Lima One Capital: Fix and flip loans
Use these comparisons for planning; final eligibility, pricing and terms are set by the provider.
Hard Money Property Loans: key parameters
| Product dimension | What to compare |
|---|---|
| Purpose | Usually a business-purpose real-estate investment transaction. |
| Underwriting | Property, budget, borrower experience, liquidity and exit may all matter. |
| Cost | Rate, points, legal costs, inspection fees and extensions. |
| Funding | Distinguish the initial advance from rehabilitation draw commitments. |
| Repayment | Maturity and exit requirements are central to the offer. |
Compare committed funds with cash available at closing
A commitment that includes renovation funding is not necessarily cash disbursed on day one. Read the draw schedule, reimbursement conditions and inspection process. Contractors may require payment before a draw can be released, creating a liquidity need even when the overall budget appears financed.
Compare a sale exit with a refinance exit. An optimistic after-repair valuation is not a guaranteed sale price or refinance value. Keep consumer-purpose residence financing separate from investment-purpose lending and confirm the applicable disclosures with the actual lender.
Eligibility and property review for this route
Providers differ in eligible property types, experience requirements, leverage, borrower guarantees and documentation. Ask whether valuation is based on current condition, completed value or another defined basis. The relevant amount may be loan-to-cost as well as loan-to-value; they are not interchangeable.
Costs and Payment Terms for Hard Money Property Loans
Include points, legal charges, inspection or draw fees, extension costs and the basis on which interest accrues. Identify whether interest applies only to drawn funds or also to undrawn committed amounts. A teaser monthly payment can hide a large balance due at maturity.
Illustration: a $250,000 total commitment with $200,000 advanced at acquisition and $50,000 reserved for repairs does not give the borrower $250,000 at closing. A $20,000 first contractor invoice can require interim cash if the loan reimburses work only after inspection.
Compare this route with the alternatives
| Financing route | When to compare it |
|---|---|
| Hard Money Property Loans | A short-term investment file needs a property-backed structure. |
| Fix and Flip Property Loans | Acquisition and renovation draws are tied to a sale strategy. |
| DSCR Rental Property Loans | A stabilized rental may suit a longer-term rental-income structure. |
Documents and information for the actual provider
| Document or information | How it is used |
|---|---|
| Entity and guarantor details where relevant | Keep the current version and confirm the actual provider’s requirements; no upload is requested here. |
| Purchase contract | Keep the current version and confirm the actual provider’s requirements; no upload is requested here. |
| Scope of work | Keep the current version and confirm the actual provider’s requirements; no upload is requested here. |
| Budget | Keep the current version and confirm the actual provider’s requirements; no upload is requested here. |
| Valuation evidence | Keep the current version and confirm the actual provider’s requirements; no upload is requested here. |
| Experience | Keep the current version and confirm the actual provider’s requirements; no upload is requested here. |
| Exit analysis | 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
Short maturities, uncertain renovation costs and dependence on an exit create material risk. Never describe a personal residence as an investment property to obtain a different underwriting process.
Use a complete project budget rather than the acquisition price alone. Compare cash invested, financed advances, interest, points, construction carrying costs and sale or refinance assumptions. A seemingly fast approval has little value if draw delays or a weak exit undermine the project.
Questions About Hard Money Property Loans
Does hard money mean no income or documentation review?
Not as a universal rule. The provider must evaluate the transaction under its program and applicable requirements. Ask for a written list rather than relying on a marketing label such as no-doc.
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
Private funding
A private funding source does not remove underwriting, documentation or repayment obligations. Compare the complete cost and the exit required by the agreement.
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: Understand the different kinds of loans available — Loan structures, terms and repayment risks; not provider-specific eligibility.
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.