The best flips come down to two things: finding the right property and funding it fast. A fix and flip loan from Bentley gives value-add investors the capital to buy, renovate, and profit — with rehab draws that keep your project moving from purchase to payday.
What Is a Fix and Flip Loan?
A fix and flip loan is short-term financing that covers both the purchase and the renovation of an investment property. Instead of draining your own cash into a rehab, the loan funds the acquisition and releases renovation money in stages as the work gets done. When the finished property sells or refinances, the loan is repaid.
This structure is built specifically for flippers and value-add investors who buy distressed or underpriced homes, improve them, and capture the difference between purchase price and after-repair value (ARV).
How draws work: Rehab funds are released in stages. As you complete portions of the renovation and they're verified, the next draw is released — so your project stays funded without tying up all your capital up front.
Why Investors Choose Fix and Flip Financing
Flipping is a speed game. The faster you buy, renovate, and sell, the better your return. Fix and flip loans are designed to keep every stage moving.
- Acquisition + rehab in one loan — fund the purchase and the renovation together.
- Draw-based rehab funding — money released as work completes, protecting your cash flow.
- Based on ARV — leverage the property's finished value, not just today's price.
- Fast approvals — move quickly on competitive deals.
- Short-term structure — built around a quick flip and clean exit.
Fix and flip loans are hard money — here is what that means
Investors search for "hard money loans for fix and flip" and "hard money lenders for flipping houses" because that is the industry's older name for this product. A fix and flip loan is a hard money loan: short-term financing secured primarily by the asset rather than by your personal income.
The term carries some baggage it no longer deserves. Hard money once meant an informal loan from a private individual at punishing terms. Today, flipping houses with hard money means borrowing from a professional lender against a defined project, on documented terms, with the rate reflecting speed and condition tolerance rather than desperation.
What "hard money" actually buys you
Speed and condition tolerance. A conventional lender needs a habitable property and several weeks. A hard money fix and flip lender will fund a house with no kitchen, a failed roof, and no certificate of occupancy — and close it fast enough to win a competitive contract. That is the entire value proposition, and it is what the higher rate pays for.
Hard money vs conventional financing for a flip
| Hard money fix & flip | Conventional mortgage | |
|---|---|---|
| Qualifies on | The deal — purchase price, rehab budget, and ARV | Your income, DTI, and tax returns |
| Property condition | Distressed and unrentable accepted | Must be habitable |
| Speed | Days to a couple of weeks | Typically 30–45 days |
| Rehab funds | Included, released in draws | Not included |
| Term | Short — months, not decades | 15–30 years |
| Rate | Highest of the investor products | Lowest |
| Close in an LLC | Yes | No |
| Prepayment penalty | Usually minimal or none | None on owner-occupied |
If you are holding rather than selling, the comparison is different again — see DSCR loans vs hard money and bridge loans vs hard money.
What hard money costs on a flip
Flippers who lose money on financing almost always did so by modelling the rate and forgetting everything else. Budget for all of it:
- Interest. Highest of the investor products, because the loan is short-term and tolerates condition. It is charged for the months you hold, so every week of delay is real money.
- Origination points. Charged upfront as a percentage of the loan.
- Draw fees and inspections. Each rehab draw typically involves an inspection and a fee.
- Carrying costs. Taxes, insurance, and utilities across the whole hold period — not just the renovation window.
- Extension costs. If the project overruns the term, extending has a price. Build the buffer in rather than discovering it later.
Full breakdown on fix and flip loan rates and costs.
Finding a hard money lender for your market
Investors search "fix and flip loans near me" expecting geography to matter the way it does with a local bank. For most hard money lending it matters less than expected — national lenders fund across state lines routinely, and what actually varies is which markets a lender is comfortable underwriting, not where their office sits.
What to compare instead of proximity:
- Does the lender fund your market? Some restrict rural areas, small towns, or specific states.
- How is ARV determined, and does the lender use its own appraisal or accept yours?
- How fast do draws release? A lender with a slow draw process costs you carrying interest on every delay.
- What is the minimum loan amount? This rules out cheaper markets entirely at some lenders.
- What happens if the project runs long? Extension terms should be known before you start, not negotiated under pressure.
A local relationship helps with contractor referrals and market knowledge. It does not by itself produce better loan terms.
Planning the exit before you borrow
A hard money loan has a clock, and it does not pause because your renovation ran long or the market cooled. Every flip needs a defined exit before the loan funds:
- Sell. The standard plan. Model a realistic days-on-market figure for the actual submarket, not the best case.
- Refinance into a rental. If the property will not sell at your number, converting it to a rental with a DSCR loan is the usual fallback — the BRRRR approach. Start that refinance well before the hard money term matures.
- Extend. Available on most facilities at a cost. Treat it as a contingency, never as the plan.
The mistake that costs the most
Starting the exit refinance at the maturity date rather than ahead of it. Once a hard money facility runs past term it typically moves into a penalty phase — a default rate, monthly penalty payments, or both. Three lost weeks there can erase the profit on the whole project.
Who Fix and Flip Loans Are For
Whether you're flipping your first house or running multiple projects at once, fix and flip financing is built for value-add investors. You're a strong fit if you:
- Buy distressed or underpriced properties to renovate and resell
- Want to preserve your own cash by financing the rehab
- Need acquisition and renovation capital under one loan
- Are scaling from one flip at a time to several concurrent projects
- Value speed and a lender who understands the flip timeline
Understanding ARV and Your Numbers
ARV — after-repair value — is the foundation of every flip. It's the estimated value of the property once renovations are complete, and it determines how much a lender will advance on the project. A disciplined investor builds the deal around conservative ARV estimates, a realistic rehab budget, and a clear resale strategy. We help you pressure-test those numbers so the deal works before you commit.
Common Fix and Flip Mistakes to Avoid
Even great deals can go sideways without discipline. The most common mistakes flippers make are underestimating the rehab budget, over-improving for the neighborhood, and being too optimistic on ARV. A realistic budget with a contingency, renovations that match buyer expectations for the area, and conservative resale numbers are what separate consistent profits from costly lessons. The right financing partner helps you stay grounded by stress-testing the deal before you commit.
How the Fix and Flip Loan Process Works
Getting funded with Bentley is simple. Submit a scenario with the property, your purchase price, rehab budget, and projected ARV. We review every deal personally — no automated rejections — and aim to return a decision within 48 hours, then move quickly toward closing so you can start the rehab.
Throughout the project, draws keep your renovation funded as milestones are met. When the property is ready, you sell or refinance, repay the loan, and move on to the next deal — with a lending partner ready to fund it.
Ready to fund your next flip? Submit your deal today and get a decision within 48 hours. We move at the speed of real estate.
