Hard Money & Bridge Financing Solutions


A building falling into pieces is an eyesore for an average person, but for a property flipper, it’s a golden real estate opportunity. There is no hassle of buying land or getting permits for new construction. All you have to do is invest in repairs, and you can sell the refurbished structure for a huge profit margin—sounds pretty straightforward, but it’s easier said than done.

Financing is a crucial part of any house-flipping arrangement, and that’s where fix-and-flip loans come in. They are easier to acquire than home mortgages and enable the smooth completion of rehab work on borrowed capital. That being said, choosing the right financier is a common struggle for borrowers who want to keep a decent profit margin.

This article compiles all the necessary knowledge to help you navigate fix-and-flip loans confidently. We will discuss:

  • The structure of a fix-and-flip loan
  • Types of fix-and-flip loans (requirements and rates)
  • Best lender options
  • Tips for a successful fix-and-flip lending cycle

What Is a Fix-and-Flip Loan?

A fix-and-flip loan is a short-term loan used specifically by real estate investors to work on improving rundown (mostly residential) properties requiring different levels of repairs. Such properties are available for cheap. The income-generating strategy is to renovate or upgrade (fix) the structure and later sell (flip) it for a profit—some may even choose to rent it out for a passive stream of income.

The initial cash outflow for any flipping project includes the purchase and repairs costs. While you need to invest some of your own money, the gap between your cash input and the total budget is filled by the loan. Because it’s strictly business-purpose financing, the structure of the loan differs from that of regular mortgages.

The following table outlines the structural difference between fix-and-flip and home loans:

Loan Component

Fix-and-Flip Loan

Home Loan


12–18 months

15–30 years

Lending limit

Around 70% loan-to-value (LTV)—some lenders may offer higher LTVs, but you have to commit to higher interest rates

Average 80%–85% LTV—the down payment requirement is much lower for FHA and VA loans

Interest rate




Short-term investment

Long-term residence

Repayment strategy

  • Interest-only payments
  • Principal repaid at maturity

Amortized monthly payments throughout the tenure

Because of the profit motive, fix-and-flip loans are designed more like commercial and construction loans, making them pricier than owner-occupied mortgage products.

Source: Rob

Fix-and-Flip Loans for Beginners—What’s Ideal and What’s Not

First-time property flippers are often unsure about where to get the funds from—a bank or a private lender. The truth is that banks rarely offer true-to-structure fix-and-flip loans, although they have products that can help with property renovation.

Private lenders are the best option when it comes to profit-oriented real estate financing. They have tailor-made packages that work for property flipping, and the best part is that they service loans more efficiently than banks.

Based on the options available in the current market, there are five types of funding suitable for property flipping:

  1. Hard money fix-and-flip loans
  2. Home equity-based loans
  3. Business lines of credit
  4. Seller financing
  5. Funding based on the borrower’s personal profile

We’ll take a quick look at these options before discussing the intricacies of hard money financing for flips.

Hard Money Fix-and-Flip Loans

Hard money loans work favorably for flipping properties because they are asset-based mortgages that provide financing based on collateral value. These are different from bank mortgage products that require the borrower to have adequate soft assets, such as a solid credit score and a low debt-to-income (DTI) ratio.

Hard money fix-and-flip loans are no-nonsense funding products originating from private capital. You go through fewer bureaucratic restrictions as you get a lender to finance the purchase and/or repair cost. The core qualification requirements include:

  • Profitability—Since a hard money lender is only backed by the collateral, they use profitability projections to make the lending decision. The lender would factor in aspects like the repair budget and after-repair value (ARV) to evaluate if your deal can bring positive cash flows
  • Market health—The returns from home flipping vary across the country. It’s easy to secure financing if your property is located in an active market
  • Feasibility—Fix-and-flip lenders also review if the projected expenses align with the property in question. The project should be realistic, and the borrower should not spend more than 70% of the ARV of the property toward repairs (in general)

Fix-and-flip hard money lenders are abundant in every state. Hard Money Loan Solutions (HMLS) is a top private lender you can contact for tailored and competitively priced property flipping loans funded within two weeks!

