WHAT IS A FIX & FLIP LOAN

Fix and flip loans are a type of financing for investors who purchase properties to renovate them and resell them quickly. These short-term loans offer access to funds that can cover the cost of repairing and improving real estate investments before selling the property.

Interest rates for fix and flip loans are typically higher than conventional mortgage rates and repayment terms are often shorter. Still, this form of financing can benefit investors trying to make a profit flipping homes.

To qualify for a fix and flip loan, you’ll need a good credit score, a solid business plan and a property that can be improved and sold for a higher price. The amount borrowed typically depends on the property’s after-repair value (ARV).

Unlike other types of loans, fix and flip loans are designed specifically for short-term investments and are typically meant to be paid within 12 to 18 months. This translates into higher monthly payments, so make sure you have enough cash to cover repayment.

Some fix and flip loans have interest-only payments before the loan is due, making it easier to manage borrowing costs before flipping the property. Then, once the renovations and repairs are complete, you can sell the property to pay off the fix and flip loan balance.

Fix and flip loans are best for experienced real estate investors who know how to identify target properties, understand the costs of renovating properties and can sell the updated properties quickly.

IF YOU WOULD LIKE TO LEARN MORE ABOUT OUR FIX & FLIP PROGRAMS OR IF YOU WOULD LIKE TO LEARN 

HOW TO FIX & FLIP HOMES FOR PROFIT, JUST GIVE US A CALL AT 714-507-6318

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