Fix & Flip Bridge Loans for Real Estate Investors

How Fix & Flip Financing Works

Fix and flip loans — also called bridge loans or hard money loans — are short-term, interest-only loans designed around the investor's timeline. You borrow to acquire the property, draw down renovation funds as the work progresses, then either sell or refinance into a long-term rental loan when you're done.

The key difference from a conventional mortgage: these loans are underwritten on the After Repair Value (ARV) — what the property will be worth when renovations are finished — not its current as-is condition. This is what allows investors to finance a property that needs significant work, where a conventional lender would decline outright.

Rehab funds are held in escrow and released in stages (draws) as completed work is verified by inspection. You only pay interest on the outstanding balance — not the full loan amount — so your carrying cost stays low while the project is in progress.

Loan Parameters

The BRRRR Exit: Bridge Loan → DSCR Rental Loan

Many investors use the BRRRR strategy — Buy, Rehab, Rent, Refinance, Repeat — and the fix & flip to DSCR pipeline is the cleanest way to execute it. Once your project is complete and you've placed a tenant, we refinance you directly from the short-term bridge loan into a 30-year fixed DSCR loan.

If the renovation added significant value and your new DSCR loan is large enough to pay off the bridge balance and recapture your down payment, you've effectively recycled your capital — pulling it back out to fund the next deal without selling.

Frequently Asked Questions