Home Equity-Based Loans

Home equity-based loans can work in the case of flipping a house you already own. The idea is to leverage the equity in the property to get extra funds for repairs. There are three products you can consider:

  1. Home equity loan—Home equity loans allow you to borrow against the property’s as-is ownership value. For example, if an unencumbered property is worth $80,000, you can use it as collateral and get roughly $60,000 for repairs
  2. Home equity line of credit (HELOC)—A HELOC is like a home equity loan, but you withdraw the amount as and when needed. You don’t have to pay interest on the unused amount 
  3. Cash-out refinance—You can get a cash-out refinance if you already have an older mortgage on the property. The new lender will repay your existing loan and offer you a larger mortgage (based on the equity you’ve accumulated) with new rates and terms

Equity-based loans can be issued by both banks and private lenders, but neither customizes the product for flipping purposes. You may also have to fulfill other eligibility requirements, such as having a good credit score and DTI ratio.

Business Line of Credit

If you’ve registered your flipping business, you can get a business line of credit to fund repairs for new rehab ventures. Many private lenders offer fix-and-flip line of credit programs with a specific funding limit for open and future projects—you can draw amounts as required and have a subsequent monthly repayment schedule.

Know that line of credit loans typically cannot help with asset acquisition. You have to use it for operational expenses, which—in the case of property flipping—are repairs. These products require no collateral and are offered by small bankers and private lenders to businesses with high credit standing.

Source: Tima Miroshnichenko

Seller Financing

Seller financing (also called owner or bond-for-title financing) allows the property flipper to work on the house based on an agreement signed with the owner. Essentially, the property owner becomes the lender.

In the case of flipping, seller financing requires monthly installments and a lump sum payment when the house is purchased by the final consumer. Every financier will have different rates depending on the market condition. The drawback of this form of funding is that the seller retains 100% of the equity, limiting your earnings in the process. 

Funding Based on the Borrower’s Personal Profile

If you’re unable to secure financing by any of the means above, your last-resort options include getting a personal or 401(k) loan. Refer to the following table for more details:

Type of Loan


Personal loan

A personal loan is no-collateral financing based on your financial credentials. You usually need a minimum credit score of 720 to qualify for these loans. The interest rates are on the higher end, between 15% and 24%. Do a cost-benefit analysis if you’re considering a personal loan for property flipping

401(k) loan

A 401(k) loan is an early withdrawal from your retirement savings account for any purpose. Your interest rates are about two percentage points above prime lending rates. Know that 401(k) loans may attract extra taxes and possible penalties, so employ measures to keep your savings on track

How To Find the Perfect Hard Money Lender for Real Estate Flip Loans

Nothing compares to hard money loans when you’re flipping properties—they are easy to qualify for, get you funds quickly, and align with the cash inflow timeline of fix-and-flip projects. Still, searching for the ideal lender can get confusing.

While you can find lenders by tapping into your real estate network or looking for them online, bear certain aspects in mind before choosing one. The ideal fix-and-flip lender should be:

  • Experienced—Experienced hard money lenders understand the market well and can assess the perceived risk in a project judiciously, which in turn helps them design fair-priced loan packages. They can also warn you if you’re considering investing in a loss-making property
  • Flexible—Flipping houses comes with challenges like unforeseen expenses and market instability. Having a flexible and understanding lender will help you sail through minor setbacks, but a rigid lender may stress you out, possibly causing you to abandon the project altogether
  • Transparent—Work with a lender that’s transparent about their interest rates and other price components. One of the biggest woes of property flippers is losing a chunk of profits on hidden fees, which only come up after they’ve signed up for the loan
  • Convenience-focused—Good hard money lenders typically focus on convenient and timely funding. They don’t hold you back by asking for confidential financial info or mounds of paperwork

We recommend looking at customer reviews and asking prospective lenders for quotes directly—you can start with Hard Money Loan Solutions.

Hard Money Loan Solutions Has the Best Fix-and-Flip Loans for All Properties!

Hard Money Loan Solutions (HMLS) is one of the top private lenders in the country for servicing residential and commercial fix-and-flip loans. HMLS—headquartered in Florida—specializes in flexible hard money loans facilitating one or more of the following scenarios:

Source: RODNAE Productions

HMLS fix-and-flip loans work for anyone with a sensible deal, i.e., one that brings positive cash flows. You can qualify for up to 70% LTV when purchasing a fixer-upper. If you’re flipping a home you already own, HMLS can offer you the requested amount for repairs based on your equity in the property. The lending group is open to assist non-standard house flippers as well, which include applicants with:

HMLS charges between 9.99% and 12% for property flip loans—reach out to the team today to get a customized quote! You can qualify for low interest rates if you’re experienced or desire a small LTV ratio. The following table has info about the various lending aspects of a standard HMLS loan:


HMLS Sample Loan


1–3 years

Loan amount


Eligible property

  • Single- and multi-family home
  • Apartment
  • Any commercial building
  • Condo
  • Special-use facility


Up to 70%

Interest rate


Rate type


Origination fee

2 points or 2%

Closing time

3 days to 2 weeks


  • Interest-only monthly payment
  • Balloon principal repayment at maturity

Prepayment penalty

No penalty if settled after 6 months

Fix-and-Flip Loans for New Investors—HMLS Delivers and Guides!

