A fix and flip loan finances the purchase of a property and, usually, the renovation budget, with the expectation that the investor will sell or refinance after the work is done. Brokers who place these deals well do three things: they collect the right information up front, they present the plan clearly, and they keep the client informed. This guide walks through the steps.
Start with the deal, not the borrower
Private lenders look first at the property and the plan. Before you submit, be ready to describe what is being bought, what it costs, what the work will cost, and what the property is expected to be worth when the work is done.
The borrower still matters. Experience, liquidity and credit are part of the picture, but a clear, realistic deal usually gets a better first look than a strong borrower with a vague plan.
What to collect before you submit
A short list gets most deals to a real first look. Ask your client for:
- The property address and type
- The purchase price, or current value on a refinance
- The loan amount requested and what it is for
- The rehab budget and scope of work
- The expected after-repair value and how it was estimated
- The borrower's experience with similar projects and estimated credit score
- The borrower's timeline to close
How the process runs
You register in the broker portal, then submit the loan application online. If the deal fits, we send a Letter of Intent that your client reviews and e-signs. It sets the structure of the loan, including your compensation, before underwriting starts.
After that our team processes and underwrites the file, you and your client receive status emails and a document checklist, and the loan closes through the settlement process. Timelines vary by deal, so ask us about your specific file.
Where deals lose time
The same few things slow most files down. Get ahead of them:
- An unclear scope of work or a budget without line items
- An after-repair value with no comparable sales behind it
- Entity documents that are incomplete or out of date
- Missing insurance information on the property
Keep your client in the loop
Your client stays your client. We work the deal with you, not around you. A short message to your client at each step, such as term sheet received, documents requested, appraisal ordered, keeps the relationship strong and the file moving.