Fix & Flip Loans
Fast, flexible capital for acquiring and renovating residential properties for resale.
Speed and Leverage for Value-Add Investors
The best flip opportunities don't wait for traditional financing. When you find a property with upside, you need capital that moves as fast as you do—funding both the purchase and renovation in a single loan with minimal friction.
Fix & flip loans are short-term, asset-based financing designed specifically for residential investors who buy, renovate, and sell properties for profit. Unlike conventional mortgages, these loans are underwritten primarily on the property's after-repair value (ARV) and your renovation plan—not your personal income.
Brookmont Capital Ventures connects fix & flip investors with experienced lenders who understand the business, offering competitive leverage, fast closings, and draw structures that keep your projects moving.
When to Use Fix & Flip Financing
Distressed Property Acquisitions
Purchase bank-owned, foreclosure, estate sale, or off-market properties that need work before they can be sold at market value.
Full Renovations
Finance gut rehabs, structural repairs, and complete property transformations where the scope exceeds what conventional lenders will touch.
Light Value-Add Projects
Cosmetic updates—kitchens, baths, flooring, paint—that quickly increase market value and allow for a fast turnaround.
Auction and Competitive Purchases
Move quickly on auction properties or competitive situations where proof of funds and fast closing timelines win deals.
Typical Fix & Flip Loan Terms
| Parameter | Typical Range |
|---|---|
| Loan Amount | $75K – $3M+ |
| Loan-to-Cost (LTC) | Up to 90% |
| Loan-to-ARV | Up to 70-75% |
| Term | 6-18 months |
| Interest Rate | 9-13% |
| Origination Fee | 1-3 points |
| Amortization | Interest-only |
| Draw Structure | Renovation funds released in draws |
| Prepayment | Typically no penalty or minimal penalty |
*Terms vary based on property, borrower experience, and market conditions.
How Fix & Flip Loans Work
Purchase + Renovation in One Loan
Unlike conventional financing, fix & flip loans combine acquisition and renovation capital in a single facility. You close on the property with purchase funds, then draw renovation dollars as work progresses.
Asset-Based Underwriting
Lenders focus on the deal—purchase price, renovation budget, and after-repair value—rather than your W-2 income or tax returns. Your track record and the project's economics drive approval.
Draw Process
Renovation funds are held in reserve and released through a draw process:
- Complete a phase of work (demo, rough-in, finishes, etc.)
- Request a draw from the lender
- Lender inspects progress (often via photos or third-party)
- Funds are released for the completed work
This protects both you and the lender by ensuring capital is deployed as value is created.
Exit Strategy
Fix & flip loans are designed to be repaid through property sale. Your exit is selling the renovated property to an end buyer. If plans change, you can also refinance into a DSCR loan and hold the property as a rental.
Property Types
Fix & flip financing is available for most residential property types:
- Single-Family Homes – Houses, detached residences
- Townhomes – Attached fee-simple properties
- Condos – Individual units (lender restrictions may apply)
- Duplexes / Triplexes / Fourplexes – 2-4 unit residential
- Small Multifamily – Some lenders extend to 5-8 units
Properties should be non-owner occupied and purchased for investment purposes.
What Lenders Evaluate
Fix & flip lenders assess both the deal and the borrower:
The Deal
- Purchase price relative to market value
- Renovation budget with detailed scope of work
- After-repair value (ARV) supported by comps
- Timeline for completion and sale
- Profit margin and deal economics
The Borrower
- Experience – Number of completed flips
- Track record – Prior project outcomes
- Liquidity – Cash reserves for overruns
- Credit score – Minimum requirements vary (often 650+)
First-time flippers can qualify, though terms may be more conservative. Experienced investors with strong track records access better leverage and pricing.
Fix & Flip vs. Other Loan Types
| Factor | Fix & Flip | DSCR Loan | Bridge Loan |
|---|---|---|---|
| Purpose | Buy, renovate, sell | Buy and hold rentals | Transitional/short-term |
| Term | 6-18 months | 30 years | 12-36 months |
| Exit | Property sale | Ongoing rental income | Refinance or sale |
| Underwriting | ARV-based | Cash flow-based | Value-based |
| Renovation Funds | Yes (draws) | No | Sometimes |
Choose fix & flip when:
- You're buying to renovate and resell
- The property needs significant work
- You need renovation capital built into the loan
- You plan to exit within 6-18 months
Our Fix & Flip Lending Process
Deal Submission
Submit your property details, purchase price, renovation budget, and ARV estimate. Include your experience level and timeline.
Initial Review
We evaluate the deal and identify lenders offering competitive terms for your specific project and borrower profile.
Term Sheet
Receive preliminary terms—typically within 2-5 business days—including rate, leverage, points, and draw structure.
Underwriting
Provide scope of work, contractor bids, comps, and borrower documentation. Lender orders appraisal or BPO.
Closing
Close in as little as 7-14 days for straightforward deals. Receive acquisition funds at closing; renovation funds held for draws.
Draw Management
Complete work phases, request draws, receive inspections, and get funded. Repeat until renovation is complete.
Exit
List and sell the property. Pay off the loan from sale proceeds and keep your profit.
Why Work With Brookmont
Multiple Lender Options – We work with national and regional fix & flip lenders, ensuring you see competitive options—not just one lender's terms.
Experience-Based Matching – First flip? We'll find lenders who work with newer investors. Experienced pro? We'll target lenders offering the best leverage and rates for your track record.
Speed Focus – Fix & flip is a time-sensitive business. We prioritize lenders who can execute quickly and reliably.
Bridge to Hold Strategy – If your plans change mid-project, we can help you refinance into a DSCR loan and convert your flip into a rental—keeping your options open.
Ready to Fund Your Next Flip?
Whether you're an experienced flipper or working on your first project, Brookmont Capital Ventures can connect you with fix & flip financing that matches your deal and experience level.
Questions? Contact our team at info@brookmontcapital.net
Brookmont Capital Ventures is a capital advisory firm. We do not provide direct lending services. All financing is subject to lender approval and underwriting.