How Fix-and-Flip Loans Work: A Real Estate Investor’s Guide to Fast Funding

If you have ever brought a solid fix-and-flip deal to a traditional bank, you know the frustration. The numbers work. The ARV is there. The exit is clean. And the bank still says: we’ll need 24 months of tax returns, 60 days to process, and maybe — just maybe — we’ll have an answer before your seller walks.

That’s not a credit problem. That’s a bank problem. Fix-and-flip loans exist because the traditional mortgage system was never built for investors moving fast on distressed properties.

At Slate Financial, we fund fix-and-flip deals from $75,000 to $5,000,000 — closing in 10 to 15 days, not 60. Here’s everything you need to know about how it works.

What Is a Fix-and-Flip Loan?

A fix-and-flip loan (also called a bridge loan or rehab loan) is short-term financing designed specifically for real estate investors who buy distressed properties, renovate them, and resell for a profit. Unlike traditional mortgages, fix-and-flip loans are underwritten on the deal — the after-repair value (ARV), the scope of work, and the exit strategy — not just your personal income or FICO score.

Typical terms:

• Loan-to-cost (LTC): up to 90% of purchase + rehab
• Loan-to-ARV: typically 65-75%
• Term: 6-18 months (short bridge, not a 30-year mortgage)
• Close timeline: 10-15 business days
• Rate: varies by LTV and borrower profile (funding subject to lender approval)

The BRRRR Method: Why Speed Is Everything

The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) is one of the most powerful wealth-building plays in real estate — but it only works if your rehab financing closes fast enough to capture the deal.

Here’s the math that makes it work:

• Buy distressed property: $120,000
• Rehab budget: $45,000
• Total into the deal: $165,000
• After-repair value (ARV): $245,000
• DSCR refinance (75% ARV): $183,750 pulled out
• Net cash left in deal: near zero

You have built equity, cash flow, and recycled capital — all without grinding money into a dead end. But only if you could close before the seller moved on. A 45-60 day bank timeline kills the deal. A 10-15 day hard-money close captures it.

Ready to see if your deal qualifies? Apply at Slate Financial in 3 minutes.

What Lenders Actually Look At (It Is Not What Your Bank Checks)

Fix-and-flip lenders underwrite the deal, not just the borrower. Here is what matters:

• ARV (After-Repair Value): What the property is worth after rehab. This is the ceiling that determines how much you can borrow.
• Purchase price: The lower you buy relative to ARV, the better your loan terms.
• Scope of work: A detailed rehab budget. Cosmetic flips get higher LTC than gut rehabs.
• Exit strategy: Are you selling or refinancing? Lenders want to see a realistic exit before they fund.
• Experience: First-time flippers can still get funded — but a track record improves terms.

FICO matters less than the deal. We have worked with borrowers in the 600s on strong deals and declined borrowers in the 800s on thin ones. The numbers have to work.

Bad Credit Fix-and-Flip? Not Automatic Disqualification

One of the biggest myths in real estate investing: you need perfect credit to get a fix-and-flip loan. You do not. You need a deal that pencils.

What actually matters: a low LTV so you are not asking for 95% of ARV, a clear exit plan, a realistic rehab budget, and some track record — even one prior flip. A 90% LTC loan on a deal with a 40% equity buffer is fundable. A deal with no exit and a thin margin is not, regardless of your credit score.

Ground-Up Construction Loans: Build Without the Bank

Slate also finances ground-up construction for spec home builders and developers. If you own a lot and have a builder under contract, we can fund the build with draw-schedule financing in Florida, Texas, Georgia, South Carolina, and most other states. No W2 income requirements. No 60-day approvals. Just a fundable deal and a builder ready to go.

How to Apply

The application takes about 3 minutes. Tell us the property address, purchase price, estimated rehab, and ARV. From there, our team matches your deal to the lenders most likely to fund it.

Start your fix-and-flip application at Slate Financial.

Funding is subject to lender approval. Results not typical. Individual loan terms, rates, and eligibility vary based on deal profile, borrower experience, and lender guidelines.

David R. Bizousky, CEO – Slate Financial