A fix and flip loan is a short-term loan secured by real estate that investors use to buy a property, renovate it and sell it for a profit. HardMoney Company structures each loan around the deal and can fund renovation costs in draws as work progresses. All loans are business-purpose only.
Fix and Flip Loans at a Glance
| Topic | Answer |
|---|---|
| Best for | Buy-renovate-sell projects, for new and experienced flippers |
| Property types | Single-family homes, multi-family residential |
| Loan amount | $150k minimum, no maximum |
| Term | 6–18 months |
| Loan-to-value | Up to 80% |
| Time to close | As little as 7 days |
| Borrowers | Investors and business entities; no owner-occupied homes |
The HardMoney Company provides individuals as well as organizations short-term house flipping loans and hard money fix and flip loans. These loans are also known as fix and flip loans because they are short-term finance loans that are secured by real estate, and used to purchase and renovate a property. Our team works directly with you to help create a custom structure loan that provides you with flexible terms that will help you complete your project. This will make it easier and quicker for you to buy a property, fix it up, and then sell it for a profit.
The HardMoney Company specializes in making and servicing fix and flip loans and house flipping loans. Most of the time we will lend you the acquisition funds, however, in the correct circumstance, we may be able to arrange a portion of the rehab estimates. Those funds will be paid out to you in draws as the work progresses. It is important to reach out to our team as soon as possible to apply for our loan offerings and to learn how we can help with your project.
Read our beginner’s guide for more information on how to start flipping houses.
Why Should You Choose HardMoney Company?
Short-term house flipping loans are a great option for experienced investors as well as those who are new to the space. Typically, the most difficult part of the process is generating the capital for the initial property purchase. Oftentimes getting a bank loan isn’t a great option because the rates offered aren’t a great fit for a short-term flipping project.
To help assist you with cost estimates related to your fix and flip hard money loan, use our loan calculator!
What Are Fix and Flip Loans?
HardMoney Company’s House Flipping Loans and fix and flip loans are short-term loans, secured by real estate, and used to purchase and renovate property. Our Fix and Flip loan will allow you to buy a property, fix it up and sell it for a profit. This type of loan is a great option for investors because of the quick turnaround time and the flexibility that isn’t possible with other types of loans.
100% Fix and Flip Loans
Currently, the HardMoney Company does offer 100% fix and flip loans, but requirements are very strict. Most of our fix and flip loans require 10- 20% cash down from the client. However, our team is always open to discussing various and unique options to get the deal closed. We can provide clients with fix and flip loans for all their real estate projects.
Are House Flipping Loans a Good Idea for Beginners?
House Flipping loans are utilized by seasoned real estate investors as well as those who are new to real estate investing. Our team has experience providing hard money fix and flip loans for beginners and is available to discuss the possibility of receiving a house flipping loan no matter your level of experience. We are committed to helping our clients avoid the pitfalls of real estate that novice investors often experience. We only fund fix and flip loan deals that have a high likelihood of positive returns.
What Other Types of Loans Does HardMoney Company Offer?
Our team provides a variety of different loan types to help with your project. We offer the following loan types as well other options:
Hard Money House Flipping Loans vs. Traditional Loans
There are many differences between a house flipping loan and a traditional bank loan. One being that a hard money house flipping loan requires only a fraction of the paperwork that a bank loan does. Another is a bank loan can take up to 90 days to close, and a hard money house flipping loan can close in a quickly as one week. Also, a house flipping loan can provide renovation money to fix up the property, traditional loans will not do that and a hard money house flipping loan does not cap the number of properties you can finance. House Flipping loans do not require the property to be in livable conditions as a bank loan does and they are rarely based on the borrowers credit but rather the value of the property. There are many benefits and differences between these two types of loans. A hard money house flipping loan is quicker requires less paperwork and looks at many different factors of the property and borrowers objectives.
Fix and flip financing approvals are dependent on the deal, your experience, the property, and the exit strategy. We will assist in helping throughout your “flip” deal to ensure your success.
Recent Properties Funded by Fix and Flip Loans From The HardMoney Company
Silver Spring, MD | Loan Amount $383k
Washington, DC | Loan Amount $466k
Temple Hills, MD | Loan Amount $272k
Washington, DC | Loan Amount $355k
Fix and Flip Financing FAQs
What is a fix and flip loan?
A fix and flip loan is a short-term loan secured by real estate that investors use to buy a property, renovate it and sell it for a profit. HardMoney Company’s fix and flip loans start at $150,000, typically run 6 to 18 months, and can close in as little as 7 days, so investors can move on deals before other buyers do.
Do you lend to first-time house flippers?
Yes. HardMoney Company works with both new and experienced investors. The property and the deal are the main factors in the lending decision, though past performance and the strength of the transaction can affect how much cash a borrower needs to bring. First-time flippers should come prepared with a clear budget, renovation scope and plan to sell.
What is the 70% rule in house flipping?
The 70% rule is a common guideline flippers use to estimate the most they should pay for a property. It suggests paying no more than 70% of the after-repair value (ARV) minus renovation costs. For example, on a home with a $300,000 ARV needing $40,000 in work, the guideline points to a maximum offer of $170,000. It’s a rule of thumb, not a lending requirement.
Can a fix and flip loan cover renovation costs?
Depending on the deal, it can. HardMoney Company usually lends the acquisition funds, and in the right circumstances it may also fund part of the rehab estimate. Those funds are released in draws as the work progresses. Contact the team early in your planning so the loan can be structured around your renovation budget.
How much can I borrow with a fix and flip loan?
HardMoney Company lends up to 80% loan-to-value (LTV) on fix and flip projects, so the loan can cover up to 80% of the property’s value, with the borrower covering the rest through cash or equity. Loan amounts start at $150,000 with no stated maximum. The final amount depends on the property, the renovation plan and the overall deal.
What types of properties are eligible for fix and flip loans?
HardMoney Company provides fix and flip loans on single-family homes and multi-family residential properties purchased as investments. The loans are business-purpose only. Properties must be bought to renovate and resell, not to live in, because the company doesn’t lend on a borrower’s primary residence.