cost (LTC):
Construction Financing:
Loan to ARV:
Origination Fees:
Loan Types:
Min Loan Amt:
Max Loan Amt:
Payment Type:
Draw Process:
Property Types:
Prepayment Penalty:
Minimum Fico:
7.50 – 12.00%
Up to 93%
Up to 100%
Up to 75%
1.25 – 2.00%
Purchase Rehabs
$100,000
$5,000,000
Interest Only
Typically 48 Hours
1-4 Units / Condos
None
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