What Is a Fix & Flip Loan?
Fix-and-flip loans are short-term loans used by real estate investors to purchase and improve a property to then sell for a profit. These improvements range from minor renovations to a complete reconstruction of an existing home. These loans are used exclusively for residential real estate investments, so renovating a school, for instance, would not qualify for this type of funding. In a fix-and-flip project, the property is often purchased from MLS, off-market, at auction through a foreclosure or a bank short sale. A buyer may later try to sell the property “as-is” or may choose to add value by improving…