About Fix-and-Flip Loans
Fix-and-flip loans represent the cornerstone financing solution for real estate investors seeking to transform distressed properties into profitable assets throughout the San Francisco Bay Area. These specialized hard money loans are specifically engineered to accommodate the unique demands of property rehabilitation projects, providing investors with the capital necessary to acquire, renovate, and resell residential properties within compressed timeframes. Unlike conventional mortgages that can take weeks or months to process, fix-and-flip loans emphasize speed and flexibility, with approvals often granted within 24-48 hours and funding completed in as little as 3-7 business days.
The San Francisco real estate market presents exceptional opportunities for fix-and-flip investors, characterized by aging housing stock, high property values, and consistent demand from homebuyers seeking move-in ready residences. From historic Victorian homes in Pacific Heights to mid-century properties in the Sunset District, investors encounter diverse project types requiring tailored financing solutions. Fix-and-flip loans typically cover both acquisition costs and renovation expenses, eliminating the need for separate financing arrangements and streamlining the entire investment process. These loans are asset-based, meaning approval decisions primarily consider the property's after-repair value (ARV) rather than the borrower's credit history or income documentation, making them accessible to both seasoned investors and newcomers to the real estate investment arena.
Hard Money Lender San Francisco provides fix-and-flip loans for Bay Area sponsors who need quick, decisive execution without conventional bank delay.
We structure each loan around collateral profile, timeline, and exit strategy to support your business plan from acquisition through disposition or refinance.
Frequently Asked Questions
How quickly can I get approved for a fix-and-flip loan in San Francisco?
Our fix-and-flip loan approval process typically takes 24-48 hours from initial application submission. We prioritize speed because we understand that San Francisco's competitive real estate market requires investors to move quickly on opportunities. Once approved, funding can be completed in 3-7 business days, depending on title clearance and appraisal scheduling. We maintain streamlined documentation requirements focused on property analysis rather than extensive borrower financial verification, enabling rapid decision-making that helps you compete effectively against cash buyers.
What percentage of after-repair value (ARV) can I borrow for a fix-and-flip project?
We offer fix-and-flip loans up to 75% of the projected after-repair value (ARV), which is significantly higher than conventional financing options. This means if your renovated property is expected to appraise at $1.5 million, you could potentially borrow up to $1.125 million to cover both acquisition and renovation costs. The exact loan amount depends on property location, renovation scope, market conditions, and borrower experience. We also consider loan-to-cost (LTC) ratios, typically lending up to 85-90% of total project costs for qualified borrowers with proven track records.
Can I get a fix-and-flip loan if I'm a first-time investor with no prior flipping experience?
Yes, first-time investors can qualify for fix-and-flip loans, though terms may differ from those offered to experienced flippers. For newcomers, we may require a larger down payment (typically 20-25% of total costs versus 10-15% for experienced investors) and offer slightly lower leverage ratios. We evaluate factors including credit history, liquid reserves, construction management plans, and the specific property's potential. Partnering with experienced contractors and providing detailed renovation budgets strengthens first-time applications. We also recommend starting with cosmetic renovations rather than structural projects to build a track record before pursuing more complex deals.
What happens if my fix-and-flip project takes longer than expected to complete?
We understand that San Francisco's permitting processes and construction complexities can extend project timelines beyond initial projections. Our fix-and-flip loans include built-in flexibility with initial terms ranging from 6 to 24 months. If your project requires additional time, we offer extension options typically granted in 3-6 month increments, subject to review of project status and market conditions. Extension fees are competitive and disclosed upfront in your loan agreement. We recommend maintaining open communication throughout your project so we can work collaboratively if timeline adjustments become necessary, rather than waiting until the original maturity date approaches.
Do you finance the renovation costs in addition to the property purchase price?
Yes, our fix-and-flip loans are designed to cover both acquisition costs and renovation expenses within a single loan. We typically structure financing using a draw system where renovation funds are released in phases as work is completed and verified through inspections. This ensures funds are available when needed for construction while protecting both borrower and lender interests. Initial acquisition funding covers the property purchase and immediate pre-renovation expenses, with subsequent draws released upon completion of specified project milestones. Interest accrues only on funds actually disbursed, not the total approved renovation amount, helping manage carrying costs during the project timeline.
