What Is A Fix And Flip Loan?
Fix and Flip Loans, also known as bridge loans, rehab loans, or residential transition loans, are used by real estate investors to buy a property, renovate it, and resell it for a profit. There are two parts to a fix and flip loan – the purchase and the rehab.
These are usually short-term loans, ranging from twelve to eighteen months in length. When an investor wants to buy a single family property to flip, they will most likely need a Fix and Flip Loan.
Fix and flip loans are more simple and flexible than standard house loans. The property itself serves as collateral for Fix and Flip Loans. Collateral for home loans includes the property.