In competitive real estate markets, the window on a good deal is narrow. Distressed properties attract multiple offers, motivated sellers move fast, and conventional financing — with its 30-to-45-day timelines and income-heavy underwriting — often can’t keep pace with the speed that flipping demands. Hard money fix and flip loans exist precisely for this gap: short-term, asset-based financing designed to get buyers from contract to keys in days, not weeks.
LendSure’s Fix and Flip loan program finances both the acquisition and renovation of single-family and multifamily properties up to 4 units, with term sheets typically issued in hours. According to ATTOM’s 2024 U.S. Home Flipping Report, nearly 298,000 single-family homes and condos were flipped nationwide — and almost two-thirds were purchased with cash. Financing that moves at near-cash speed is the difference between winning those deals and watching them close without you.
What Makes Fix and Flip Loans Different
A fix and flip loan is a short-term, asset-based loan structured around the investment itself rather than the borrower’s income profile. Approval focuses on three things: the property’s current value, the projected after-repair value (ARV), and the feasibility of the renovation plan.
This structure separates fix and flip financing from conventional mortgages. There are no W-2s, no tax return requirements, and no personal debt-to-income calculation. The deal is the underwriting.
Why Speed Is the Real Advantage
Traditional bank financing for investment properties typically takes 30 to 45 days to close — if the lender will touch a distressed or non-owner-occupied property at all. Fix and flip lenders operate on a fundamentally different timeline. LendSure issues term sheets typically within hours of application.
That speed translates directly into deal access. Sellers of distressed properties, auction purchases, and off-market deals often require or strongly prefer fast closes. A buyer who can close in days competes differently than one waiting on a bank’s underwriting queue.
Understanding ARV: Why the Deal Matters More Than the Price
The central concept in fix and flip lending is After-Repair Value — what the property will be worth once renovations are complete, not what it’s worth today. Lenders use ARV as the primary basis for determining loan size, because their risk is tied to the completed asset, not the distressed starting point.
LendSure finances up to 90% of the purchase price and up to 100% of renovation costs, with the total loan capped at 70% of ARV. That cap ensures there’s meaningful equity in the completed project relative to what was borrowed.
The 70% Rule in Practice
Before approaching any lender, experienced buyers run the 70% rule as a quick deal filter: maximum purchase price equals 70% of ARV minus estimated renovation costs. It’s the same logic lenders apply when setting loan limits, and using it upfront tells you immediately whether a deal has enough margin to absorb financing costs and still return a profit.
For example: a property with an ARV of $400,000 and $60,000 in renovation costs supports a maximum purchase price of $220,000 under the rule ($400,000 × 0.70 = $280,000 − $60,000 = $220,000). As Innago notes, success depends on accurate estimates of both ARV and repair expenses — misjudging either can seriously erode the margin the formula is designed to protect.
How the Loan Is Structured
LendSure’s Fix and Flip program uses a 12-month interest-only term. During the renovation period, borrowers pay interest only on funds drawn — not on the full loan amount — which keeps monthly obligations low while the project is active. The loan is repaid in full when the property sells.
Renovation funds are not disbursed at closing. They’re held in a construction holdback and released in stages as work is completed and verified.
The Draw Process
Each time a renovation milestone is reached, the borrower submits a draw request that includes paid invoices and documentation of completed work. LendSure reviews the request, an inspector verifies progress on-site, and a title rundown confirms clear status before funds are released.
This structure keeps the project financially accountable at each phase and ensures renovation capital is deployed in step with actual construction progress.
Loan Amounts and Property Types
LendSure’s program covers loan amounts up to $1 million across single-family residences and multifamily properties up to 4 units. The program is open to any experience level — first-time buyers and seasoned flippers alike — with qualification driven by the deal rather than the borrower’s financial history.
Exit Strategies: How You Repay the Loan
Every fix and flip loan approval is tied to a clear exit strategy — the plan for repaying the loan at the end of the term. Lenders evaluate this at underwriting, and buyers should have it mapped out before they apply.
