Max Allowable Offer
Run the 70% rule on your numbers before you write a contract.
Open MAO calculator →Fix and Flip Loans.
Buy. Rehab. Exit Clean.
Flexible financing for investment-property purchases and renovations, evaluated around the property, project plan, and exit strategy.
At a glance
Program Details at a Glance
Six essentials for fix and flip financing. Tap a tile for supporting detail — final terms are confirmed after the property, project scope, borrower, and exit strategy are reviewed.
Loan Purpose
- Buy, renovate, and exit an investment property
- Business-purpose only — not owner-occupied
Purpose
Short-term capital to buy and renovate non-owner-occupied property for resale or refinance — underwritten on the project.
- Use — acquisition plus renovation
- Occupancy — business-purpose only
- Markets — Cleveland, OH · South Florida
Financing Structure
- Debt path or qualifying joint-venture path
- Structure follows the deal economics
Structure
Most deals use flip debt (you keep profit). Strong projects may fit a qualifying JV instead.
- Debt path — cash in; you keep upside
- JV path — only when the project qualifies
- Not automatic — path chosen after review
Leverage
- Set per transaction against cost and ARV
- Stronger spreads support stronger structures
Leverage
Coverage of purchase and rehab depends on discount, budget realism, and ARV support — confirmed after full review, not a rate card.
- Inputs — cost basis, ARV, and risk
- Screen — total project cost vs. ARV
- Output — structure and cash required
Rehab Draws
- Renovation funds release against completed work
- Not a lump sum at closing
Draws
Purchase funds at closing. Rehab capital releases in stages after verified completed work — not as a lump sum.
- Closing — acquisition funds
- During rehab — draws on verified stages
- Budget — line-item by trade preferred
Eligible Properties
- Investment residential and select mixed-use
- Must support a defensible ARV
Collateral
Typical fit: SFR, many condos/townhomes, and 2–4 unit. Owner-occupied, raw land, and ground-up use other programs.
- Usually fits — SFR, 2–4 unit, many condos
- Other path — multifamily, commercial, ground-up
- Hard stop — no defensible ARV comps
Timing and Qualifications
- Review starts with a complete project file
- Approval and funding are separate steps
Process
Same-day approval on a complete file (term sheet, not money). Funding in 3–5 business days after approval — subject to valuation and title.
- Complete file — price, budget, ARV, basics
- Qualifications — deal, experience, exit
- Credit — one input, not the only gate
Approval timing depends on file completeness; approval is not funding. Funding timing depends on valuation, title, and third-party reports. Subject to underwriting and final approval.
Two structures
Choose Your Funding Path
We start with the deal and tell you which structure fits. The joint-venture option is available only for qualifying projects and participants — not every borrower and not every property.
Traditional Fix and Flip Financing
- For — operators with cash who want full upside
- Capital — you contribute a portion of total cost
- Repayment — loan terms; you keep resale profit
Path one · Debt
Capital covers a share of purchase and rehab; you fund the balance. Rehab in draws. You keep resale profit.
- Benefit — full upside stays with you
- Limit — cash required into the deal
- Terms — confirmed after full review
Qualifying Joint-Venture Structure
- For — strong deals where cash into basis is limited
- Capital — up to 100% when qualified
- Structure — shared economics, not a blank check
Path two · Joint venture
When qualified: up to 100% of purchase, rehab, and closing if total cost is within 70% of ARV.
- Gate — total cost within 70% of ARV
- Limit — profit shared; not automatic
Up to 100% of purchase, rehab, and closing applies only to qualifying joint-venture transactions within 70% of ARV. Not all borrowers or projects qualify. We will recommend traditional flip debt when it better fits your cash position and goals.
Underwriting focus
How We Evaluate a Deal
Because a flip is repaid from the exit, review concentrates on whether the finished property can carry the project with room to spare.
Borrower and Experience
- Can this operator execute this scope?
- Experience is a risk factor — not always a hard stop
Operator
Track record is weighed against scope complexity — experience is a risk factor, not always a hard stop.
