Right now, all around us, there are homes that sellers can’t sell and buyers THINK they can’t buy.

Fix and Flip loans address both of the above challenges.

These programs allow realtors to close more deals while, at the same time, helping their investor clients move faster and more competitively in this market.

Fix and Flip loans are designed for investors who are buying properties that need renovation who want to flip the properties for a profit.  It also works for clients who want to renovate a home and then refinance it and turn it into an investment property.

So, how do Fix and Flip loans work?

First, on the purchase side, a buyer can come in with as little as 10% down of the purchase price.  That’s a big deal, because it allows investors to stretch their capital and take on more deals at once.

Second—and this is where it really gets powerful— buyers can finance 100% of the renovation costs. So a buyer doesn't have to tie up a large amount of cash in the rehab.

How are the renovation funds handled?

The buyer will pay for the work upfront for each draw period, and then at the end of that draw period, they are reimbursed for the work completed.

So in simple terms:

• The buyer funds the work as it’s being done
• They submit for reimbursement
• They get paid back at the end of the month

This keeps projects moving forward without delays, while still ensuring the work is being completed properly.

The loan is a 12, 18 or 24 month term interest only loan which is paid monthly.  This is ideal for flipping timelines. It gives investors enough runway to purchase, renovate, and sell the property without feeling rushed.

The interest rate typically falls between 10% and 12%, depending on things like credit score, property type, experience and overall deal strength.

Now, I know what some of you are thinking—“That rate sounds higher than a traditional loan.”  And that’s true- but this isn’t a traditional loan.

This is about speed, leverage, and opportunity.

Property investors are using this program to:

• Get into deals they might not otherwise be able to
• Compete with cash buyers
• Preserve their own capital
• And scale their business faster

From the perspective of a realtor, Fix and Flip financing opens up a lot of doors.

It means:

• Realtors can confidently show distressed or value-add properties
• Realtors don’t have to worry as much about a buyer’s renovation budget
• Realtors have a financing solution ready for investors who want to move quickly

It also helps reduce deals falling apart due to financing issues, because this program is built specifically for these types of properties.

Another key advantage is speed and simplicity. These loans are designed to close quickly, which is critical in competitive situations.  Fix and Flip Loans aren’t looking at the client’s tax returns or any income related documents.  On these, what's most important is what the property will be worth after renovation.

So when a realtor is working with an investor and they ask, “Can I actually make this deal work?”— a realtor can have a strong answer.

The main takeaway from all this for realtors is:  Fix and Flip loans help their investor clients buy with less cash, renovate with full financing, and move quickly- which ultimately helps them close more deals and brings them more happy, repeat buyers...

For agents who want to work with more investors, Fix and Flip financing is a tool that adds real value.