- Fix and Flip Loans -
Fix and Flip Loans: Hard Money Financing, for Investors Who Move Fast
The best fix and flip deals rarely wait around. A distressed property at the right price attracts multiple buyers, and the investors who win those deals consistently are the ones who can close in days rather than weeks. Those who do not need the property to be in perfect condition to get financing.
Fix and flip loans, also called hard money loans for real estate investors, are designed for exactly this reality. They evaluate the deal, not the borrower’s income. They close fast. And for experienced investors, they can cover both the purchase price and the full cost of renovation. At Zeus Real Estate Financing, we connect house flippers, BRRRR investors, and developers with hard money lenders who understand the investment deal structure and move at the pace the market requires.
FIX & FLIP AT A GLANCE
What You're Working With
Real numbers, not sales talk.
100%
Of Purchase Price
100%
Of Renovation Cost
3–18 Mo.
Loan Term Range
15,000+
Funding Partners
What Is Fix and Flip Financing?
Fix and flip financing is short-term investment lending designed to fund the acquisition and renovation of a residential property, with the intent to resell at a profit or refinance into a long-term hold. Unlike a conventional mortgage, which evaluates the borrower’s income and the property’s current livable condition, fix and flip financing evaluates the deal: the purchase price, the scope and cost of renovation, and most critically, the after-repair value, the projected value of the property once the work is complete.
“A lender evaluating an ARV of $250,000 on a property purchased for $120,000 with $60,000 in planned renovation is looking at a deal that makes sense on its own merits.”
That shift in underwriting logic is what makes this financing accessible to investors who would hit a wall at a conventional lender, and makes it fast, since the underwriting is focused on the property rather than a full personal financial review.
Who Fix and Flip Financing Is For
House flippers
Who acquire, renovate, and resell residential properties for profit. Fix and flip financing is the foundational tool of this strategy. It funds the deal at speed and covers the rehab, which are the two things that determine whether a flip gets done at all.
BRRRR investors
Who use the buy-rehab phase of the BRRRR method to create a renovated, stabilized rental, then refinance into a DSCR loan on the back end. Fix and flip financing handles the first two letters of BRRRR — buy and rehab — before the refinance converts the property into a long-term hold.
New construction and light development investors
Who are building or substantially renovating residential properties and need financing that accommodates properties in various stages of construction rather than requiring a completed, livable asset.
Experienced investors moving quickly
In competitive markets who need a lender that can close in days and does not require the property to meet conventional condition standards. In many markets, the ability to close fast is worth more than a lower interest rate.
Problems This Financing Solves
Missing deals because conventional financing is too slow:
A 30- to 45-day conventional closing does not work in competitive investment markets. Sellers of distressed properties often prefer cash or near-cash buyers who can close on their timeline. Hard money financing bridges that gap.
Properties that conventional lenders will not touch:
A house with a damaged roof, outdated electrical systems, missing fixtures, or significant deferred maintenance does not meet conventional lending standards. This is partly why it is priced below market and creates the opportunity in the first place. Hard money lenders evaluate the asset and the ARV, not the current condition.
Insufficient personal capital to cover both purchase and renovation:
Even investors with capital prefer to preserve liquidity and maximize leverage on a good deal. Fix and flip financing covers both costs in qualifying deals, allowing investors to do more deals simultaneously rather than tying up all their capital in a single project.
Limited access to rehab capital:
Renovation budgets are funded through a construction holdback account, released in draws as milestones are completed. This structure ensures capital is available throughout the project without requiring the investor to front the entire renovation cost personally.
Benefits of Fix and Flip Financing
Speed
Hard money lenders underwrite the deal, not a full personal financial history. That focused underwriting process means closings that take days, not months. In competitive acquisition situations, speed is the decisive advantage.
ARV-Based Lending
The loan is sized based on what the property will be worth after renovation, not what it is worth today. This structure allows investors to access more capital on a good deal than a current-value appraisal would support.
Coverage of Both Purchase and Renovation
For experienced investors with a strong track record, our network can offer financing covering up to 100% of the purchase price and up to 100% of the renovation cost in qualifying deals, depending on the specific lender and how the deal is structured.
Flexible Credit Requirements
Because underwriting is primarily deal-focused, credit requirements are considerably more flexible than conventional financing. The property and the exit strategy carry most of the weight.
Short-Term Structure Fits the Investment Timeline
Fix and flip loans are designed as short-term instruments, typically three to eighteen months, with twelve months being most common. The loan is retired at sale or refinance, not carried as a long-term liability.
Key Terms Every Fix and Flip Investor Needs to Know
If you are newer to fix and flip financing, these are the terms that will come up in every lender conversation. Worth knowing before you get on a call.
ARV After Repair Value
What the property is expected to sell for once the renovation is complete. This number is not pulled from thin air. It comes from a licensed appraiser who reviews the current property, alongside your scope of work and comparable sales in the area. ARV is the single most important number in a hard money deal because it determines how much a lender will advance.
LTC Loan-to-Cost
How much of the total project cost the lender is willing to cover. If your purchase price is $120,000 and your renovation budget is $60,000, the total project cost is $180,000. An 85% LTC means the lender covers $153,000. The rest comes from you.
LTV Loan-to-Value
Similar to LTC, but measured against the property's value rather than its cost. On fix and flip deals, lenders typically calculate LTV against ARV rather than the as-is value, which allows them to lend on a property that is currently below market.
