In the real estate investment world, speed and capital structure determine profitability. You can find a distressed property listed at $0.60 on the dollar, but if you cannot secure quick, reliable financing to lock up the deal and fund the renovation, the opportunity disappears.
Fix and flip financing requires a specialized approach that conventional bank mortgages cannot accommodate. Partnering with an experienced investment property loan consultant like Matt Dean ensures your deals move fast, stay profitable, and cross the finish line smoothly.
Traditional mortgage lenders operate on rigid guidelines designed for move-in-ready residential homes. When evaluating a flip, standard banks present major roadblocks:
To scale a fix and flip business, you need funding designed specifically for real estate investors: short-term debt that covers both acquisition and rehab costs, approved on After Repair Value (ARV) rather than current property condition.
Understanding how leverage works in rehab financing helps you protect your profit margins.
Top-tier fix and flip loans cover up to 85%–90% of the purchase price and 100% of the renovation budget. By minimizing out-of-pocket cash required at closing, you preserve liquidity for holding costs, unexpected repair overruns, or concurrent property acquisitions.
Lenders evaluate the deal based on what the home will be worth after renovations are complete. Most programs capped funding at 70%–75% of the ARV.
Formula:
$\text{Max Loan Amount} = \text{ARV} \times 0.75$
If a property has an estimated ARV of $400,000, your total leverage across purchase and rehab typically maxes out at $300,000.
During the rehab period (typically 6 to 12 months), you only pay interest on the drawn funds or outstanding balance, keeping monthly holding costs manageable. Renovation funds sit in an escrow account and release in stages ("draws") as contractors complete project milestones.
Finding a loan consultant who understands investor metrics makes a measurable difference in deal success. Matt Dean brings over two decades of industry expertise, giving real estate investors a distinct advantage in today’s competitive market.
As an independent loan broker, Matt Dean does not push a single, rigid bank product.
Whether you need hard money for an aggressive 90-day flip, a hybrid loan, or a long-term DSCR (Debt Service Coverage Ratio) loan to transition a rehab into a rental property, Matt builds funding structures aligned with your exit strategy.
When submitting offers on distressed properties, sellers prioritize speed and certainty. Matt provides legitimate pre-approval credentials and fast funding mechanisms so you can present strong, cash-equivalent offers.
| Feature | Conventional Bank Loan | Hard Money / Fix & Flip Loan | DSCR Rental Loan |
| Primary Metric | Personal Income & W-2 | ARV & Property Margin | Property Cash Flow ($1.0+$ DSCR) |
| Time to Close | 30–45 Days | 7–14 Days | 14–21 Days |
| Rehab Funding | Rare / Limited | Up to 100% of Budget | Refinance After Rehab |
| Best Used For | Primary Residences | Short-Term Flips & Heavy Rehabs | Long-Term Buy & Hold |
Don't let lack of quick capital stall your investment growth. Connect with Matt Dean to structure your fix & flip funding, secure competitive rate packages, and scale your portfolio.