HMLS isn’t another generic lender making profits off private capital—the team consists of veteran real estate investors and entrepreneurs who understand the struggles of house flippers. Talk to an HMLS lender directly, and they will provide you with one-on-one guidance on the deal, including areas like:

  • Estimating costs and projecting future values
  • Arranging draw schedules
  • Funding of complicated projects with flexibility
  • Transitioning into a long-term or permanent refinance (if you’re fixing to rent or hold)

Source: Google Reviews

HMLS has been receiving consistent 5-star ratings from clients over the years as they prioritize a customer-focused approach no matter the situation. Here are other core features that set the group apart from competitors:

  • Customized loan terms—Every property flipping project is different, and that’s why HMLS prepares customized loan packages for qualified applicants
  • Light paperwork—At HMLS, you never have to share sensitive details about your private finances or personal profile. The only documents you need to submit include property agreements and budget estimations
  • No hidden fees—Many private lenders impose unnecessary fees that eat away at your profits. HMLS never burdens clients with additional costs for:
    • Inspection
    • Processing
    • Underwriting
    • Upfront fees
    • Digital retention 
  • Funding commitment—Once you accept an HMLS loan offer, you’re guaranteed to get the funds, ensuring your project doesn’t suffer from funding hiccups
  • End-to-end transparency—HMLS clients have unrestricted access to all the info they need about the processing cycle, rates, cost, and other specifics

How To Get a Fix-and-Flip Loan at HMLS

If you’re exploring an HMLS fix-and-flip loan, apply to get quick approval. Here’s what to do:

  1. Visit the HMLS loan application page
  2. Enter your name and contact details
  3. Add property information
  4. Specify the requested amount
  5. Submit the application

A lender will evaluate your request and contact you over the phone to discuss your deal. To get the basic cost projections ready, you can use the HMLS ARV Calculator and crunch numbers on the property’s worth and your potential return on investment (ROI).

The HMLS team is quick to communicate decisions to applicants and, if requested, may also guide you on other lender options. The lending group also offers attractive loan programs for non-flip scenarios, including:

Source: Alena Darmel

If you want to expand your search, check out our reviews of other popular lenders that offer fix-and-flip or similar loans:

You may be tempted by some independent lenders offering fix-and-flip loans with no money down, i.e., 100% financing, but we recommend thinking twice about such deals. These loans often come with unmanageably high interest rates that shrink or even negate your profits eventually.

How To Make the Best Use of Fix-and-Flip Loans

After securing a fix-and-flip loan, your primary focus should be on harvesting a nice profit and maximizing your yield. Check out some of the best practices for flipping projects:

  • Have a realistic budget—Preparing an accurate budget is a must for rehabbing. It’s best to have a 10% reserve to pay for contingencies and cost escalations beyond projections
  • Understand your comfort zone—Avoid excessive and unnecessary upgrades to the property if you want a comfortable flipping cycle. Getting too ambitious can lead to dramatic over-expenditure that may not be proportionate to the increased profits
  • Stick to the projected timeline—Exceeding the project timeline leads to cost overdrives and may even depreciate the market value of the property
  • Play hardball while selling—If you’re a first-time flipper, learn some sales negotiation tactics to get the best price on the finished property
  • Have multiple exit strategies—Selling is not the only option for generating revenue. You should explore long-term refinance strategies in case you end up renting out the property or holding it for capital appreciation
  • Be prepared for curveballs—Setbacks during property flipping can be minor (like events affecting the budget) or major (if the property turns out to be unlivable). Having a friendly lender pays off as they help you get out of the situation with minimum damage 

At Hard Money Loan Solutions, the lenders can always help you plan out alternate repayment strategies if you encounter a bump in the road—apply online to start your fix-and-flip journey.


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