Fix & Flip/ Bridge
Fix and flip loans are short-term loans designed for real estate investors who buy properties, renovate them, and resell for a profit—aka, “flip” them.
Key Features:
- Short term: 6 to 18 months
- Covers purchase + renovation costs
- Interest-only payments until the property is sold
- Often asset-based (based on property value, not borrower’s income)
- Higher interest rates (typically 8%–15%)
- May require experience flipping homes or a detailed rehab plan
Bridge Loans
Bridge loans are short-term loans that “bridge the gap” between two financial events—often used to buy a new property before selling the current one, or to provide temporary funding until permanent financing is secured.
Key Features:
- Short term: 6 to 12 months (sometimes up to 2 years)
- Can be used for residential or commercial properties
- Helps cover gaps in timing, not major renovations
- Based on equity in the current property or expected future financing
- May have higher interest and fees than traditional loans
Common Uses:
- Buying a new home before selling your old one
- Securing a property quickly while arranging long-term financing
- Real estate developers or investors waiting for permanent financing