Loan Programs · Investor loans

Short-term financing for flips

Flipping homes in South Florida can work when the numbers and the timeline are tight. Fix and flip loans fund the purchase and renovation of an investment property you plan to sell. We help you understand the costs up front so the deal still works on the back end.

Fix and Flip Loans explained

A fix and flip loan is a short-term, business-purpose loan for buying, renovating and reselling a property. Lenders often look at both the purchase price and the after-repair value (ARV), and they may fund part of the renovation through draws. Terms are typically measured in months, not years. Experience matters: lenders may offer better terms to investors with a track record of completed projects. Guidelines, leverage and fees vary by lender and are subject to credit approval.

Who it fits

  • Investors buying distressed or dated homes to renovate and sell
  • Experienced flippers who want speed and flexibility
  • Newer investors partnering with an experienced contractor
  • Investors planning to refinance into a DSCR loan and hold as a rental

Florida specifics

  • Insurance can be harder to get on vacant or distressed homes in Florida, so line up a builder's risk or vacant property policy early.
  • Older South Florida homes may need roof, electrical or plumbing updates before buyers' lenders and insurers will accept them.
  • Permitting times differ by city across Palm Beach, Broward and Miami-Dade, which affects your holding costs.
  • Homes in flood zones may face rules on substantial improvement that require bringing the structure up to current flood standards.

How it works with Justin

  1. We review the deal: purchase price, scope of work, budget and expected resale value.
  2. The lender reviews your experience, credit and liquidity and issues terms.
  3. At closing, you fund the down payment and the lender sets up the rehab budget.
  4. Rehab funds are released in draws after inspections.
  5. You sell the property and pay off the loan, or refinance into a long-term rental loan.

Documents to gather

  • Purchase contract
  • Scope of work and renovation budget
  • Track record of past projects, if any
  • Entity documents if buying in an LLC
  • Bank statements showing down payment, rehab contribution and reserves

Things to consider

  • Short-term loans usually carry higher costs and fees than long-term mortgages.
  • Delays increase interest and holding costs and can erase profit.
  • Lenders may not fund the full rehab budget, so you need cash on hand.
  • Extension fees can apply if the project runs past the term.

Share a few details and Justin will tell you whether Fix & Flip fits, with real numbers for your loan.

Fix and Flip Loans: common questions

What is after-repair value (ARV)?

ARV is the estimated value of the property once the planned renovations are complete. Lenders use it to judge how much they are willing to lend on the project.

Do I need experience to get a fix and flip loan?

Not always, but experience often leads to better terms. Newer investors may need a larger down payment or a partner with a track record.

How long is a fix and flip loan?

Most are short-term, often around a year, with possible extensions. The term should match your renovation and sales timeline with some buffer.

Can I refinance a flip into a rental loan?

Yes. Many investors refinance into a DSCR loan once the renovation is complete and the property is rented. Lenders usually have seasoning rules on how soon that can happen.

Does the loan cover renovation costs?

Many programs fund part or all of the renovation budget through draws as work is done. You usually pay for the work first or bring funds to closing, depending on the lender.

Related loan programs

  • DSCR Loans — DSCR loans for Florida real estate investors: qualify on rental cash flow instead of tax returns. How the ratio works, LLC closings and South Florida tips.
  • Investment Property Loans — Financing for South Florida rental properties: conventional investment loans, rental income rules, condo and HOA rental limits, and when DSCR fits better.
  • Bridge Loans — Bridge loans for South Florida buyers who want to buy before they sell: use equity in your current home, make a stronger offer and avoid moving twice.
  • Renovation Loans — Buy or refinance a South Florida home and finance the repairs in one loan: FHA 203(k), Fannie Mae HomeStyle and Freddie Mac CHOICERenovation.

South Florida areas where it fits

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