How Fix and Flip Investors Get Funded Fast

Fix and flip investing requires speed, and the right funding strategy can make or break your margins.

Primary Funding Options

Hard Money Loans — The industry standard for fix and flip. Rates: 8-15%, 1-3 points origination, terms: 6-18 months. Lenders focus on the property's ARV rather than your credit. You can close in 7-14 days.

Bridge Loans — Similar to hard money but sometimes with better terms for experienced investors. Available through private lenders and some banks.

DSCR Loans — For the rental strategy (BRRRR). Qualification based on the property's rental income potential rather than your personal income.

How to Structure a Deal

1. Find a property below market value (target 70% of ARV rule)
2. Estimate renovation costs accurately (add 15-20% contingency)
3. Calculate holding costs (interest, insurance, taxes, utilities)
4. Secure funding covering purchase + renovation
5. Complete renovation on schedule
6. Sell or refinance

The 70% Rule

Maximum Purchase Price = (ARV × 70%) - Renovation Costs

Example: ARV $400,000 × 70% = $280,000 - $80,000 renovation = $200,000 max purchase price

Building Relationships with Lenders

Repeat investors get better terms. After 3-5 successful flips, expect lower rates, higher leverage, and faster closings. Document every project with before/after photos and financial summaries.