Securing the necessary “hard money” funding to buy and fix a property can be easy or hard, depending on how prepared you are with the paperwork your lender will need to process the loan fast.

When Do YOU Need a Fix and Flip Loan?

A fix and flip loan is a short-term loan is designed to fund both the acquisition and renovation of a property intended for resale at a profit, or as the first step in a buy-and-hold strategy, if you need the money to fix the property before refinancing it into a long-term loan.  

Unlike traditional loans that focus on the current value, a fix and flip loan assesses the property's potential value post-renovation, taking into account the planned renovation work to be done.

The loan typically includes the cost of buying the property and at least some of the estimated repair expenses, which makes these loans appealing for the RE investor doing rehab projects.

It’s a fast-closing, short-term loan with lower down payments and interest-only payments during the term (6-12 months). It’s meant to be used quickly and effectively to finish a project for profitable sale or refinance.

But to actually GET such a loan, you need to present specific documents to your lender, which demonstrate your ability to qualify for the project and manage it successfully. Here’s what you’ll need to be ready with to make sure that your loan has the best chance of being approved and closing on time:

The Application Stage

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