What is a fix & flip loan?
A fix-and-flip loan is short-term financing for a non-owner-occupied real estate investment where the borrower plans to acquire, renovate, and then sell or refinance the property. Unlike a conventional owner-occupied mortgage, the review typically places significant weight on the property, the complete project budget, the expected value after renovation, the investor's execution plan, and the proposed exit.
Draw Key Capital helps organize these business-purpose scenarios for review against lender criteria. The goal is to identify a financing structure that matches the actual project rather than force every deal into one credit box.
Working on a fix & flip anywhere in California? Start with our statewide California financing guide. Fresno-area investors can also use the Fresno hard money loan page for local context.
How lenders commonly evaluate a flip
The most important numbers usually start with the acquisition cost, renovation budget, current value, requested loan amount, and expected after-repair value. Different capital sources apply different leverage caps and eligibility rules, so the same property can fit one program and fall outside another.
What to submit for a faster review
- Property address and property type
- Executed purchase contract or acquisition terms
- Purchase price and requested loan amount
- Detailed rehab scope and budget
- Current value and support for the estimated ARV
- Borrower entity and relevant project experience
- Liquidity or funds-to-close information when requested
- Target closing date and intended sale or refinance exit
The cleaner the initial package is, the easier it is to identify missing items before they become closing delays.
Hypothetical California fix & flip scenario
$240,000 acquisition
An investor contracts a dated single-family investment property in California and wants short-term acquisition financing.
$55,000 rehab plan
The scope includes kitchen, bath, flooring, paint, fixtures, exterior work, and deferred maintenance.
Sell or refinance
The investor expects to complete the work and either sell the property or refinance into long-term rental financing if the hold strategy makes sense.
Illustrative example only—not a quote, approval, commitment, valuation, or statement of available leverage. Actual terms depend on the borrower, property, lender, documentation, program, and market conditions.
How renovation funding often works
Depending on the lender and program, some renovation funds may be controlled and released through draws as work is completed. Draw procedures, inspection requirements, reimbursement timing, minimum draw sizes, holdbacks, and eligible line items vary. Investors should understand the draw process before closing because contractor payment timing can affect project cash flow.
For heavier projects, the lender may also care about permits, contractor experience, contingency reserves, structural work, property habitability, and whether the scope is truly a rehab rather than a ground-up construction project.
Plan the exit before you close
A flip intended for resale has a different risk profile from a BRRRR-style project intended for long-term ownership. If the plan is to refinance after renovation, it helps to think through future DSCR eligibility, expected rent, seasoning rules, valuation, reserves, and the amount of cash that may remain in the deal. For rental exits, review our DSCR rental loan page before the acquisition so the short-term and long-term financing strategies are aligned.
Fix & flip financing across California
California investors operate in very different markets, from high-basis coastal acquisitions to value-add opportunities in inland cities and smaller regional markets. Draw Key Capital reviews eligible business-purpose fix & flip scenarios statewide and organizes each request around the actual purchase, rehab, value, experience, liquidity, timeline, and exit.
Location matters because values, construction costs, permitting, sale timelines, and lender footprints vary across California. That is why a specific property review is more useful than assuming every deal follows the same leverage or pricing model.
From scenario to closing
Property, price, rehab, values, requested proceeds, borrower experience, timing, and exit.
Compare leverage, property, borrower, and program requirements with relevant capital-source criteria.
Upload contract, budget, entity, liquidity, experience, insurance, title, and valuation items as required.
Qualified scenarios can move to preliminary terms, lender underwriting, closing conditions, and funding.