What is a Fix & Flip Loan?

A Fix & Flip Loan is short-term financing specifically designed for investors who purchase properties, renovate them, and quickly sell ("flip") for profit. This type of financing is ideal because it's flexible, fast, and based primarily on the property's value and potential profit—not just your personal credit.

Typical Costs and Fees:

• Loan-to-Cost (LTC): Typically covers up to 85-90% of your purchase price and 100% of your rehab budget.

• Interest Rates: Usually range from 8% to 12%, depending on market conditions and your experience.

• Origination Fees (Points): Typically 1-3% of your loan amount.

• Closing Costs: Generally about 2%-5% of the loan amount.

• Holding Costs: Monthly expenses such as property taxes, insurance, utilities, and loan interest.

• Selling Costs: Real estate agent commissions, title fees, and closing costs (usually around 7-8% of your sale price).

Our team at FlipSmart Loans understands flipping firsthand—our expertise means we'll help you navigate these costs clearly and confidently.