Fix and Flip Loans for Real Estate Investors

The loan funds the acquisition at closing and holds the renovation budget in reserve. As you complete phases of the project you request draw inspections, and funds are released against the work verified. Interest is typically not charged on reserve funds until they are drawn. When the property sells, the loan is repaid from the proceeds; if you decide to keep it, you refinance into long-term rental financing.

Norfolk Capital funds fix and flip loans in AL, AK, AR, CO, CT, DE, DC, GA, HI, IL, IN, KY, LA, ME, MD, MA, MI, MS, MO, NE, NH, NJ, NM, NY, OH, OK, PA, RI, SC, TN, TX, WA, WV, WI and WY. We are headquartered in Boston and lend our own capital in the local market, and we bring the same process and team to projects across the country.

The application is quick. Have the project details ready: address, property type, acquisition cost, renovation goals and budget, and an estimated renovated value. For yourself: experience with similar projects, job and stated income, liquidity including cash and retirement accounts, and other real estate owned. We only run credit if we have to, and low credit is not a barrier to getting a loan.

Requirements depend on the situation, but a typical file includes the sales contract, a construction budget, bank statements, a schedule of properties you currently own, a summary of similar projects, credit and background checks, rental income documentation for rental projects, and your LLC operating agreement or articles of organization.

Traditional banks typically take at least a month. We can close in a few days when everything is ready, though a week or two is more common. An appraisal is usually what holds up the process, and it is not always required. To close fast, respond quickly to documentation requests and have your file assembled before you apply.

We lend only on non-owner-occupied properties held by a corporate entity such as an LLC. If you have not formed one yet, it is a quick step and we can point you in the right direction.

In some cases, yes. An interest reserve can be built into the loan so payments are funded while the renovation is underway, which lets you keep your own cash focused on getting the work done before the draws come in. Whether it fits depends on the structure of the deal, so ask when you apply.

Rates start at a competitive level and depend on project type and complexity, the value of the project, loan size, location and borrower experience. Every loan is quoted individually, so the fastest way to get an accurate number is to apply with your project details.

Because we have been on your side of the table. Our team's decades of development and borrowing experience mean we understand your needs, can match you to the right program and are invested in your success. We visit projects, help work through problems and have mentored many first-time investors into full-time careers. You get more than a lender.