Fix and Flip Loans
Turn your next property into profit — with fast, flexible funding for investors and builders.
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Fix and Flip Loans
Fix and flip loans are short term financing used by real estate investors to purchase and renovate a property, then sell for a profit. These loans are designed exclusively for investment properties, not primary residences, and are typically provided by private or non bank lenders. That is the simple version. In practice, I think the best fix and flip financing feels like a working partnership, quick to close, flexible on the scope, and realistic about timelines. Our goal at Grand Financial is to make that partnership feel easy, even when the project gets messy for a minute.
What is a Fix and Flip Loan, in plain terms
A fix and flip loan gives you capital to buy a distressed or undervalued home, fund the rehab, and exit within months by selling the finished product. Approval hinges primarily on the property and its projected after repair value, often called ARV, rather than only your W2s or tax returns. You repay the loan when you sell the property, or you refinance into a long term rental loan if you decide to hold the asset. That flexibility is one reason experienced investors keep coming back, perhaps even when they say they will take a break after the last flip.
How fix and flip loans work
We underwrite to the ARV and to a realistic scope of work. Lenders weigh purchase price, rehab budget, timeline, and resale comps to estimate exit value. Your experience and liquidity still matter, but the property’s potential carries most of the weight. Typical leverage targets include up to 65 to 70 percent of ARV, or up to 85 to 95 percent of total project cost depending on the lender and your track record.
Speedy funding gets you to the closing tableTime kills deals at auction and on-market distressed listings. Private lenders can close in about 5 to 15 days with complete docs and appraisal or desktop valuation in hand. That speed is the point, and yes, it is actually achievable when the file is clean.
Lending limits keep risk sensibleMost lenders cap proceeds using the lower of a few guardrails, for example, percentage of ARV, percentage of purchase price, and percentage of total cost. This keeps the capital stack balanced, so the deal still makes sense if the market wobbles or the rehab runs long. Typical structures look like up to 80 percent LTC and up to 70 to 80 percent ARV.
Draws for rehab costsRehab funds are held back and released in stages through draws. An inspector verifies completed work that matches the scope, then funds are wired. Some lenders allow partial draws, others require 100 percent completion for each budget line, so planning your materials and labor around the draw schedule matters more than it seems on day one.
Short terms, clear exitsTerms usually run 6 to 24 months. Most investors exit by selling. Others refinance into a DSCR or rental loan if the numbers still pencil after rehab. In either case, the clock is part of the business model, which keeps everyone focused, although occasionally you may want a short extension to list at the right moment.
Advantages
Fast funding, often within one to two weeks with a complete file.
Accessible qualification, the asset and ARV matter more than perfect credit.
Flexible terms, private lenders can fund properties that would fail conventional guidelines.
Leverage, keep more of your cash for multiple projects, or for overruns you will probably encounter at least once.
Typical Terms at a Glance
Guidance only — final terms depend on deal profile
| Feature | Typical Range |
|---|---|
| Term Length | Short term, interest only in most programs |
| Leverage | Lower of constraints usually applies |
| Interest Rate | Price reflects speed and project risk |
| Points & Fees | Varies by complexity and timeline |
| Minimum Credit | Lower considered with compensating factors |
| Close Time | Clean file and fast valuation help a lot |
| Rehab Funding | Plan milestones around the draw schedule |
How Grand Financial structures your deal
Discovery call
We review target property, scope, timeline, exit, and your experience. Quick, candid, sometimes a little messy, which is fine.
Term sheet within 24 hours of complete info
Rates and leverage depend on ARV, budget, and risk. We keep it simple, a few clear options rather than noise.
Valuation and underwriting
Appraisal or desktop valuation, comps that make sense, contractor bid review, and proof of liquidity for reserves.
Close and first draw
We fund acquisition and, if applicable, an initial rehab reserve. Draws follow progress with predictable inspections so you can plan crews.
Exit support
Need a rental takeout or a bridge to listing season, we help you map the path.
I have walked properties with investors who discovered an ugly surprise behind plaster. Everyone stays calm, we revisit the scope, then adjust the budget and timeline. Not perfect, realistic.
Comparison, fix and flip vs other options
Use this as orientation, not as a commitment to terms
| Criteria | Fix and flip, hard money | Conventional mortgage | HELOC |
|---|---|---|---|
| Speed to close | When valuation and docs are ready | Full income underwriting required | Depends on lender pipeline |
| Property condition | Scope drives inspection plan | Major issues can block approval | Secured by your home equity |
| Underwriting focus | |||
| Term | Interest only in many programs | Amortizing payments | Draw, repay, draw again |
| Cost of funds | Price reflects speed and flexibility | Tighter guidelines, more documentation | Variable rate risk is possible |
| Best use |
Why investors choose Grand Financial
Speed with discipline, streamlined underwriting, predictable draws.
Straight talk, if a comp is off, we will say so.
National reach, programs for most markets in the United States.
Creative structures, including interest only, cross collateralization, and rental takeouts for holds.
Frequently asked questions
What credit score do I need
Most programs price best at 660 plus. We can review files below that with additional strengths like strong liquidity or proven experience
Can I finance 100 percent of rehab
Often yes, when total leverage stays inside ARV and LTC limits. Expect inspections before each draw.
With a complete file and fast valuation, closings in about 5 to 15 days are common. Auction timelines may require rush protocols.
Often yes, when total leverage stays inside ARV and LTC limits. Expect inspections before each draw.
What are typical rates and fees
Rates are market based and higher than conventional. Origination fees commonly run about 1.5 to 3 percent, sometimes more for complex files.
Can I refinance to hold the property
Yes. Many clients use a DSCR rental loan after rehab when the numbers support it.