Lima One Capital: Fix and flip loans
Use these comparisons for planning; final eligibility, pricing and terms are set by the provider.
Fix and Flip Property Loans: key parameters
| Product dimension | What to compare |
|---|---|
| Project | Acquisition, eligible rehabilitation and a defined sale exit. |
| Draws | Repair funds may be held back and released after conditions are met. |
| Budget | Include contingency, permits, carrying costs and selling expenses. |
| Leverage | Loan-to-cost and after-repair-value measures are not the same. |
| Maturity | A delayed renovation or sale can create extension and repayment risk. |
Build the cash gap between contractor invoices and draws
Obtain the draw requirements before signing the contractor schedule. Reimbursement financing can require the investor to advance funds for work before inspection and release. Include interest on the actual funded balance when that is how the agreement charges interest; do not assume interest always applies only to drawn funds.
Stress-test a lower resale value and a longer project. A project that repays comfortably at the anticipated sale price can become tight after selling costs, an extra month of carrying expenses and a repair overrun. The lender’s valuation is not a buyer commitment.
Eligibility and property review for this route
The provider may review project experience, contractor qualifications, the property’s current condition, completed-value assumptions and the proposed scope. Confirm eligible ownership and business purpose. Do not assume the full renovation budget will be advanced at closing.
Costs and Payment Terms for Fix and Flip Property Loans
Ask how draws are requested, inspected and released. Identify interest on drawn versus committed funds, origination points, inspection fees, retainage, minimum interest and extension charges. A low initial payment can reflect a small initial draw rather than a low total project cost.
Illustration: $200,000 acquisition, $50,000 repairs, $5,000 contingency, $10,000 financing and carrying costs, and $18,000 selling costs total $283,000. A $300,000 sale leaves $17,000 before taxes and any omitted expenses. A $20,000 price reduction would eliminate that modeled margin.
Compare this route with the alternatives
| Financing route | When to compare it |
|---|---|
| Fix and Flip Property Loans | The plan is renovation followed by a sale. |
| Hard Money Property Loans | Compare the broader short-term property-backed structure. |
| DSCR Rental Property Loans | An alternative exit is holding the completed property as a rental. |
Documents and information for the actual provider
| Document or information | How it is used |
|---|---|
| Purchase contract | Keep the current version and confirm the actual provider’s requirements; no upload is requested here. |
| Detailed scope and contractor bids | Keep the current version and confirm the actual provider’s requirements; no upload is requested here. |
| Project schedule | Keep the current version and confirm the actual provider’s requirements; no upload is requested here. |
| Permits as required | Keep the current version and confirm the actual provider’s requirements; no upload is requested here. |
| Contingency funds | Keep the current version and confirm the actual provider’s requirements; no upload is requested here. |
| Valuation and resale assumptions | Keep the current version and confirm the actual provider’s requirements; no upload is requested here. |
These are preparation categories, not a demand to upload documents here. For a covered mortgage, documents cannot be imposed as a precondition to providing a Loan Estimate after the required application information is received. CFPB: Information required for a Loan Estimate
From product selection to a written quote
- Use the comparison selector to identify the transaction and the relevant alternatives. No credit decision is made.
- Run the linked calculator with your own amount, rate, term and expenses. Label assumptions and retain a reserve.
- Confirm the actual provider’s legal identity, state coverage and acceptance of the property and documentation route.
- Request written terms and compare fees, payment obligations and the remaining balance at your expected exit. Use the provider’s secure process for a real application.
Repayment risk and when to choose another route
Cost overruns and a delayed exit can consume projected profit. The value of completed work is uncertain, and a provider may not fund every change in scope.
Work backward from a realistic sale outcome after selling costs, not from an optimistic renovated listing price. Add permits, insurance, utilities, taxes, contingencies and financing carry. Then test a delayed sale and a smaller resale price to see whether the equity contribution remains adequate.
Questions About Fix and Flip Property Loans
Are renovation funds always available immediately?
No. They may be held and released through a draw process after milestones or inspections. Ask who funds work before reimbursement and what documentation is required for each release.
Does the comparison start a loan application?
No. The tools compare product types and entered assumptions. They do not contact lenders, reserve funds, pull credit or approve an application.
Select the next financing step
Program references and comparison sources
Lima One Capital: Fix and flip loans — Provider example of renovation draw finance. No pricing, turnaround promise or partner relationship is adopted.
CFPB: Information required for a Loan Estimate — Six information items for covered transactions; exceptions include HELOCs and reverse mortgages. Do not demand documents as a precondition.
Check the linked source for its effective date and applicable scope. A source link is not a lender partnership or an individual offer.