Flip Funding

About Flip Funding

Flip Funding is an asset-based lender in Sacramento, CA providing funding across the US. They provide investment property loans, cash out hard money loans, hard money loans for commercial properties, new construction loans, hard money bridge loans, and fix and flip loans. They provide terms up to 360 months, rates ranging between 6% and 9%, and loan amounts ranging from $75,000 to $10,000,000 with a maximum LTV of 80%. They require a minimum FICO score of 660 to obtain a loan. They primarily offer loans on single family units and multi family.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Refinance / Cash Out Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family

Areas Served: National

Lending Guidelines for Flip Funding

Below are the general loan guidelines published on the Flip Funding website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Flip Funding.

Loan Example 1

Flip Funding makes a fix and flip loan to Estella for a renovation project in Nashville, TN, on a house that costs $190,000. The borrower will need to bring 30% of the purchase price in cash to closing based on a 70% loan to value stipulated by the lender. This makes the loan principle from Flip Funding $133,000. The terms of the note also include a three point origination fee that will be paid at closing and a 12 month, interest only note with a 8% rate of interest.

Estella will need to contribute $57,000 to the closing (30% on the 70% loan-to-value), plus she will have to pay the $3,990 origination fee. she will then pay $887 monthly to Flip Funding. At the expiration of the loan, she sells the rehabed house for $266,000. After deducting the $10,640 in interest expenses ($887 multiplied times 12 months), the $3,990 origination fee, the $133,000 principle amount on the loan, and the $57,000 she brought to closing, she will earn a total profit of $61,370 ($266,000 price minus $204,630 in costs). This amount would be reduced by any rehab costs paid by Estella.

Loan Example 2

Katharine is a an investor in Alexandria, VA. She purchases an older house for a rehab project and takes a private money loan from Flip Funding with the following terms:

a) A $230,000 sales price, b) a 70% loan-to-value (LTV), c) a 18 month term, d) a 12% interest rate, and e) a 1% origination fee.

If Katharine succeeds in her goal of a $345,000 sales price, the outcome of the project will be as follows:

$345,000 sales price
- $161,000 principle on note (70% LTV)
- $69,000 cash paid at closing (30% on 70% LTV)
- $1,610 origination fee (1% of the $161,000 principle)
- $28,980 interest payments (18 months x 12% interest)
-----------------------
= $84,410 total profit (does not include taxes or rehab costs)

No Reviews Yet

Flip Funding currently has no reviews. To add a review now, click the link below:

Write a Review for Flip Funding