- Look for — prior projects, entity, bandwidth
- Newer operators — clearer scope, stronger ARV cushion
- Scaling — concurrent deals raise capacity review
Property and Market
- Condition, location, and buyer demand
- Comps must support the exit price
Asset
Distressed or dated inventory is expected. What is not expected is an exit price the local market will not support. Comparable sales drive confidence in the finished value.
- Purchase — real contract or LOI basis
- Condition — scope must match the house
- Market — Cleveland and South Florida focus
ARV and Renovation Budget
- Defensible ARV plus line-item rehab
- Total cost against value is the screen
Numbers
After-repair value must rest on comps an appraiser would respect. Rehab needs line items by trade and contingency — not a round number. Purchase plus rehab is tested against ARV before structure is finalized.
- ARV — evidence first, optimism second
- Budget — trades, contingency, photos help
- Tools — MAO · Deal Analyzer
Exit Strategy
- Resale or refinance must be credible
- Timeline and holding cost matter
Takeout
A plan to list and hope is not enough. Resale needs a market-supported price; refinance needs a takeout that underwrites. Longer timelines raise holding cost and risk.
- Resale — price and days-on-market realism
- Refinance — rent and value must support takeout
- Fallback — stress case if the sale softens
Deal math
Simple Deal-Math Example
The 70% rule is a screening heuristic — not a quote and not a promise of leverage.
ARV × Target Percentage − Renovation Costs = Target Purchase Range
A common screen keeps purchase plus rehab within roughly 70% of a defensible after-repair value, leaving room for selling costs, holding costs, financing, and profit.
Worked Example
- ARV $300,000 · 70% ceiling $210,000
- Rehab $45,000 → target purchase about $165,000
Illustrative
Not a quote. ARV $300k → 70% = $210k − $45k rehab ≈ $165k target purchase. At $160k buy, cost is ~68% of ARV.
- Screen — worth underwriting, not a guarantee
- Leverage — confirmed per transaction
- Tools — MAO and Deal Analyzer below
Run your numbers: Max Allowable Offer Calculator · Deal Analyzer · Understanding ARV
Process
How Funding Works
Three clear steps from first look to draws. Tap each step for documents, review focus, and what happens next.
Submit the Property
- Address, purchase price, rehab estimate, ARV
- Enough for a first read — not a full application
Step 1
Send the basics so we can see whether the flip pencils before you invest weeks in paperwork.
- Include — contract/LOI, line-item budget if ready, comps or ARV support
- Photos — help confirm scope matches budget
- Next — preliminary screen of cost vs. value
Review the Deal
- ARV, budget realism, and exit credibility
- Structure recommended after the screen
Step 2
We test cost vs. ARV and whether you can execute the scope — then confirm or redirect quickly.
- Focus — value, budget, timeline, operator
- Outcome — debt or JV path
- Redirect — other programs when flip is wrong
Approve, Close, and Manage Draws
- Approval, then funding, then staged rehab capital
- Title and valuation set real-world timing
Step 3
On a complete submission: same-day approval (credit decision or term sheet). Funding in 3–5 business days from an approved, complete file. Acquisition at closing; rehab in draws against verified work.
- Full file — entity docs, valuation, title path
- Close — purchase funds
- Draws — release as stages complete
Approval timing depends on file completeness; approval is not funding. Funding timing depends on valuation, title, and third-party reports.
Fit check
Is Your Deal a Fit?
Use these tiles to self-screen before you submit. Exceptions and edge cases live on the back of each card.
Strong Fit
- Discount to ARV with a realistic rehab plan
- Clear resale or refinance exit
Green
Investment property, business purpose, supported ARV, line-item budget, and an operator whose experience matches the scope.
- Collateral — SFR, many condos, 2–4 unit
- Math — purchase + rehab leave margin under ARV
- Exit — comps or refinance underwrite
Possible Fit
- Heavier scope or thinner margin — still discussable
- May need more documentation or a different path
Yellow
Full renovations, mixed-use, or operators newer to a scope level can still work when the spread and plan are strong. Expect deeper review of budget contingency and track record.
