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 for $180K and renovating it with a $65K rehab budget, selling the completed property for $310K after a 4-month renovation. Fix and flip loan covered 90% of purchase and 100% of rehab, 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 for $240K, using a fix and flip loan to fund both the acquisition and a $120K 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 discount for $95K, securing a fix and flip loan at 85% of purchase with a $55K rehab budget, and selling the restored home for $215K within 5 months of closing.
Why CapitalAx
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.
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.