Getting Started with a
Fix & Flip Loan

A fix and flip loan is a special type of hard money lending. Hanson Capital will fund these loans, which are used to purchase, repair and ‘flip’ properties.

A fix & flip loan makes it easier to purchase, repair and flip a property fast. Fix and flip loans are most often used to to finance renovations and upgrades, purchase residential properties at foreclosure or auction, and to cover other expenses associated with the purchase of an investment property.

Hanson Capital is a private money lender offering short-term fix & flip loans to real estate investors for properties across the state of Arizona. Get a private money loan for an investment property purchase, refinance, cash out, rehab or new construction in the Arizona area.

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Advantages of Fix & Flip Loans

There are many advantages of a hard money fix and flip loan for investment properties. Let’s discuss some of the most important ones:

  • Quick funding — Traditional home loans can take a month or more to process and deliver. But investors bidding on foreclosures or auctioned properties need to have cash-on-hand quickly. A hard money fix and flip loan can have funds available within a week, sometimes less.
  • Flexible terms — Fix and flip loans from private investors are not tied to the same rigid structures, processes, and requirements as traditional banking institutions. Borrowers who don’t qualify for traditional loans can often still work with a hard money lender.

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Fix & Flip Loans vs. Construction Loans

Everything you need to know about creative financing

We get a lot of questions about the difference between a fix & flip loan and a construction loan. Here are a few of the most common questions:

  • What’s the difference between a fix & flip loan and a construction loan?
  • What if you’re doing construction as part of the fix & flip process?

Great questions since investment properties that are flipped involve construction and renovation.

The good news is that fix and flip loan funds can be used for all of those needs.

Construction loans are generally used for building entirely new residential or commercial properties or for remodeling an existing building with all-new construction.

What many people don’t know is many of the processes are the same for construction loans and fix and flip loans. A hard money loan provides the benefits of flexibility and speed, both of which are needed in a fix and flip and construction loan scenario.

Tips to Get a Fix & Flip Loan

Find a Local, Reliable Lender

Find an experienced lender with a portfolio in your area. Asking other real estate investors in the area about who they recommend is a great place to start. A local hard money lender generally understands real estate trends in your area and can have contractors if you need help. It’s ideal to have a successful financial partner who has identified and financed successful flips in the past.

Understand the Terms & Costs

What about construction draws and holdbacks? Can funds be drawn incrementally to cover construction work or are funds not released until work is in progress or complete? Make sure you understand your hard money lender terms and how much you’ll need financially.
Don’t forget about carrying & marketing costs. Have all categories of cost mapped out to show your lender you’re ready to go.

Know Requirements & Timing

What does your local lender look for? What does the schedule look like? At Hanson Capital, we recommend writing out the work to be done, when each stage will begin & end, and an estimate of what each portion will cost. What kind of insurance will you need? Do you need to establish an LLC? etc. Hard money loans vary from lender to lender, so make sure you know what your chosen lender requires.

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What is a Fix & Flip Lender?

Fix and flip or hard money lenders loan money for the purpose of renovating and selling a property. These lenders serve clients who specialize in fix and flip real estate.

Hard money lenders evaluate the potential of the property and decide on the amount to be loaned based off of their findings.

They gauge the borrower’s potential to successfully complete the property while taking into account the value of the property once it is sold.

How is a Hard Money Lender different?

Traditional banks rarely lend on fix and flip properties. Bank loans are based on credit of the borrower and are too slow for many real estate investors.

Hard Money Lenders fund faster and require less paperwork than a standard loan.

Why Hanson Capital?

Hanson Capital has an extensive knowledge about real estate investing. We look forward to helping you or your clients.

More about us:

  • We are an asset based lender
  • We don’t check credit
  • We don’t ask for personal tax returns
  • We can fund start to finish in 48 hours
  • No excessive underwriting
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How to get a Fix & Flip loan?

For many real estate investors, the search for a reliable fix-and-flip lender is a difficult one. Even lenders who claim that they can get you approved may take too long to get you the money you need to close a deal.

At Hanson Capital, our goal is to get you an answer in as little time as possible so you can take on your next project right away. We don’t want you to miss out on a great deal while waiting to hear back from a lender ever again.

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More About Fix & Flip Loans

Here are answers to some frequently asked questions! Still need support? Head over to our Contact Us page.

What types of properties do you lend on?

Hanson Capital specializes in providing loans that include both the purchase and repair costs as part of one loan.

The following property types are eligible for our Fix and Flip loans:

  • Single Family Residence (SFR)
  • 2-4 Unit Properties
  • Condominiums
  • Townhouses

What are the loan amounts for a Fix & Flip Loan?

At Hanson Capital our loan minimum is $50K and can go up to $5M in-house financing. Any projects larger are looked at on a case by case basis. Our average loan size is $400K.

Do you lend to companies or LLCs?

Hanson Capital can lend to individuals or LLCs. We prefer to individuals purchase as an entity. Our Fix and Flip loans are available to the following borrowers:

  • Individuals
  • LLCs
  • Limited Partnerships, General Partnerships
  • Corporations

Besides Arizona, what other states do you lend in?

Hanson Capital currently lends in Arizona, California, Colorado, and Texas.

What type of documentation do you need for a Fix & Flip loan?

Hanson Capital looks at investments differently than a bank and rely mostly on your real estate experience and other common-sense factors when making decisions.

We ask for the following documents for Fix and Flip Loans.

  • Sales Contract
  • Application
  • Construction Budget
  • A list of properties you currently own (an REO Schedule)
  • LLC Operating Agreement

What are the interest rates for a fix & flip loan?

Hanson Capital offers competitive Fix and Flip loan rates. All rates are based on the individual property and borrower. Contact us for more details & to schedule a consultation.

What are the top fix & flip loan cities in Arizona?

At Hanson Capital, we work with real estate investors in the following cities:

  • Chandler, AZ
  • Flagstaff, AZ
  • Gilbert, AZ
  • Glendale, AZ
  • Mesa, AZ
  • Payson, AZ
  • Phoenix, AZ
  • Scottsdale, AZ
  • Tempe, AZ
  • Tucson, AZ
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Chris Hanson

Founder

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