Prestige Investor Series · Volume 006

Financing a Fix and Flip

Questions to ask when matching a capital structure to a project and timeline.

Review my deal Explore all guides

Free · 7 minutes read · No email required

Structure follows the project

Start with a decision you can defend.

Fix-and-flip financing is one part of the project model. A useful financing plan connects the acquisition, renovation, liquidity, timeline, and exit so the capital structure supports execution from closing through resale or refinance.

Financing availability, structure, pricing, and requirements vary by lender, borrower, property, and transaction. A discussion is not an approval or commitment to lend.

01

Map the complete capital need

Start with the full project—not just the purchase price. Identify acquisition, renovation, financing, holding, and transaction costs, then separate what may be financed from the cash you must be prepared to contribute and retain.

  • Include deposits and closing funds
  • Plan for costs paid before a draw
  • Maintain liquidity for changes and delays
02

Match financing to the business plan

The right structure depends on property condition, renovation scope, experience, timeline, and exit. Compare financing by total project impact and operational fit, not by one headline number. Timing, documentation, draws, extensions, and exit flexibility can materially affect execution.

  • Confirm what costs are eligible
  • Understand how renovation funds are released
  • Ask what happens if the project runs longer
03

Prepare a lender-ready deal file

A clear file helps a financing conversation move efficiently. Assemble the contract or target terms, property details, entity information, renovation scope and budget, comparable sales supporting ARV, project timeline, experience summary, and a clear exit plan.

  • Keep assumptions consistent across documents
  • Explain unusual scope or title conditions early
  • Respond with complete, current information
04

Plan draws, carrying costs, and exit

Financing must work during construction, not only at closing. Understand inspection and draw timing, reimbursement mechanics, interest and other carrying costs, maturity, extension provisions, and the path to sale or refinance. Build time cushion into the model before a delay occurs.

  • Create a draw and cash-flow schedule
  • Model a longer hold and higher cost case
  • Maintain a realistic secondary exit

Before you move forward

Bring these answers to the financing conversation.

  1. 01

    What are the purchase price, detailed rehab budget, ARV support, and total project cost?

  2. 02

    How much cash is available for closing, early work, reserves, and unexpected costs?

  3. 03

    What is the construction schedule, and when will funds be needed?

  4. 04

    What is the primary exit, and what is the realistic alternative?

  5. 05

    What property, borrower, entity, and project documents are ready now?

Put the guide to work

Bring us your
next deal.

Share the property, project numbers, and financing need for a consultative first look.

Start a deal review

A submission is not a loan application, approval, appraisal, or commitment to lend.