What is a Fix and Flip Loan? A Guide for Real Estate Investors
If you're looking to buy, renovate, and quickly sell a property for profit, a fix and flip loan could be your most powerful financing tool. In today’s fast-moving real estate market, speed, flexibility, and access to capital are everything—and that’s exactly what fix and flip loans are built for.
What is a Fix and Flip Loan?
A fix and flip loan is a short-term real estate loan used by investors to purchase and renovate a property, then resell it at a higher price. Unlike traditional mortgages, these loans are designed for quick execution and are based more on the property’s after-repair value (ARV) than the borrower's personal income or credit.
Key Features of Fix and Flip Loans
Short-term structure: Typically 6 to 18 months
Interest-only payments during the loan term
Loan amounts based on a percentage of the ARV (up to 70–75%)
Funding for both acquisition and rehab costs
Fast closings—often within 7 to 10 days
How Do Fix and Flip Loans Work?
Let’s say you're buying a distressed property for $150,000 and plan to invest $50,000 in renovations. If the estimated after-repair value is $275,000, a private lender may fund up to 70% of that ARV—roughly $192,500—covering both the purchase and some or all of the renovation budget.
This gives you the leverage to move fast, take advantage of discounted deals, and scale your flipping business without tying up all your cash.
What Do You Need to Qualify?
Requirements vary by lender, but most fix and flip lenders will look at:
Your experience level as a flipper or investor (first-time flippers may still qualify)
The deal economics (purchase price, rehab budget, and ARV)
A basic scope of work or renovation plan
Some skin in the game—usually 10–20% down
Your exit strategy—typically resale, but could also be a refinance
Benefits of Fix and Flip Loans
Speed – Close faster than traditional loans
Flexible credit requirements – More forgiving than banks
Leverage – Use other people’s money to scale
Customized for investors – Tailored underwriting, not cookie-cutter
Risks to Consider
Short-term clock – You’ll need to flip or refinance fast
Higher rates and fees – Compared to traditional financing
Market risk – If prices soften or the rehab takes longer than planned
Cost overruns – Renovation budgets can go sideways without careful planning
The Fix and Flip Process at a Glance
Find a property with value-add potential
Apply for a fix and flip loan with your lender
Close quickly and start your renovation
Complete the rehab on budget and timeline
List and sell the property at a profit
Pay off the loan, pocket the difference, and repeat
How QuickLend Capital Can Help
At QuickLend Capital, we understand that speed, certainty, and flexibility are everything for real estate investors. That’s why our fix and flip loan programs are built to move as fast as you do—funding in as little as 7 days, with transparent terms and expert guidance.
Whether you’re a first-time flipper or a seasoned investor scaling your operation, we offer:
✅ Fast approvals and closings
✅ Up to 90% purchase / 100% rehab financing
✅ Competitive rates with interest-only payments
✅ Nationwide coverage and investor-friendly terms
Ready to flip your next deal?
📞 Contact QuickLend Capital today or get pre-approved in minutes.