Fix and flip funding refers to short-term loans for real estate investors who buy properties in need of repair, renovate them, and then either sell them for a profit, or refinance into a permanent loan. Unlike traditional mortgages, fix and flip loans are based on the property’s After-Repair Value (ARV), allowing investors to finance distressed properties that might not qualify for a conventional loan. These loans provide quick access to funds for purchase and renovation, but they have higher interest rates and shorter terms, making them suitable for experienced investors who can complete the project on schedule.
Advantages: Fast funding —Traditional home loans can take a month to process and fund but hard money fix and flip loans can provide funds within the 2-3 weeks. Flexible documentation requirements. Less risk — A traditional home loan is backed by your personal credit and property, but a hard money loan is backed only by the property for which it was granted. If the worst does happen, you won’t lose your home.
Disadvantages: Timing: a fix and flip loan might be to a borrower’s (or a lender’s) disadvantage is if the flip takes significantly more time than planned. Rates: fix and flip loans come with a relatively high interest rate, because they are intended for short life spans.
RCG can provide access to funding of up to 90% of the purchase price and 100% of the renovation budget*. I’ll likely insert some table with general parameters.
* Qualification is based on credit, experience, and ARV.
