Fix & Flip Loans: 10% Down & 100% Rehab Financing – How It Works
Imagine this—you’ve got an amazing fix & flip opportunity and cash from an investor lined up. The numbers are perfect, you’ve lined up contractors, and you’re just days from closing.
Then, out of nowhere, your investor backs out. The deal is about to fall apart, and you’re scrambling for a solution. That’s exactly what happened to one of my clients.
His agent referred him to me, and we put together a 10% down fix & flip deal pretty fast—and we closed the deal in just 10 days with 10% down.
The best part? He still made a $123,000 profit on the flip in just 4 months.
Here’s how we did it
Fix & Flip Loans: 10% Down & 100% Rehab Financing – How It Works
What is Flipping Houses?
Flipping houses is a real estate investment strategy where an investor purchases a property, renovates or improves it, and then sells it for a profit. The goal is to buy low, enhance the property’s value through repairs or upgrades, and sell high, usually within a short period. Flipping houses typically involves understanding market trends, budgeting for renovations, and executing timely sales to maximize returns.
Flipping houses is a proven way to build wealth in real estate, but most people think they need huge down payments and cash for renovations. The good news? Private fix & flip loans allow you to get started with just 10% down while financing 100% of the renovation costs—meaning you can leverage other people’s money to maximize your profits.
What Is a Fix & Flip Loan?
A fix & flip loan is a short-term, asset-based loan designed for real estate investors who want to buy, renovate, and sell properties for a profit. These loans are funded by private or hard money lenders who care more about the property’s potential value (After Repair Value or ARV) than the borrower’s income or credit score.
Unlike traditional mortgages, fix & flip loans allow investors to purchase distressed properties, fund renovations, and resell them quickly—without tying up personal capital.
Key Features of Fix & Flip Loans:
- Low Down Payment: Just 10% of the purchase price (compared to 20-30% with traditional lenders)
- 100% of Construction Costs Covered: No need to fund renovations out of pocket
- Fast Closing: Loans can close in 7-14 days, unlike banks that take 30+ days
- Short-Term Loan: Typically 12-18 months, designed for flipping properties quickly
- Approval Focuses on the Deal, Not Just the Borrower: Lenders look at the profitability of the project, not just credit scores or income
Why Private Money Works for Fix & Flip Deals
- 10% Down vs. 20-30% with Banks – More leverage, less capital required
- 100% Rehab Financing – Keep your cash for more deals
- Fast Closings (7-14 Days) – Because deals don’t wait
- Approval Based on the Property, Not Just the Borrower – It’s about the numbers
How to Qualify for a Fix & Flip Loan
The good news? You don’t need perfect credit or a huge income to qualify for these loans. Here’s what you’ll need:
- Experience – Most lenders like to see the borrower has completed a few projects before this one.
- A Strong Deal – Lenders care more about the property’s ARV and potential profit margin.
- Rehab Budget & Timeline – Be prepared with a detailed renovation scope of work.
The Payoff: $123,000 Profit on the Flip
Fast forward 4 months later—the renovations were complete. After paying off the loan, closing costs, and expenses, he walked away with a six-figure profit.
- Total Profit: $123,000+
- Time to Flip: 4 Months
- Would he do it again? Heck yes! We are looking!
I’m Garrick Werdmuller, a mortgage broker who helps investors secure fast, reliable, and high-leverage fix & flip loans. If you’re ready to take your real estate business to the next level, let’s connect and make it happen. 🚀
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All loan approvals are conditional and not guaranteed and subject to lender review of all information. Loan is conditionally approved when lender has issued approval in writing, but until all conditions are met, loan cannot be funded. Specified rates and [products may not be available to all borrowers. Rates subject to change according to market conditions and agreed upon lock times set by borrower. Fresh Home Loan Inc. is an Equal Opportunity Mortgage Broker in California. This licensee is performing acts for which a real estate license is required. Fresh Home Loan, Inc. is licensed by the California Department of Real Estate #02137513 NMLS # 2124104
