Housing Purchase & Rehab (Fix and Flip)

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Have you been thinking about getting into fix and flip real estate? It can be a fun and financially rewarding adventure to purchase a property below market value, rehab it and resell for a profit in a quick manner. Our fix and flip financing programs cover not only the initial purchase cost but also the renovation costs and, with ongoing support from lender-based construction management experts, you will be guided to complete your projects on schedule and on budget.

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About Purchase and Rehab (Fix and Flip) Loans for Housing

The typical purchase and rehab (fix and flip) financing scenario involves a distressed property that requires some degree of renovation work to make it attractive to a potential buyer who intends to use it as a principal residence. The property involved is usually a single-family house, condo, or 2-4 unit property. The loan is short-term in nature to get through the rehab period to the point of sale of the improved housing asset to a happy buyer.


Fix and flip loan terms are typically along the following lines:

  • 12-18 month term to fully cover the purchase/improvement/resale period

  • interest only payments during the loan term without prepayment penalties

  • loan amounts from $75K to $3M

  • expedited closings

  • up to 90-95% LTC and up to 70-75% LTARV (after-rehab value)

  • rehab hard and soft costs, i.e. the renovation budget, are included in the loan with rehab project assistance provided by in-house construction management team

  • no experience necessary but experienced can get non-recourse terms and pay interest only on funds dispersed (as rehab progresses) rather than the total loan amount

It is also possible for a fix and flip buyer to hold the property when renovation concludes as a long-term rental asset. A single loan covering the purchase/rehab period and then the rental term can be obtained at the start of the project. The loan is interest only during the rehab period.

 

Line of Credit for Multiple Purchase and Rehab Projects

For active or perhaps full-time purchase and rehab investors, a line of credit may be a great solution for your real estate financing needs. This structure allows for quick, reliable access to capital with predictable terms designed to handle multiple ongoing fix and flip projects (or even some new construction). The line of credit is usually offered to seasoned investors with fixed rates on a 1-2 year term (with easy renewal options) for amounts above $1M up to $25M. Typically it can be approved in less than two weeks for qualified applicants.

To learn more about the various real estate financing options, please contact us for a free consultation. We're here to listen and help you choose the right financial solution for your real estate investment needs.