Construction Holdback
The renovation portion of the loan does not get handed over at closing. It sits in a separate escrow account and gets released in stages called draws, as portions of the renovation are completed and verified. You finish the kitchen, the lender confirms it, you get reimbursed, and move to the next item.
Exit Strategy
How you plan to repay the loan when it matures. For most flippers, that is a sale at or near the ARV. For BRRRR investors who plan to hold the property, it is a refinance into a DSCR loan once the property is stabilized and tenanted. Lenders take exit strategy seriously; a credible, specific one is not optional.
Rehab Budget
A line-item breakdown of every planned renovation and its estimated cost. The lender uses this alongside the ARV appraisal to confirm the scope of work is realistic and to structure the construction holdback accordingly. The more detailed and accurate your rehab budget, the smoother the draw process goes.
Qualification Requirements
Fix and flip financing is more accessible than a conventional mortgage, but lenders still want to see a deal that makes sense and a borrower who can execute it. Here is what our network generally looks at:
Investor Experience
Matters more here than almost anywhere else in real estate lending. Someone who has completed five flips is going to see better terms, higher LTC, and more leverage than someone doing their first deal, and in qualifying cases, experienced investors can access financing that covers the full purchase price and the full renovation budget. If you are newer to flipping, that does not disqualify you, but the structure of what is available will reflect your track record.
Credit
Is a factor, though the bar is lower than conventional financing. Because the deal carries most of the underwriting weight, lenders have more flexibility on credit than a bank would. It still affects your rate and maximum leverage, so it is not irrelevant, just weighted differently.
ARV Appraisal
Is non-negotiable. Before any loan is structured, an independent appraiser reviews the property and your scope of work together and arrives at an after-repair value. That number is what the loan is built around. No appraisal, no deal structure.
Rehab Scope of Work
Is what feeds into the appraisal and sets the construction holdback amount. Lenders want to see the full plan of what is being done, in what order, and at what cost. The more detailed and realistic your scope, the smoother the draw process goes once you are in renovation.
Exit Strategy
Needs to be specific and credible. Are you selling? At what price relative to ARV? Are you holding and refinancing into a DSCR loan? Lenders are not looking for a complicated answer; they just need to see that you have a real plan for paying them back before the loan matures.
Property Type
Determines which lenders in our network are the right fit. Single-family and small multi-family properties cover the majority of what we see, though eligibility for other property types varies by lender, and our team will tell you quickly whether your specific deal fits.
How the Process Works
Deal submission:
You bring us the property, address, purchase price, planned renovation budget, and target ARV. We run the numbers to confirm the deal structure makes sense before anything else happens.
ARV appraisal:
An appraiser reviews both the property in its current condition and your scope of work, then issues an ARV opinion. This is the foundation of the loan structure.
Loan structuring:
Based on the ARV, purchase price, and renovation budget, we structure the purchase financing and construction holdback, matching the deal to lenders in our network who handle that specific deal type.
Closing:
Once the loan is approved, it closes. Many deals can close within five to fourteen business days from the submission of a complete file.
Construction draws:
As renovation milestones are completed, you submit for draws from the holdback account. The lender verifies completion before releasing each draw.
Sale or refinance:
At completion, you sell the renovated property for a profit or refinance into a DSCR loan if you choose to hold it as a rental.
“Thomas Moore, the founder of Zeus Real Estate Financing, is an active real estate investor who uses fix and flip financing on his own deals. When you are walking through scope of work, draw schedules, and ARV calculations with our team, you are not talking to someone reading from a script.”
You are talking to someone who has managed those same moving parts on real properties. Fund your next flip. Apply for fix and flip financing or speak with our team about your current deal.
Frequently Asked Questions
What is the difference between a fix and flip loan and a hard money loan?
These terms are used interchangeably in most investor contexts. Both refer to short-term, asset-based financing secured by the property, evaluated on deal metrics rather than borrower income, and designed for investment rather than owner-occupancy.
How much of the renovation cost will a lender cover?
For experienced investors with a documented track record, our network can offer financing covering up to 100% of the renovation budget in qualifying deals, alongside up to 100% of the purchase price. The specific terms depend on the lender, the deal, and the investor’s history.
How quickly can a fix and flip loan close?
Many deals in our network close within five to fourteen business days from a complete file submission, though timelines vary based on the lender and the complexity of the deal.
What credit score do I need?
Fix and flip financing has more flexible credit requirements than conventional lending, since the primary underwriting focus is the deal and the ARV. Specific minimums vary by lender. Our team will give you a realistic read on your profile before you apply.
What is ARV and why does it matter?
ARV — After Repair Value — is the projected market value of the property once all planned renovations are complete. It is the number that drives how much a hard money lender will advance on a deal. A strong ARV relative to purchase price and rehab cost is the most important factor in a fix and flip deal structure.
Can a first-time flipper qualify?
Newer investors typically have access to more conservative loan structures than experienced flippers, lower LTC, more conservative ARV assumptions, and potentially more documentation requirements. Our team works with investors at all experience levels and will walk you through what is realistic for your first deal.
What happens if the renovation takes longer than expected?
Most fix and flip loans allow for extensions if the project runs long, often for a fee. This is something we discuss with every investor upfront so there are no surprises if the timeline shifts.
Can I convert a fix and flip into a long-term rental?
Yes. This is a common outcome when the sales market does not produce the expected return. Once the property is renovated and stabilized with a tenant, a DSCR loan can refinance the hard money out into a 30-year mortgage based on the new appraised value and rental income.