Markets have shifted since the pandemic peaks, but fix-and-flip remains a viable, and profitable, investment strategy. In 2024, investors flipped nearly 298,000 homes nationwide (down 7.7% year over year), yet those deals still made up roughly 7.6% of all sales. Despite the slowdown, profits rose: most flips yielded around $72,000 in gross profit, a solid 29.6% ROI.
Even now, investor activity is strong. 89% of flippers plan at least one project this year, and nearly 32% describe current demand as “very strong,” especially in regions like the Northeast (59%).
That means there’s real work and real opportunity for brokers who know how to navigate the Fix and Flip loan process. With the right financing strategy, you can help clients act fast, stay organized, and maximize returns in 2025 and beyond.
What Is a Fix and Flip Loan?
A Fix and Flip loan is short-term funding for those who want to buy, renovate, and resell an investment property. These loans often handle both the purchase price and renovation costs. Unlike traditional mortgages, they’re designed around a project timeline and the home’s potential after-repair value (ARV).
The Fix and Flip loan process is built to move quickly and align with construction milestones, making it a strong fit for value-add real estate strategies.
When a Fix and Flip Loan Makes Sense
These loans work well when your client:
- Has found an outdated or distressed property with solid resale potential
- Needs to close quickly in a competitive market
- Plans to complete renovations and sell quickly
- Has a scope of work and budget in hand, or a contractor ready to go
Brokers familiar with the Fix and Flip loan process can help clients navigate everything from funding timelines to draw documentation and disbursements.
Who These Loans Are For
The Fix and Flip loan process supports a wide range of investors, not just seasoned professionals. LendSure works with clients at all experience levels.
Some typical borrower profiles:
- First-time investors looking for a simple entry point
- Experienced flippers managing multiple projects at once
- Contractors ready to flip using their own crews
- Strategic buyers targeting off-market, foreclosure, or auction deals
If your client has a viable plan, you can help them make it happen.
Fix and Flip Loans: Pros and Cons
Pros
- Quick closings, often within a few days
- Funds both acquisition and renovation
- Interest-only payments support cash flow
- Based on ARV, not current condition
- Designed for project-based investing
Cons
- Higher rates than traditional loans
- Short terms (typically 12 months)
- Requires progress documentation for draws
- Cost overruns or delays can cut into profits
Knowing the pros and risks helps you set the right expectations throughout the Fix and Flip loan process.
How LendSure’s Fix and Flip Loan Process Works
LendSure keeps things simple and efficient for brokers and their clients. Here’s what the Fix and Flip loan process looks like from start to funding:
- Application
We keep the application simple. It’s shorter than a standard URLA and focused on what we actually need to evaluate the deal.
- Term Sheet
Once we’ve reviewed the basics, your client gets a term sheet quickly. Since there’s no need for a loan estimate or disclosures, this step doesn’t fall under TRID, which helps speed things up.
- Signed Docs & Supporting Info
After your client reviews the terms, they send back the signed sheet along with any supporting documentation so we can move forward.
- Underwriting
The account manager sends everything to underwriting, where we review the file and issue a conditional approval based on the documents provided.
- Clear to Close
Once all conditions are met, we’ll coordinate a clear to close. At this point, the loan is ready to fund and your client is set to move ahead.
- Funding
Renovation funds are released through draws. We verify completed work through a third-party inspection before reimbursing based on the loan-to-cost structure.
Throughout the Fix and Flip loan process, brokers stay in close contact with our team, helping clients stay on track and avoid funding delays.
Why Brokers Choose LendSure
We make the Fix and Flip loan process work for you, not the other way around. With fast term sheets, flexible credit guidelines, and support that picks up the phone, we help brokers close more deals with less friction.
Program Highlights:
- Available in all 50 states
- Credit scores as low as 660
- No prior flipping experience required
- Up to 90% of purchase cost financed
- Up to 100% of renovation costs (based on experience)
- Max loan: 90% total project cost or 70% ARV
- 12-month interest-only terms
A Few FAQs for Brokers
What kinds of properties qualify?
Non-owner-occupied homes including single-family, condos, townhomes, PUDs, and up to 4-unit multifamily.
How long does it take to close?
We typically issue term sheets within hours, and our teams are structured for fast turnarounds.
How does the draw process work?
Renovation funds are released in stages as work is completed. After each phase, the client submits a draw request with supporting documentation, like inspections or invoices. We review the request, confirm the work is done, and reimburse based on the approved loan structure.
Where can I find referral sources for Fix and Flip loans?
Look to places where active investors spend their time, real estate investment clubs, local meetup groups, flipping seminars, and conferences. Online communities like LinkedIn and Facebook groups are also great spots to connect with potential referral partners and stay in the loop on local opportunities.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently-owned property.
Are you ready to benefit from a common-sense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.
