Fix and Flip Loans
We connect real estate investors with fix and flip financing through our network of hard money lenders. Up to 90% of purchase and 100% of renovation costs. Term sheets in 24 to 48 hours. Closings in as few as 7 business days.
Loan Parameters
Fix and flip at a glance
Programs vary by capital source. Final terms disclosed at offer.
What are fix and flip loans?
A fix and flip loan is a short-term real estate loan designed for investors who buy distressed investment properties, renovate them and sell for a profit. Unlike a conventional mortgage that funds owner-occupied homes based on personal income, a fix and flip loan is an asset-based financing tool. The lender evaluates the deal on two numbers: the purchase price and the after-repair value. The loan amount is sized as a percentage of both.
Fix and flip loans fall within the hard money lending category. They carry shorter terms of 6 to 24 months, higher interest rates than conventional financing, and faster closings because underwriting focuses on the property rather than your W-2 or tax returns. For a real estate investor who needs speed and flexibility, fix and flip financing is the go-to capital source for acquiring and renovating investment properties.
Buckle Up Capital is a broker, not a lender. We connect investors with fix and flip financing through our network of hard money lenders and private capital sources. We do not lend directly. Our role is to structure the deal, match it to the right capital source and manage the process so you can focus on the renovation and the flip. You can also find hard money lenders by state in our lender directory.
How fix and flip financing works
Fix and flip financing is structured in two parts: the purchase loan and the renovation draw facility. The purchase portion funds the acquisition. The renovation facility funds the rehab in staged draws as work is completed and verified by inspection.
The most important concept is the after-repair value, or ARV. This is the projected market value of the property after all renovations are complete. Lenders cap the total loan amount at a percentage of ARV, most commonly 70% to 75%. So on a property with a $400,000 ARV, the maximum loan including both purchase and renovation funding would be $280,000 to $300,000. Your purchase price and rehab budget must both fit under that ceiling.
Loan-to-cost (LTC) is the second key ratio. LTC measures the loan amount as a percentage of your total project cost (purchase plus renovation). Many capital sources in our network fund up to 90% of purchase price and 100% of renovation costs for experienced investors, as long as the total stays within the ARV limit. This means a flipper with a strong deal and a proven track record can often get into a project with only 10% of the purchase price out of pocket.
Purchase LTC
Up to 90% of the purchase price for experienced investors.
Renovation Funding
Up to 100% of approved rehab costs in staged draws.
ARV Cap
Total loan capped at 70% to 75% of after-repair value.
Appraisal
An independent appraisal or BPO establishes the ARV at close.
Draw Schedule
Renovation funds released in stages tied to inspected milestones.
Interest Accrual
Interest accrues only on drawn funds, not the full commitment.
Prepayment
Most programs allow payoff at sale with no prepayment penalty.
Exit
Sell at a profit or refinance into DSCR or a conventional loan.
Fix and flip loan rates and terms
Fix and flip loan rates typically start around 9.99% and range up to 13% or higher depending on the deal and borrower profile. Rates are higher than conventional financing because fix and flip loans are short-term, higher-risk bridge financing on properties that often cannot be appraised at traditional market value in their current distressed condition.
Interest is usually charged on drawn funds only. If your renovation draw facility is $80,000 but you have only pulled $40,000 in month two, you pay interest on the $40,000, not the full $80,000 commitment. This keeps carrying costs lower during the early stages of a renovation.
Loan terms run 6 to 24 months. Most fix and flip investors target a 6 to 12-month hold: buy, renovate, sell. Lenders price the rate based on your credit score, experience level, the loan-to-value ratio and the quality of the deal itself. A flipper with five completed deals, a 720 credit score and a 65% ARV will price substantially better than a first-time flipper at 80% ARV with a 620 score.
Rate Factors
What moves your rate
Rates are indicative and subject to market conditions. Final rate disclosed at term sheet.
Requirements to qualify
Fix and flip loans are asset-based, which means your personal income and tax returns are not the primary qualification factor. The deal itself carries more weight than your employment status. That said, there are clear baseline requirements every investor needs to meet.
The most important is the credit score floor. A 620 is the minimum for most programs in our network. Your experience level matters too: first-time flippers are welcome, but experienced investors with a documented track record access higher loan-to-cost programs, better rates and more flexible terms. Bring a list of completed fix and flips with close dates and profit margins and you will price better every time.
Credit Score
620 minimum. Rates improve significantly above 680 and 720.
Down Payment
10% to 20% of purchase price depending on experience and credit.
Experience
First flip accepted. More flips closed means better terms and lower rates.
