Fix-and-Flip Loans: How to Fund Your Next Rehab Without a Bank

You found the deal. The numbers work. The ARV is solid, the rehab budget is locked, and you know exactly what needs to be done to force the equity. There is just one problem: your bank will not touch it.

This is not unusual. Banks routinely decline fix-and-flip loans because they cannot lend on distressed properties, require W2 income that most active investors do not have, and take 60-90 days to close — far longer than any competitive real estate deal can survive.

The good news is that there is a better way. At Slate Financial, we connect real estate investors with lenders who actually fund these deals — and we do it fast.

What Is a Fix-and-Flip Loan?

A fix-and-flip loan (often called a bridge loan or hard money loan) is short-term real estate financing designed specifically for investors buying distressed properties to renovate and resell. Unlike a conventional mortgage, a fix-and-flip loan is underwritten on the after-repair value (ARV) of the property and the deal itself — not your tax returns or W2 employment history.

Key terms investors typically see (subject to lender approval and deal specifics):

• Loan-to-cost (LTC) coverage up to 90%
• Loan-to-ARV up to 70-75%
• Close in 10-14 business days
• Interest-only payments during the hold period
• Loan terms from 6-18 months

Why Banks Fail Fix-and-Flip Investors

Banks are built for long-term, owner-occupied lending. Their underwriting models were not designed for:

• Distressed or below-market properties
• Investors who earn income from deal flow rather than W2 employment
• Short hold periods of 6-12 months
• Speed — competitive off-market deals close in days, not months

The result is a structural mismatch. The investors who are best at finding value — the ones who seek out the highest-margin distressed assets — are exactly the borrowers conventional banks are worst at serving.

The Deal Math That Actually Works

Here is how a funded deal might look (fictional example, results not typical, funding subject to lender approval):

• Purchase price: $320,000
• Rehab budget: $70,000
• Total cost: $390,000
• Bridge loan at 90% LTC: $351,000
• Investor cash in: $39,000
• After-repair value (ARV): $510,000
• Net profit at sale (after costs): approximately $75,000-$90,000

The investor brings roughly 10% of the total cost and walks away with a strong profit margin when the deal closes. That math works because a bridge lender is underwriting the deal — not your debt-to-income ratio.

What Private Lenders Look at on a Fix-and-Flip

Private and bridge lenders evaluate fix-and-flip loans differently from banks. Here is what matters:

1. The ARV — is the after-repair value supported by recent comparable sales?
2. The rehab scope — is the budget realistic for the work required?
3. Your exit strategy — are you selling or refinancing into a long-term rental (DSCR) loan?
4. Your experience — have you completed flips before? First-timers can still qualify; terms may vary.
5. The deal margin — does the spread between total cost and ARV provide adequate collateral coverage?

Notice what is NOT on that list: W2 income, debt-to-income ratio, or whether the property is move-in ready. Private lenders are asset-based underwriters. They look at the deal.

Fix-and-Flip Markets We Fund

Slate Financial works with lenders who fund fix-and-flip projects across the country, with particular strength in:

• Florida (Jacksonville, Tampa, Miami, Orlando)
• Texas (Dallas, Houston, San Antonio, Austin)
• Georgia (Atlanta, Savannah)
• South Carolina (Charleston, Columbia)
• And many additional markets — submit your deal and we will match it

How to Apply Through Slate Financial

Our process is built for speed. Apply at slatefinancial.io/apply/fix-and-flip and here is what happens:

1. Submit your deal details in about 3 minutes
2. We match your deal to the right lenders in our network
3. You receive term sheets, often within 24-48 hours
4. Close in as little as 10-14 business days

There is no cost to apply. Our compensation comes from the funding source, not from you.

The bank said no. We work with lenders who fund these deals every week.

Apply now at slatefinancial.io/apply/fix-and-flip. Funding is subject to lender approval and specific property and borrower qualifications.

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