- Often — more comps, photos, and contractor detail
- Sometimes — redirect to JV or another program
- Always — honest first conversation
Usually Not Eligible
- Owner-occupied intent or no defensible ARV
- Raw land and pure ground-up belong elsewhere
Red
Not for owner-occupied homes, raw land, or pure ground-up. No comps means no underwriteable ARV.
- Instead — ground-up, commercial, rental
- Common declines — soft ARV, no contingency, no exit
- Still talk — wrong structure ≠ dead deal
Documents You Will Need
- Contract, budget, ARV support, photos
- Entity and experience basics
File
A complete submission is what makes a fast review possible.
- Purchase — contract or LOI
- Rehab — line-item budget by trade
- ARV — comparable sales support
- Evidence — photos or inspection
- Entity — experience summary and entity docs
FAQ
Essential Questions
Focused on submitting and financing a fix-and-flip project. More answers live in the full FAQ library.
How quickly can a deal be reviewed?
Same-day approval on a complete submission — a credit decision or term sheet, not funded money. Funding runs 3–5 business days from an approved, complete file and depends on valuation, title, and third-party reports. A file missing ARV support or carrying only a lump-sum rehab number cannot be approved same day.
How are renovation funds released?
In draws against verified completed work. Purchase funds typically at closing; rehab does not arrive as a lump sum you hold. You request a draw for a finished stage, progress is confirmed, and that portion is released.
Is prior flipping experience required?
Not always. Experience is weighed against the scope. A first-timer with a cosmetic rehab, strong ARV spread, and realistic budget is often more straightforward than an experienced operator with a thin, complex gut. See first-time investors.
Can financing include the renovation budget?
Yes — that is a core purpose of fix and flip financing. Renovation capital is typically staged in draws. How much of purchase and rehab a structure covers is confirmed after the property, scope, borrower, and exit are reviewed.
How is ARV determined?
After-repair value should rest on comparable sales that support the finished condition — not aspirational list prices. It is the number the whole flip screen hangs on. Read how ARV is determined.
What credit information is reviewed?
Credit is one input alongside deal economics, experience, and exit — not the single gate it is in many conventional loans. Specific thresholds are confirmed per transaction after review rather than published as a universal minimum.
What exit strategies are acceptable?
Resale at a market-supported price, or refinance into a longer-term hold when the takeout underwrites. “List it and see” is not a plan. BRRRR-style exits should also make sense as a rental; details live on the rental financing page.
How does the qualifying JV option work?
On qualifying joint-venture transactions, capital can cover up to 100% of purchase, rehab, and closing when total project cost is within 70% of a defensible ARV. Economics are shared; not every borrower or deal qualifies. Full structure notes: 100% purchase and rehab.
More questions: complete FAQ library
Have a Property Under Review?
Send us the purchase price, renovation estimate, projected value, and exit strategy. We’ll review the project and help determine which available structure fits it best.
Fix and flip financing is for business-purpose, non-owner-occupied transactions only. Leverage, loan size, term, rate, points, and credit criteria are set per transaction and by the capital resource carrying the file, and are confirmed after the property, project scope, borrower, and exit strategy are reviewed. Up to 100% of purchase, rehabilitation, and closing costs applies only to qualifying joint-venture transactions when total project cost is within 70% of defensible after-repair value, and is subject to ARV support, documentation, total project economics, program availability, underwriting, property eligibility, borrower qualification, and final approval. Not all transactions qualify. Same-day approval means a credit decision or term sheet on a complete submission and is not funding; funding timing of 3–5 business days is measured from an approved, complete file and depends on valuation, title, and third-party reports. Figures in examples, including the 70% rule illustration, are illustrative only and are not a quote, an offer, or a representation of terms available for any specific transaction. Program details may change. Real Estate Capital Resources provides capital path guidance and access to funding relationships; all financing is subject to approval.