Fix and Flip loans are a type of financing that is used when a borrower is able to obtain a property at an unusually low price with the intent of fixing up the property. Then, within a few months the property is sold at a fair market price. Many lenders will not do this type of loan because of the short period of time it will be serviced. This is why Fix and Flip loans are very specific for this situation.

Basically, our financing for Fix and Flip loans can work in 2 different ways:

1. You may borrow 80% of the Purchase Price of the property and 80% of the fix up cost. The loan is typically due within 12 months.
2. You may borrow 70% of the new appraised value (as if home was complete). This loan enables the borrower to come up with just a minimal amount of money however; the interest rate can be higher.

The interest rate on these loans are typically higher than a “regular” loan but that may not be a huge factor because it is for such a short period.

Program Highlights:

• We can use equity from other properties (cross-collateralization) for the down payment on the fix and flip property so that the borrower does not have to put cash into the transaction out of pocket.
• 1-4 units as well as commercial properties.
• We allow the properties to be titled in the name of corporations, partnerships or LLC’s. This is a popular feature with investors.
• We do not have any prepayment penalties and a monthly interest-only payment is all that is required. This is of great importance to fix and flip investors.