Fix and Flip Hard Money Loans
Add value to a property using our loan to purchase and renovate an existing property with the ability to close quickly.
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Fix & Flip Lending
The fix and flip program can help provide you with fast, easy, and reliable funding on your light to heavy renovation projects. Our program works whether you are a new or experienced investor. We work with you throughout each step of the process from analyzing your deal to the time you pay off your loan and everything in between from underwriting, funding, servicing, and managing the construction with you and your team.
Fix and Flip
Fix & Flip Program Details
Rates Starting at 9.49%
How Interest is Charged:
Interest Charged As Drawn
Single Family and 2-4 Unit Multifamily
No Tax Returns Required
Credit Score (FICO):
Minimum FICO of 650
Max Loan to ARV:
Up to 70% LTV (75% on Case-by-Case Basis)
No Prior Experience Required
12 Month Term w/ No Prepayment Penalty
Frequently Asked Questions
1. What is a Fix and Flip Loan?
A fix and flip loan is a short term mortgage for you to purchase and renovate your property. The fix and flip loan provides the capital to acquire the property and also complete the repairs to help improve the property value. If the project was bought well and the numbers from the rehab budget and ARV were accurate once you are ready to put it back on the market and sell it at a higher price there should be enough money to pay off your mortgage, all of your costs incurred during the project, and should leave for a nice profit left after all expenses have been repaid.
2. What if I want to keep the property instead of flipping the property?
Once the property has been renovated and work is complete if you determine that the best course of action is to hold onto the property and not sell it keeping it as a long term cashflow and appreciation strategy you can refinance out of the fix and flip loan and get a long-term loan through traditional or private lenders.
3. How does your draw process work for the construction budget?
As work is completed in your fix and flip and you are ready to draw from your construction line of credit you simply complete our draw request that outlines the items of the initial budget that was approved prior to closing that you are looking to get reimbursed for. Once the request has been submitted and processed a draw inspection would be ordered and scheduled between the inspector and investor to verify the work that was submitted for reimbursement was completed. Once the inspection report is received, reviewed, and approved you would be notified and the money would be wired via ACH to your bank account that provided and on file. For a fix and flip loan the investor can use as many or as little draws as needed during the project and based on the cashflow of the investor.
4. What type of value-add strategies could I utilize with a Fix and Flip loan?
There are many different strategies that can be executed with the fix and flip program. With each investment property and scenario being unique the strategy deployed will be dependent on the overall exit strategy of the investor on that given deal and sometimes multiple exit strategies can apply. Some investors will do very minimal work and put the property back on the market with little to no risk from construction and look to make a quick profit from the trade. Other properties may benefit from force appreciation and adding square footage whether vertical or horizontal can quickly increase the value of the home. Each project will depend on the investor’s preference and also evaluating the condition of the property along with an understanding on that local market.
5. If I am a new investor with no prior experience, can I still qualify for the Fix and Flip program?
a. A new investor can obtain financing with our fix and flip program. With the lack of experience as a beginning investor the loan-to-cost would be lower until more round-trip deals have been completed. It is always encouraged that a new investor has a good team surrounding them. Alpha Funding is very welcoming to new investors when getting into fix and flips and real estate investing. One of the more rewarding parts of lending is being a part of the journey watching new investors complete their first few deals and grow into repeat borrowers growing and scaling their businesses.