Buy It, Rehab It, Sell It. One Loan Covers the Whole Project.
Fix and flip loans cover the acquisition and the rehab budget in a single facility, with draws tied to construction milestones and terms built for speed.
Acquisition and Rehab Financing in One Loan
Fix and flip loans are short-term financing designed specifically for investors who acquire properties, renovate them, and sell at a profit. The loan covers the purchase price and the renovation budget in a single facility, with rehab funds released in draws as work is completed. We connect investors with fix-and-flip lenders who fund both residential and commercial rehab projects, from single-family homes to small multifamily buildings and mixed-use properties. From a first project to a fiftieth, the right lender makes the difference between a deal that pencils and one that doesn't.
Key Terms
Who Is It For
- Residential real estate investors doing property rehab and resale
- Experienced flippers scaling their renovation portfolio
- First-time investors entering the fix-and-flip market
- Commercial investors renovating small multifamily or mixed-use properties
- Contractors and builders who acquire properties for renovation and sale
Common Use Cases
- Single-family home purchase and renovation for resale
- Small multifamily (2-4 unit) acquisition and rehab
- Commercial property light renovation and quick sale
- Distressed property acquisition at discount for renovation
- Portfolio flipping with multiple simultaneous projects
Borrower Scenarios
- A residential investor purchasing a distressed 3-bedroom home well below market and renovating it on a defined rehab budget, selling the completed property at a healthy margin after a 4-month renovation. The fix and flip loan covered most of the purchase and the full rehab budget, with draws released after framing, mechanical, and finish inspections.
- An experienced flipper running three simultaneous projects across Austin, using a single lender relationship to fund all three acquisitions with a blanket fix and flip facility that streamlined draws and reduced per-project origination costs.
- A contractor-investor acquiring a vacant duplex near downtown, using a fix and flip loan to fund both the acquisition and a gut renovation, then refinancing into a DSCR rental loan after completing the rehab instead of selling.
- A first-time flipper purchasing a fire-damaged property at a deep discount, securing a fix and flip loan that covered most of the purchase along with the rehab budget, and selling the restored home within months of closing.
Why CapitalAx
Related Loan Programs
Frequently Asked Questions
How much of the renovation costs does a fix and flip loan cover?
Most fix and flip lenders cover 80% to 90% of the purchase price and up to 100% of the renovation budget, with total loan proceeds capped at 70% to 75% of the after-repair value (ARV). Rehab funds are held in escrow and released in draws as work milestones are completed and inspected. Every project is underwritten on its own merits. Actual leverage and rehab coverage depend on the property, the budget, and your track record.
Can I get a fix and flip loan for a commercial property?
Yes. While most fix and flip lending focuses on residential properties, CapitalAx works with lenders who also fund commercial rehab projects including small multifamily buildings, mixed-use properties, and light commercial renovations where the exit strategy is a quick sale or refinance.
Do I need experience to qualify for a fix and flip loan?
First-time flippers can qualify, though terms may be more conservative with lower leverage and higher rates. Most lenders offer better terms for borrowers with a track record of completed projects. After 3 to 5 successful flips, you'll typically qualify for higher leverage and lower costs.
