Fix-and-Flip Loans: How Real Estate Investors Close in 10 Days Without a Bank

If you have ever lost a fix-and-flip deal to slow bank financing, you already know the real enemy of real estate investing is not bad deals – it is the clock. Traditional lenders move at their own pace while distressed properties sell in days. Fix-and-flip loans exist to solve exactly that problem.

The Bank Problem: Speed Kills Deals

Conventional bank financing for investment properties takes 45-90 days on a good day. For a distressed property with any complications – deferred maintenance, title issues, seller timeline – that window stretches further. Most distressed deals are under contract with someone else before your bank has finished the intake paperwork.

Banks also underwrite to rigid standards that were never designed for the fix-and-flip model. They want clean credit, two years of business history, and a property in move-in condition. A deal that needs $60K in rehab before it can appraise is essentially unfundable through a conventional lender – the very type of deal that creates the most profit for investors.

What Is a Fix-and-Flip Loan?

A fix-and-flip loan – also called a bridge loan or rehab loan – is a short-term, asset-based loan designed specifically for investors buying, rehabbing, and reselling residential or light commercial properties. The loan funds both the acquisition and the renovation, with draws released as construction milestones are completed.

Key differences from conventional financing:

• Term: 6-18 months (matched to the flip timeline, not a 30-year amortization schedule)
• Underwriting: based on the deal – ARV, purchase price, rehab budget – not primarily on the borrower’s W2 income
• Speed: 10-14 days to close, not 45-90
• LTC: up to 90% loan-to-cost, meaning you bring roughly 10% to the table instead of 20-30%

90% LTC: Fund the Deal, Not Your Credit Score

The single biggest misconception about fix-and-flip funding is that credit score drives the decision. Private lenders underwrite the asset first. If the deal makes sense – strong ARV, conservative rehab estimate, a borrower with a track record or a sound plan – the loan gets funded. Your FICO is a secondary data point, not the gate.

At 90% LTC, a $150K acquisition with a $50K rehab budget (total project cost: $200K) requires roughly $20K from the borrower. The lender covers $180K. If the ARV is $280K, the potential gross profit is $80K on a $20K cash commitment – before holding costs and closing costs. That leverage is exactly what makes fix-and-flip math work for serious investors.

Funding subject to lender approval. Individual deal terms vary based on project specifics, borrower profile, and market conditions.

The Timeline That Actually Closes Deals

Here is what a 10-day close actually looks like when both sides are prepared:

• Day 1-2: Application submitted and property reviewed. Lender evaluates purchase price, ARV comps, and rehab scope.
• Day 3-4: Term sheet issued and signed. Title ordered simultaneously.
• Day 5-7: Appraisal or BPO completed and title work finalized.
• Day 8-9: Loan documents prepared and reviewed by both parties.
• Day 10: Closing. Funds wire. You own the property.

That timeline holds when the borrower comes prepared: signed purchase contract, scope of work, contractor bids or a credible self-GC plan, and ARV supported by recent comps. The deals that slip past 10 days almost always involve missing documentation – not lender pace.

Who Qualifies for Fix-and-Flip Funding?

Eligibility requirements vary by lender, but the general profile for a standard approval includes:

• A signed purchase contract with a realistic deal timeline
• An ARV supported by comparable sales from the last 90 days
• A detailed rehab scope and budget (contractor bids preferred)
• At least 10% cash-to-close from the borrower
• Credit score above 600 (some programs go lower when deal strength compensates)

First-time flippers can qualify on their first deal. Experience matters but is not a hard requirement when the deal math is strong and the borrower has the liquidity to execute and carry the project.

Ground-Up Construction: The Next Step for Serious Builders

If you have completed several fix-and-flips and want to scale into new construction, ground-up construction lending works on the same asset-first model. We work with lenders funding spec home development in Florida, Texas, Georgia, and South Carolina, with draw-schedule financing tied to construction milestones. The margin on a well-executed ground-up build is typically larger than a rehab – and the process is faster than anything a bank will offer. Funding subject to lender approval.

Ready to Fund Your Next Flip?

If you have a deal under contract or are actively sourcing, get pre-qualified before you need it. Knowing your terms in advance lets you make credible offers on distressed properties – the same way cash buyers operate, without tying up your own cash.

Apply at slatefinancial.io/apply/fix-and-flip – the application takes under 3 minutes. Funding is subject to lender approval. If you are not sure which program fits your deal – fix-and-flip, bridge, or ground-up construction – our team reviews every inquiry and responds with the right path.

Stop losing deals to your bank’s timeline. See what your deal qualifies for at Slate Financial.

Need Business Funding?

Slate Financial matches you with the best funding options. Apply in minutes.

Tags