Fix-and-Flip Funding
Speed: Purchase properties and begin rehabbing within days or weeks rather than months
Variety: Fix and flip funding can cover materials, tools, and labor, not just property acquisition
Flexibility: Fix and Flip funding is short term financing applied to your unique project or scenario
Fix & Flip Loans
Lending Overview
Fix-and-flip loans give your business the capital necessary to buy properties and to improve them prior to resale. Loans for fix-and-flip developers are often a combination of short-term, interest only acquisition financing, property improvement funding, based on the future value of the building after repair, and working capital funding to purchase necessary equipment, tools, and cover labor costs for your team. Our team can help you evaluate costs and develop a growth strategy to give you the greatest return on investment.
Alliance Enterprises
How to Effectively Apply Funds
Fix-and-Flip funding is applied to several categories of real estate: single family residential, multifamily residential, retail outlets, office buildings, and medical plazas, to name a few. Choose your area of expertise, create your improvement plan, and talk with us about options for financing your next project.
Acquisition Financing
Accelerate time to close and increase your property turnover rate by working with Alliance Enterprises to serialize property acquisition funding. Close your next loan while your current property is on the market. Make more money with financing built for the fix-and-flip business model.
Property Improvement Loans
Leverage the future value of your property to make upgrades without breaking the bank. Property improvement provides funds for redevelopment based on the value after repair. Access the capital you need to do the job right!
Working Capital Funding
Flexible funds are available to Fix-and-Flip developers with a working capital line of credit. Access the funds you need for HVAC, kitchen appliances, paint, not to mention tools and equipment. Manage your costs and operate with a lower cash threshold with working capital funding.
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FAQ’s
We believe that the more you know, the better the decisions you make. And in the financing world, better decisions mean lower rates, better terms, and increased profitability.
These FAQs are only the start. Our team is here to answer all of your questions and support you in finding the best financing solution for your unique scenario.
Q. Will Fix-and-Flip financing guarantee a return?
Fix and flip funding is not guaranteed. It is a fixed-asset loan on the property you purchase to redevelop. The actual value of the property could be more or less, based on the actual cost of upgrades necessary, changes to the market, and time from redevelopment to sale of the property.
Q. How can I make the most money with Fix and Flip financing?
Earnings are based on the final sale price of the upgraded property minus the cost of upgrades, minus the cost of acquisition. Decreasing the time in redevelopment, decreasing cost of materials, and choosing properties in markets that are appreciating are strategic ways to maximize profit.
Q. How long does it take fix-and-flip financing to close?
A fix-and-flip loan can take a matter of days or weeks to close. In contrast to permanent financing, which takes 45 days at minimum, these loans are fast acting.
Q. What terms can I expect with fix-and-flip property loans?
Loan terms usually extend up to three years, but because they are interest only, its best to target the shortest timeline possible. Interest rates are usually higher than a commercial mortgage, but because the buyer does not pay principle, monthly payments are lower than a mortgage. Some loans also allow the interest to be rolled into the balloon payment at the conclusion of the loan, helping fix-and-flip developers manage cash.
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Get Funded
The funding process starts with a short 3 minute online application. Our team will then review your needs and quickly provide you with a custom funding proposal that targets your desired financing types, rates, and terms.