Sell After Renovation
The most common exit. The property is completed, listed, and sold. Proceeds cover the loan balance and remaining costs, with the profit retained by the buyer. LendSure’s 12-month term accommodates the typical renovation-to-sale cycle, with extension options available when timelines shift.
Hold as a Rental: The BRRRR Path
Some buyers complete a renovation and decide to hold the property as a rental rather than sell. LendSure offers a direct path to a DSCR loan once the renovation is complete — the property is refinanced based on its stabilized rental income, retiring the fix and flip loan and transitioning into long-term financing. No personal income documentation is required at that stage either.
Having this option available before the project starts gives buyers more flexibility to respond to changing market conditions without being forced to sell at the wrong time.
Managing the Real Costs of a Flip
Hard money fix and flip loans carry higher financing costs than conventional mortgages — that’s the trade-off for speed, flexibility, and asset-based underwriting. Understanding what those costs are before you run your deal math is non-negotiable.
Costs to account for include interest charges on drawn funds, origination fees, draw inspection fees, title insurance, and builder’s risk insurance during renovation. Property taxes, utilities, and insurance accumulate throughout the hold period.
Why Timeline Accuracy Protects Your Margin
Every week a project runs over schedule adds to carrying costs and compresses the margin you modeled at acquisition. ATTOM’s 2025 Home Flipping Report found that the average flip took 163 days from acquisition to resale — and with margins at their lowest point since 2008, timeline discipline is no longer optional. According to CNBC’s analysis of ATTOM data, the typical 2025 flip generated a 25.5% gross return — down from 32% the prior year — driven largely by elevated home prices and rising material costs.
The buyers who use hard money fix and flip loans most effectively treat financing cost as a fixed input in their deal analysis, not an afterthought. Run the numbers with financing costs included before you make an offer. If the margin still works, the deal works.
Start Your Fix and Flip With LendSure
LendSure’s team issues term sheets typically within hours, with the full program built around moving as fast as the deal demands. To explore your next project, connect with LendSure directly.
Frequently Asked Questions
What is a hard money fix and flip loan?
A hard money fix and flip loan is a short-term, asset-based loan used to purchase and renovate a property before selling it. Approval is based primarily on the property’s value and projected ARV rather than the borrower’s income or credit profile. Loan terms are typically 12 months, with interest-only payments during the renovation period.
How much can I borrow with LendSure’s Fix and Flip program?
LendSure finances up to 90% of the purchase price and 100% of renovation costs, with the total loan capped at 70% of ARV. Loan amounts go up to $1 million, covering single-family residences and multifamily properties up to 4 units.
How fast does the loan close?
LendSure issues term sheets typically within hours of application. Closing timelines are significantly faster than conventional financing — making the program viable for time-sensitive deals, off-market acquisitions, and sellers who require a fast close.
Do I need experience to qualify?
No. LendSure’s Fix and Flip program is open to any experience level. First-time buyers should come prepared with a detailed scope of work, a realistic budget, a licensed contractor, and a clear exit strategy — these carry significant weight in underwriting when experience is limited.
What happens if I want to hold the property as a rental instead of selling?
LendSure offers a direct path to DSCR financing for buyers who complete a renovation and decide to hold as a rental. The fix and flip loan is retired through a refinance into a DSCR loan, qualifying on the property’s rental income — no personal income documentation required.
Are renovation funds available at closing?
No. Renovation funds are held in a construction holdback and released through a draw process as milestones are completed and verified. Each draw requires paid invoices, an on-site inspection, and a title rundown before funds are disbursed.
What is the 70% rule and how does it apply to fix and flip loans?
The 70% rule is a standard deal-screening formula: the maximum purchase price should equal 70% of ARV minus estimated renovation costs. Lenders use this same logic when setting loan caps, and applying it before you make an offer ensures the deal has enough margin to absorb financing costs and still return a profit.
