How to finance your first fix & flip.

Your first flip is exciting — and a little scary. The financing part doesn't have to be. Here's exactly how it works when you fund a fix & flip with a private lender, and how to set your first deal up to win.

1. Find a deal that actually works

Before financing, you need a deal worth financing. The math is simple: your purchase price plus rehab costs plus holding and selling costs should leave a healthy margin below the after-repair value (ARV). A common rule of thumb is to keep your all-in cost at or below 70–75% of the ARV. If you're not sure, that's exactly the kind of thing we'll evaluate with you — honestly.

2. Understand how much you can borrow

On the right deal, a private lender can finance up to 100% of the purchase price and 100% of the rehab budget, up to 75% of the ARV. That means less of your own cash tied up in the deal. You'll still need funds for closing costs and reserves — but far less than buying a property outright.

3. Know what you'll need to get approved

• The property address and purchase price
• Your estimated rehab budget and scope of work
• The after-repair value (ARV), supported by comps
• Your exit strategy — sell or refinance
• Basic information about your finances and experience

Notice what's not at the top of that list: a perfect credit score. We don't have a hard minimum. The deal comes first.

4. How the money actually flows

At closing, the lender funds your purchase and sets aside the rehab budget. You don't get all the rehab money up front — instead, you draw it in stages as you complete work. Submit photos or an inspection, get the draw approved, and funds are released (we do this in 24–48 hours). This protects both you and the lender and keeps the project on track.

5. Renovate, then exit

You complete the renovation, then execute your exit: sell the property (a flip) or refinance into a long-term loan (a rental — the "BRRRR" strategy). The hard money loan is paid off at that point. With no prepayment penalty, you pay only for the time you actually use the money.

Common first-timer mistakes to avoid

• Underestimating rehab costs. Pad your budget and get real contractor quotes.
• Overestimating ARV. Use recent, comparable sales — not hopeful ones.
• Ignoring holding costs. Interest, taxes, insurance, and utilities add up every month.
• Going it alone. A lender who's flipped 100+ homes can spot problems before they cost you.

You don't have to figure it out alone

First-time investors are our specialty. We'll evaluate your deal with you, structure the financing, and guide you through each step — so you can learn from our experience instead of expensive mistakes.