Fix and Flip Financing

If you’re new to flipping: 1. Start by studying your target market—comps, buyer preferences, days on market. 2. Build a trusted team (contractors, agent, lender, title). 3. Focus on simple cosmetic rehabs before heavy structural projects. 4. Underwrite deals conservatively using ARV, the 70% rule, and realistic timelines. CV3 often works with both experienced flippers and newer investors who have a solid plan and support team, helping them move from learning to executing confidently.

The capital required to flip houses depends on: - Purchase price and rehab costs - Lender leverage levels (LTV/LTC and rehab financing) - Reserves for holding and surprises With strong deals, experienced investors, and a lender like CV3 that offers high leverage and rehab financing, you may be able to complete flips with significantly less upfront cash than a traditional purchase—but you’ll still need reserves for earnest money, soft costs, and contingencies.

Your profit comes from the spread between ARV and your total project cost (purchase + rehab + financing + carrying + closing). Successful flippers focus on: - Buying right (discounted vs. ARV) - Accurate rehab budgets with contingencies - Tight timelines to control holding costs - The right buyer pool (finish level that matches the neighborhood) - Financing that supports speed and leverage A lender who understands flipping can help you structure the project so the numbers work in your favor.

To get a fix and flip loan: 1. Connect with a private lender like CV3 that specializes in rehab financing. 2. Share your deal details—purchase price, scope of work, ARV, timeline, and exit strategy. 3. Provide required documents (entity info, experience, credit profile, etc.). 4. Work with the lender to finalize terms, draw schedules, and closing logistics. CV3 offers short term bridge and fix & flip loans with options for up to 100% of rehab costs for qualified investors, designed to keep your liquidity focused on sourcing more deals.

Purchasing property at auction is all about preparation and discipline. Investors who win at auction treat capital and risk management as seriously as the bidding itself. Do your homework on title, condition, and neighborhood, understand the auction rules, set a maximum bid rooted in ARV and rehab costs, and stick to it. Emotional bidding can erase your profit quickly. A disciplined underwriting process and clear capital plan will keep you on track. To buy foreclosure auction homes: - Study the auction rules and fine print. Research minimum bids, deposits, and deadlines. - Understand the auction format (courthouse, online, bank owned platform). - Register and provide proof of funds or deposit. - Review property details, disclosures (if any), and terms. Perform as much due diligence as possible—title search, liens, occupancy, and local rules. - Pre underwrite the deal and have financing lined up—know the ARV, rehab budget and exit strategy - Place bids in person or online during the auction window. Bid only up to your pre set maximum based on the numbers, not emotions - Bring verified funds or financing that allows you to close quickly. If you win, you’re typically required to pay a deposit immediately and close within a short time frame. Because timelines are tight, many investors line up private or bridge financing in advance so they can act with confidence when the gavel drops. These deals can be profitable but unforgiving; pairing them with a lender who understands distressed assets and rehab is key.

Loan to Value (LTV) ratio compares the loan amount to the property’s value: LTV = Loan Amount ÷ Property Value If you borrow $200K on a $250K property, your LTV is 80%. At CV3, maximum LTVs vary by loan type—fix & flip, rental, or construction—but we often offer higher leverage than traditional banks, especially when the deal is strong and the investor is experienced.

The “70% rule” is a rule of thumb many flippers use: Maximum Offer ≈ 70% of ARV – Rehab Costs So if ARV is $300K and you expect $50K in rehab, a flipper might aim to pay no more than $160K ($300K x 70% – $50K). It’s not a universal law, but it helps keep purchase + rehab + financing + carrying costs within a range that still allows profit. Lenders like CV3 will still underwrite the deal individually, but this rule keeps investors disciplined on the front end.

A prepayment penalty, also called a prepayment premium, is a fee some lenders charge if you pay off your loan before a specified period ends. Not all loans include a prepayment penalty, and the terms vary by loan program and lender. CV3 has no prepayment penalty on 12-month bridge loans, while 24-month bridge loans include a 6-month prepayment premium if the loan is paid off early.

You can sell your property at any time and pay off your bridge loan. CV3 has no prepayment penalty on 12-month bridge loans, while 24-month bridge loans include a 6-month prepayment premium if the loan is paid off early.