A fix and flip is typically funded with a short-term purchase-plus-rehab loan — often called a hard money or bridge loan — that covers both the acquisition and the renovation in a single closing. Terms generally run 6–18 months, interest is charged on the outstanding balance, and the exit is either a resale or a refinance into long-term rental financing. We place these through investor lending partners and also size the permanent loan you roll into at the end.

Most investor programs cap total loan-to-cost — purchase price plus construction budget — somewhere in the 85–90% range, and cap the loan at roughly 70–75% of the after-repair value. Your real numbers depend on the submarket, the scope of work, your experience, and the lender's view of the ARV. Run the project through the calculators above and bring the numbers to a short call — we will tell you what a lender will realistically do on that specific deal.

The construction budget is funded in draws, not upfront. A first draw is usually released at closing; later draws are requested at completed milestones and released after a progress inspection, typically within a few business days. Most budgets carry a contingency line, and unused contingency is credited back at payoff. Budget your cash flow so you can float a few days between inspection and funding.

Not always — but it changes the terms. Many investor programs will lend to a first-time flipper with strong credit, documented liquidity, and a clean, well-scoped project, usually at lower leverage or a higher rate. Two or more completed projects typically improves both pricing and loan-to-cost. On a first deal, an experienced general contractor and verifiable reserves materially strengthen the file.

With an executed purchase and sale agreement, a scope of work and budget, your entity documents, and proof of funds, investor closings commonly run 10–21 days — fast enough to compete with cash on a stalled, estate, or probate property. The appraisal and the contractor's bid are the two items that set the timeline, so having both ready before you write the offer is the single biggest speed advantage.

Expect origination points in the low single digits, a rate well above conventional financing, and third-party costs for appraisal, progress inspections, title, and legal. Because you also carry taxes, insurance, and utilities through the project, the true cost of a flip is the carry — not just the note rate. We build a full cost sheet for your deal so points, interest, and carry sit side by side with your projected spread before you commit.

Most investor programs expect title in an entity. Vesting in an LLC keeps the asset and the liability off your personal balance sheet and makes partnering cleaner. Expect a personal guaranty from the operating members, and keep the operating agreement, EIN, and formation documents current — a mid-project entity change is the most common avoidable delay we see.

Both exits work, and the financing should be chosen with the exit in mind. Selling: the bridge loan pays off at closing, with no prepayment friction on most programs. Holding as a rental: we refinance into long-term or DSCR financing based on appraised value and market rent, and we will tell you upfront what rent the deal needs to support the loan. Seasoning and title requirements vary by program, so map the exit before you close the purchase.