FIX AND FLIP
WHAT IS A FIX AND FLIP LOAN?
Fix and flip loans are short term, interest only, collateral based loans primarily utilized for both residential and commercial investment properties. We lend up to 75% of the ARV (After Repair Value) with terms starting at 7.99%.
These loans provide funds for both the acquisition and construction costs. If you already have funds set aside for the construction portion, an acquisition loan is better suited for you. Another major difference is that fix and flip loans are utilized to repair an existing structure, as opposed to a construction loan that is utilized to acquire land and build from the ground up.
HOW ARE FUNDS DISPERSED FOR THE CONSTRUCTION PORTION OF THE PROJECT?
Construction funds (Holdbacks) will be dispersed utilizing Draw Requests. As you complete work throughout the project, you will submit a Draw Request. Once Black Label Capital, LLC receives this request, and all required documents, an inspection is scheduled. After a successful inspection, BLC transfers the requested amount to the borrower. Please ensure that all lien releases, city inspections, receipts, invoices and Scope of Work are submitted with the Draw Request. Failure to submit these documents can lead to a delay in dispersing the funds.
WHAT IS THE PROCESS OF OBTAINING A FIX AND FLIP LOAN THROUGH BLACK LABEL CAPITAL?
Submit an application. All fix and flip loans are collateral based. After we evaluate the collateral in question and make a determination, we typically send out multiple lending options for you to choose from the same day.
FIX AND FLIP TERMS
Origination Fees-2-3 Points
Loan To Value-Up to 75%
Minimum Required Length-1 Month
Loan Type-Residential & Commercial
Loan Length-6 & 12 Months