A Fix & Flip Loan is a short-term real estate loan designed for investors who buy distressed or undervalued properties, renovate them, and sell them for a profit within a few months. These loans are based on the property’s value and after-repair potential, not your income.
What Is a Fix & Flip Loan?
It's an asset-based loan used to:
Purchase an investment property
Finance renovations (optional rehab funds included)
Sell the property for profit (usually within 6–12 months)
Find & lock up a deal (under contract)
Submit your budget (scope of work)
Get funding for purchase + rehab
Renovate & improve the property
Sell the property and pay off the loa
Process Overview:
House flippers
BRRRR investors (Buy, Rehab, Rent, Refinance, Repeat)
Investors needing fast, flexible funding
Those who don’t qualify for traditional loans
Ideal for:
Purchase Price: $150,000
Rehab Budget: $50,000
After Repair Value (ARV): $275,000
Loan: Up to 90% of purchase + 100% of rehab = $185,000
Example
Investor contributes $15,000 + closing costs. After selling for $275,000, they profit (minus loan payoff, fees, and holding costs).