Fix & Flip Loans

Short-term financing built for the deal, not your tax return. The loan sizes against the after-repair value, covers the purchase and most of the rehab, and pays out in draws as the work gets done. Interest-only while you hold it.

Apply for a Flip Loan Call or Text (248) 925‑0539

How Fix & Flip Loans Work

A fix and flip loan is short-term, asset-based financing for a value-add project. Instead of qualifying on your personal income, the lender underwrites the deal: the purchase price, your renovation budget, and the after-repair value, or ARV, that the finished property should command.

The loan is sized against that ARV, which is what lets it cover both the acquisition and a large share of the rehab. The renovation money is not handed to you at closing, though. It is set aside and released in draws as each phase of work is completed and inspected. You carry the cost of a phase, then get reimbursed, then move to the next.

You pay interest-only during the hold, which keeps the monthly carry low while the property produces no income. When the work is finished you exit: sell the property, or refinance into longer-term debt if you have decided to keep it as a rental.

Fix & Flip Highlights

Qualify on the deal, not personal income
Loan sized against after-repair value
Covers purchase plus much of the rehab
Interest-only during the hold
Rehab funds released in draws
Fast closings to compete with cash
Close in an LLC or entity
Business purpose, available in most states

What to Plan For

The two things that trip up new flippers are both about cash flow and timing, not about getting approved. First, the draw structure means you need working capital. You front the money for each phase of work and get reimbursed after inspection, so a project with no cushion between draws can stall halfway through a kitchen.

Second, this is short-term money priced for speed. It is not a loan to sit in. The interest rate reflects the convenience and the risk, and every month you hold past your plan eats into the margin. Line up your exit, whether that is a sale or a refinance, before you close, not after the drywall is up. Get those two right and the financing becomes the easy part of the project.

Fix & Flip FAQ

What is ARV and why does it matter?

ARV is the after-repair value, what the property will be worth once the renovation is done. Fix and flip lenders size the loan against ARV rather than the current as-is price, which is how the loan can cover both the purchase and much of the rehab budget. Run the flip numbers to see how it pencils.

How do rehab draws work?

The renovation money is not handed over at closing. It is released in stages as work is completed and inspected. You pay for each phase, then get reimbursed, so you need working capital to carry the project between draws. Budget for that gap up front.

Do I need experience to get a fix and flip loan?

Experience helps and can improve your terms, but first-time flippers can still get financed. Lenders look at the deal, your credit, your liquidity, and your exit plan together. A strong deal with real reserves can carry a lighter track record.

What happens when the flip is done?

You exit the short-term loan, either by selling the property or by refinancing into longer-term financing if you decide to keep it as a rental. If you keep it, a DSCR loan is the usual longer-term takeout. Lining up that exit before you start is the single most important part of the plan.

Can I get one of these loans outside California?

Yes. Fix and flip loans are business purpose loans, so I can originate them in most states nationwide, not only the states where I am licensed for primary residence lending. Call me with the deal and the state and I will tell you what is possible.

Fix & Flip Loans

How Fix & Flip Loans Work

Fix & Flip Highlights

What to Plan For

Fix & Flip FAQ

Price Your Next Flip