The California Investor
Fix-and-Flip Financing
By JC Pacific Corp Last updated 2026-10-02
Fix-and-flip financing is short-term money built around a purchase-and-rehab plan, typically structured as a hard money or private loan for the purchase, rehab, or both. These loans fund quickly but cost more and require an exit, usually the resale or refinance of the property.
Run the numbers
Estimate total project cost, net profit, ROI, and break-even sale price for a flip.
Open the Fix & Flip CalculatorHow Flip Loans Work
The lender advances funds for the purchase and often a rehab draw schedule, and you repay the loan when the property sells or is refinanced. Interest is typically charged monthly on the outstanding balance, and terms run from months to a couple of years.
What Lenders Evaluate
Flip lenders focus on your experience, the deal's numbers, the after-repair value, and the exit. They may lend a percentage of the purchase price and a percentage of rehab costs, with your cash covering the rest. Requirements vary widely by lender.
The Costs
- Higher interest rates than long-term mortgages
- Points and origination fees
- Appraisal and funding fees
- Interest accumulates monthly, so speed matters
The Risk Is Time
Every month the project runs is another month of interest, taxes, insurance, and utilities. The fix and flip calculator models holding costs and shows the break-even sale price, so you can see what delay costs before you borrow.
A Note on This Guide
Terms, rates, and requirements vary by lender and borrower and change frequently. Nothing here is lending advice, and JC Pacific is a real estate brokerage, not a lender. Verify current programs with licensed lenders.
Frequently Asked Questions
How fast can I get fix-and-flip financing?
Private and hard money lenders often fund faster than banks, sometimes in days to a few weeks, in exchange for higher costs. Speed varies by lender and file completeness.
How much cash do I need for a flip with financing?
Lenders commonly require you to cover part of the purchase and rehab costs, plus reserves. The exact amount depends on the lender's advance rates and your deal.
What happens if the flip does not sell in time?
You must extend, refinance, or pay off the loan from other funds. Extensions usually cost fees and interest. Plan the exit before you borrow.
Educational information
This guide provides general, educational information about California investment real estate. Any calculations, projections, or examples are estimates for educational and planning purposes only and do not constitute financial, tax, legal, lending, or investment advice. Market conditions, loan programs, rates, underwriting requirements, laws, and rules change over time, so verify current information with qualified professionals before making decisions. JC Pacific Corp is a real estate brokerage, not a lender, tax adviser, or law firm.
A note on financing: loan terms, interest rates, underwriting requirements, down payments, and program availability vary by lender and by borrower, and they change frequently. Nothing in this guide is an offer to lend. JC Pacific Corp is a real estate brokerage and is not a lender, mortgage broker, or loan originator. For your specific situation, obtain current quotes and program details from licensed mortgage professionals.
Run the numbers first. When you're ready to look at properties, JC Pacific can help with the next step.
Related investor resources
The California Investor hubMore in Financing
Put this guide to work
Turn research into a next step.
"The numbers first" applies to every property. Model the deal, research the address, compare markets, then talk with the JC Pacific team when you are ready to look at real properties and make an offer.