A fix-and-flip loan is short-term financing used to buy — and often renovate — a property you intend to improve and sell. It's secured by the property itself, sized to both the purchase price and the projected after-repair value, and structured around a fast close and a clear exit: the sale. Because it's temporary and speed-sensitive, lenders underwrite the project and the investor's plan, not just a credit score.
Purchase plus rehab: many fix-and-flip loans fund a portion of the purchase and hold back rehab funds released in draws as work is completed. That keeps the lender's exposure tied to real progress and gives you renovation capital without a second facility.
After-repair value (ARV): lenders size the loan against what the property should be worth once the work is done — the ARV — not just today's as-is value. A credible scope of work and comparable sales matter as much as the purchase price.
Speed and certainty win deals: in a competitive purchase, the seller takes the offer that funds, not the one waiting on a committee. A fast term sheet and a lender who closes on time are often worth more than a slightly lower rate.
The exit is the whole point: a fix-and-flip loan is short-term by design, and the exit — the sale, or a refinance into a rental loan if you decide to hold — is what a good lender underwrites on day one. At BuildUp, we lend on fix-and-flip projects across nine Western states, secured by the real estate and structured around your plan.
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Related: Fix & flip loans · Lending in Texas