Fix & Flip Loans

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Real estate investors use fix-and-flip loans in the short-term to purchase and improve a property to then sell for a profit. Fix-and-flip loans can be used for projects ranging from minor renovations to a complete reconstruction of an existing home. 

In a fix-and-flip project, the property is often purchased at auction. A buyer may later sell the property “as-is” or may choose to add value by improving on the property before selling it. 

There are several different fix-and-flip projects:

• Purchase: A borrower has the opportunity to purchase a property from a distressed seller at a deep discount and put it back on the market with some minor renovations.
• Renovation: A borrower has the opportunity to purchase an old single-family house, for example, and renovate it to make it more appealing before quickly putting it on the market to sell. Renovations can include installing new kitchen cabinetry, replacing floor tiles, putting in hardwood floors, painting the house inside and out, and furnishing it with new appliances.
• Construction: A borrower has the opportunity to purchase vacant land with a dilapidated single-family house on it, demolish it and replace it with a 2-unit residential house, with the intent to sell it.