Property Condition
Distressed, vacant and non-livable properties are acceptable.
Exit Strategy
Sell (flip) or refinance into DSCR or conventional loan.
Appraisal or BPO
After-repair value must be supported by a third-party opinion.
Reserves
3 to 6 months of payments is preferred but not always required.
Entity
LLC or corporation strongly preferred by most capital sources.
Fix and flip loans vs bridge loans and lines of credit
A bridge loan and a fix and flip loan are closely related products but serve different situations. A bridge loan is a short-term loan that bridges the gap between two longer-term financing events, commonly used to purchase a new property before selling an existing one. A fix and flip loan is a bridge loan with a renovation draw facility built in. Every fix and flip loan is technically a bridge loan but not every bridge loan includes a rehab component.
A line of credit gives experienced investors a revolving capital facility they can draw from deal to deal without reapplying each time. A dedicated fix and flip line of credit is typically available to investors who have completed three or more flips and can demonstrate consistent execution. The advantage is speed and lower transaction costs per deal. The limitation is that lines of credit require a more established track record to access.
For a first-time or early-stage flipper, a standard fix and flip loan on a deal-by-deal basis is the right starting point. For an investor doing three to ten flips per year, a line of credit structured through our capital sources becomes the more efficient vehicle. We help investors determine which product matches their current volume and experience level. For a detailed side-by-side on hard money options, see our hard money bridge loans page.
The fix and flip funding process
Submit the property address, your target purchase price, the estimated renovation budget and your projected after-repair value. Takes about five minutes and requires no credit pull.
We review the deal, calculate the ARV and LTC, then match the file to capital sources in our network that fit the project type and borrower profile. You receive a term sheet within 24 to 48 hours.
Accept the term sheet and move into underwriting. We coordinate the appraisal or broker price opinion, manage lender communication and clear conditions on your behalf.
Close in 7 to 14 business days. Funds are wired to escrow for the purchase. Renovation draws are released in stages as each phase of work is completed and inspected.
Sell the property and repay the loan. Rinse and repeat. Experienced investors often recycle into a line of credit after three or more completed flips.
The biggest time savings come from submitting a complete file on day one. Investors who have their purchase contract, a detailed scope of work with contractor bids, a comparable sales analysis supporting their ARV and their entity documents ready at submission routinely close in the lower end of the 7 to 14 day window. Incomplete files that trickle in conditions over a week cause delays that push closings past the contract deadline.
After your first fix and flip loan closes and performs, we work with you to build the track record documentation that opens access to better rates and higher loan-to-cost programs on your next deal. The goal is to move you from a deal-by-deal borrower to a repeat investor with a dedicated capital relationship.
Fix and flip financing for every investor
First-time flippers
New to fix and flips? We connect investors with capital sources that offer mentorship-friendly programs. Expect a slightly larger down payment and a shorter loan term on your first deal, with better terms available as you build a track record.
Experienced investors scaling volume
An experienced investor with multiple closed flips can access higher loan amounts, lower rates and portfolio lines of credit that fund multiple fix and flip projects simultaneously without reapplying each time.
Distressed property acquisitions
Foreclosures, auction buys and off-market deals often require fast closings. Fix and flip financing through our network can close in as few as seven business days, giving you a real competitive edge at the courthouse steps.
Heavy rehab and gut renovations
Full gut renovations require access to renovation draws, not just a purchase loan. Our capital sources fund 100% of approved renovation costs in staged draws tied to construction milestones, so you never carry out-of-pocket rehab costs longer than necessary.
Run your numbers first
Before you submit a deal, run the numbers. A profitable flip starts with a realistic ARV and a conservative renovation budget. The 70% rule is a common starting point for fix and flip investors: your maximum purchase price should be no more than 70% of the ARV minus your estimated renovation costs. If ARV is $300,000 and rehab is $50,000, the 70% rule puts your max purchase at $160,000.
Our hard money loan calculator lets you plug in the purchase price, renovation budget, ARV and loan parameters to see your projected loan amount, monthly interest cost and profit margin at sale. Run multiple scenarios before you make an offer. Investors who model the deal before submitting a contract make faster decisions and win more deals.
Fix and flip loan questions
All loans facilitated by Buckle Up Capital are for business and commercial purpose only. Buckle Up Capital is a broker, not a lender. Loans are placed with lenders in our network. Rates and terms vary by capital source and are not a commitment to lend.
Ready to fund your next flip?
Submit your deal and we will run it through our network of hard money lenders. No credit pull. No commitment. Term sheet in 24 to 48 hours.