Fix and Flip Loans - Fund Your Next Renovation Project
Short-term bridge loans and rehab financing for real estate investors. Slate Financial connects you with fix and flip lenders who close fast and fund both acquisition and renovation costs.
Understanding Fix and Flip Financing
What Is a Fix and Flip Loan?
A fix and flip loan is a short-term financing product designed specifically for real estate investors who purchase properties that need renovation, improve them, and then sell them at a higher price. These loans are sometimes called rehab loans or bridge loans because they bridge the gap between buying a distressed property and selling it after renovation.
Unlike traditional mortgages that focus on the borrower's income and employment, fix and flip loans are asset-based. Lenders evaluate the deal itself: the purchase price, the renovation budget, the after-repair value (ARV), and the borrower's experience. This makes fix and flip loans accessible to full-time investors, part-time flippers, and entrepreneurs who may not qualify for conventional financing.
Most fix and flip loans cover both the acquisition cost and the renovation budget. The rehab portion is typically held in escrow and released in draws as work is completed and inspected. This structure protects the lender while giving the borrower access to the capital they need to complete the renovation. Slate Financial connects investors with experienced fix and flip lenders across the country who understand the unique needs of renovation projects.
The Process
How Fix and Flip Financing Works
From acquisition to profitable exit, here is how fix and flip loans are structured.
Acquisition Financing
Fix and flip lenders provide capital to purchase distressed or undervalued properties. The loan is based on the property's current value and the after-repair value (ARV), not the borrower's personal income. This allows investors to leverage their capital across multiple projects simultaneously.
Rehab and Renovation Funding
Most fix and flip loans include a rehab budget that is disbursed in draws as renovation work is completed. The lender holds rehab funds in escrow and releases them after inspecting completed work at each stage. This protects both the lender and the borrower throughout the renovation process.
Short-Term Bridge Structure
Fix and flip loans are short-term by design, typically structured for a period of months rather than years. The borrower renovates the property and either sells it for a profit or refinances into a long-term loan. The short-term structure keeps carrying costs manageable during the active renovation phase.
Profit-Driven Exit
The goal of every fix and flip project is a profitable exit. Lenders evaluate the deal based on the expected ARV and the total cost of acquisition plus renovation. Successful investors buy at the right price, manage renovation costs carefully, and sell or refinance within the loan term to capture their profit margin.
Qualification
What Fix and Flip Lenders Look For
Fix and flip lenders evaluate the deal and the investor. Here are the key factors that determine your approval and terms.
After-Repair Value (ARV)
The projected value of the property after all renovations are complete. Lenders use ARV to determine the maximum loan amount and evaluate the deal's profitability.
Purchase Price Relative to ARV
Lenders want to see a sufficient margin between the total project cost (purchase plus rehab) and the ARV. This margin protects the lender if the property needs to be sold quickly.
Detailed Scope of Work
A clear, itemized renovation budget that outlines every planned improvement with associated costs. Lenders review this to ensure the rehab budget is realistic and complete.
Investor Experience
Your track record with previous fix and flip projects matters. More experienced investors often qualify for better terms, higher leverage, and faster approvals. First-time flippers can still qualify but may face different requirements.
Exit Strategy
Lenders want a clear plan for how you will repay the loan. This is typically through a sale of the renovated property or a refinance into a long-term loan. Comparable sales data supporting your ARV strengthens your exit strategy.
Skin in the Game
Most fix and flip lenders require the borrower to bring some capital to the deal. This may cover the down payment, closing costs, or a portion of the rehab budget depending on the lender and the deal structure.
Loan Structure
Typical Fix and Flip Loan Terms
- Loan terms typically range from 6 to 18 months
- Financing available for purchase price, rehab costs, or both
- Draws released as renovation milestones are completed and inspected
- Interest may be structured as monthly payments or rolled into the loan
- Properties can include single-family homes, duplexes, small multifamily, and condos
- Borrowers can hold title through an LLC or personal name
How It Works
How to Apply for a Fix and Flip Loan
Slate Financial makes fix and flip financing simple. Here is how to get started on your next project.
Submit Your Deal
Tell us about the property you want to purchase, the renovation plan, and your experience as an investor. Our application takes just minutes.
Deal Analysis
Our team evaluates the property, your scope of work, the ARV, and the overall deal structure to identify the best lending options for your project.
Lender Matching
We match your deal with fix and flip lenders who specialize in your property type, location, and loan size to get you the most competitive terms.
Fast Closing
Fix and flip loans are designed to close quickly. Once approved, we coordinate the closing process so you can start your renovation as soon as possible.
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FAQ
Frequently Asked Questions About Fix and Flip Loans
Get answers to the most common questions about fix and flip financing, rehab loans, and bridge lending.
Ready to Fund Your Next Flip?
Slate Financial connects you with experienced fix and flip lenders who close fast and fund both purchase and rehab. Apply online or call to discuss your deal.