Fix N Flip Loans
Fix-n-flip loans provide capital for experienced real estate investors to purchase and renovate distressed properties for quick resale at a profit. Investors receive funding to buy and repair properties they don’t currently have capital for.
These short-term loans cover purchase and renovations costs. Terms are usually 6-12 months to resell for repayment. Interest rates are higher than conventional loans due to the risky nature of rehab investing.
Fix-n-flip loans allow investors to take on deals they previously couldn’t while also freeing up capital to pursue additional flips simultaneously. The proceeds from flips repay the loans.
To learn more about how fix-n-flip loans can help your business today, complete our 15-Second Online Application here to speak with a business financing advisor. ROK programs offer 80% to 100% purchase funding and 100% rehab funding.
Tips for Utilizing Fix N Flip Loans
Target properties well below market value that can be resold at minimum 30% profit after renovation costs. Focus on cosmetic upgrades like kitchens and bathrooms versus major structural repairs.
Conservatively estimate renovation costs and timeline. Build in buffers for unforeseen expenses and delays. Limit loan amount to 70% of purchase price or less. Have a buyer or backup buyers lined up.
Only use fix-n-flip loans for properties you can quickly renovate and sell. Don’t take on long-term rehabs better suited to a traditional renovation loan. Manage the flip efficiently.
Benefits of Fix N Flip Loans
The primary benefits of fix-n-flip loans are the ability to take on additional deals without tying up personal capital as well as the faster timeline to get in and out at a profit.
Successful flips generate returns of 25-50% or more in often 6-12 months. A constant churn of flips continually replenishes capital for investing in new properties.
As lenders are repaid quickly at closing with market-beating returns, it establishes a track record to secure larger flip financing amounts for bigger projects.
Fix N Flip Loan Requirements
- 650+ minimum FICO
- 3 past projects showing profitability
- Identified target property and renovation budget
- 3 months most recent bank statements
- No tax returns required
- Certain adverse background history considered
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