Fix and Flip

A Fix and Flip Loan, also known as hard money or bridge loan, is a specific type of asset-based loan financing in which a borrower receives funds secured by the value of a parcel of real estate.

At Buskull Properties, LLC, we work with lenders that specialize in loans for fix-n-flip property opportunities. Call or email us today! We can get you the best rate quote from one of these preferred lenders!

Fix and Flip loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Hard money is similar to a bridge loan, which usually has similar criteria for lending as well as cost to the borrowers.

The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing, whereas hard money often refers to not only an asset-based loan with a high-interest rate but possibly a distressed financial situation, such as arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings are occurring.

Many Fix and Flip mortgages are made by private investors, generally in their local areas. Typically, the credit score of the borrower is not important, as the loan is secured by the value of the collateral property. Typically, the maximum loan-to-value ratio is 65-70%. That is, if the property is worth $100,000, the lender would advance $65,000-70,000 against it. This low LTV provides added security for the lender in case the borrower does not pay, and they have to foreclose on the property.