Property & scope
Explain what exists today, what will change and why the work supports the intended exit.
BUSINESS-PURPOSE REAL ESTATE FINANCING · FIX & FLIP / RENOVATION
See the potential.
Plan the transformation.
Bring the acquisition, improvement scope and proposed resale or refinance into one business-purpose financing discussion.
THE RIGHT STARTING POINT
A property.
A purpose. A plan.
Florida and other-state inquiries are reviewed individually. Submission does not establish eligibility or approval.
Budget & execution
Separate acquisition, hard costs, soft costs, reserves and contingency. Identify the contractor and work schedule.
Value & repayment
Support both current value and estimated completed value with evidence, then account for carrying and selling costs.
THE FINANCING FRAMEWORK
Know the
starting parameters.
10–12%Annual borrower interest
24Month initial term · interest-only
70%Maximum LTV · land & construction 50%
2–6%Origination fee
Indicative parameters only. Final terms depend on the property, valuation basis, capital source, underwriting and documents. Loans are interest-only with an initial 24-month term. The outstanding principal is due as a balloon payment at maturity. Borrowers may reduce principal or repay the loan in full at any time without a prepayment penalty. In rare and extenuating circumstances, a loan review may take place 60 days before maturity to consider a potential extension of 12 to 24 additional months. Borrower payment history is part of that review. Any extension requires approval and a written agreement; a review does not guarantee an extension.
Explore an interest-only illustration →MAKE THE FIRST REVIEW COUNT
Bring the facts
into focus.
Begin with what you know. Identify estimates and unresolved items clearly. Supporting files can be requested after the initial review.
Open the borrower checklist →- Purchase contract and property photographs
- Itemized scope, contractor estimate and contingency
- Requested financing, borrower cash and existing liens
- Current value and evidence supporting completed value
- Work duration, planned exit and relevant experience
COMMON QUESTIONS
Understand
the details.
Can you consider a second-position mortgage?
Financing generally requires a first-position mortgage lien. Second-position financing may be considered after reviewing the existing first mortgage, available equity and overall transaction, subject to approval. Existing loan terms, total debt secured by the property, valuation and title must be reviewed. Availability and final terms are subject to capital-source approval and documentation.
Is estimated completed value the same as approved collateral value?
No. Estimated after-repair value is an underwriting input. The accepted valuation basis and leverage are determined for the transaction.
How are renovation funds released?
Any holdback, draw schedule, inspections, approvals and release conditions must be established with the capital source and reflected in the documents.
Can the exit be a refinance instead of a sale?
Yes, it can be discussed. The plan should address expected rent or property use, timing and the requirements of the future financing source.