Fix and Flip Loans for Beginners

fix and flip loans for beginners

Fix, and flip loans are real estate loans that provide an avenue for an investor to buy a property. Afterwords, an investor will renovate the home and attempt to sell it for a profit. Unlike traditional home mortgages, which could take years to fulfill, this type of loan is short-term. Mostly, the total turn-around time for this transaction is somewhere between 12-18 months. If you’re a beginner to this industry, you’ll find this article as a helpful guide to fix and flip loans.

Even though real estate is generally known as a long-term investment, you should know that fix and flip investors do not take conventional loans. Instead, they use “hard money loans” from individuals and other private investors.

How Can I Secure a Fix and Flip Loan?

Like most start-up businesses, it’ll be a bit of a challenge to get a loan to flip a property. But with some diligence, a novice can readily get the necessary funding to acquire a suitable home and fix it while using money borrowed from reputable sources.

Here are some basic steps that you can take to get a fix and flip loan:

1. First, it’s imperative to do your due diligence by studying the housing market and getting as much information as you possible about fixer-upper properties. Looking in your neighborhood would be a great place to start.

2. After choosing a property to work on, create a detailed estimate of the renovation budget. This will help your lender make a good decision about your best capability as a first-timer in the business.

3. Verify the status of your target property. Is it for sale? If not, is there any possibility of it being put up for sale? If yes, when?

4. Next, talk to your hard loan lender for a pre-approved loan to cover yourself when trying to buy the property. This way, you can secure the purchase while minimizing a transaction fallout because of the unavailability of funds.

5. Once approved, get in touch with an agent to market the property and have the house listed for sale. This is so that you can choose the best buyer for the best price early on.

Why Fix and Flip Loans?

Fix and flip loans are already custom-tailored to the business it goes into. That’s why they can afford to take on individuals who are on the beginner level. Some of its advantages are as follows:

• Fast loan approval

• Flexible loan terms

• Interest-only payments are allowed

• Contracts are based on investment and not on personal income

• Allows for protection of your other assets


Jumping headfirst into the fix and flip business is well worth the challenge, given the potential profits it offers. We suggest that you may want to partner up with another person and work with a seasoned hard money lender too. At DFW Specialty Lending, we help you gain the necessary funding quickly, with little to no down payment. In the Dallas/Fort Worth metroplex, we are your best choice for fast, efficient short-term loans at a premium price.

Expertise and experience will come in handy, especially when conventional financing is not available. Call us today, and let our consultants provide you with options that best fit your needs.

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