Educational information only, not legal, tax or financial advice. Examples and calculations may contain errors; verify them with your own advisors. Advertised starting rates are annual interest, not APR; one point equals 1% of the loan amount. Other fees and costs may apply, and all financing is subject to underwriting.
How fix and flip loans work
A fix and flip loan finances the purchase of an investment property you plan to renovate and sell. The lender funds a share of the purchase and, on some deals, the renovation budget, then is repaid when you sell.
How the loan is sized
Private lenders look at the as-is value and the realistic after-repair value. Crosby's advertised leverage is up to 65%, subject to underwriting. Lower leverage provides an equity cushion but does not protect either party from loss if values fall, costs rise or the exit fails.
What it costs
Expect interest-only payments (from 9% annually at Crosby Lending), origination points (from 1 point), and normal closing costs such as appraisal, title and legal. Use our calculator to model monthly interest and total cost before making an offer.
Budget the flip honestly
Add a contingency of 10–15% to the renovation budget, assume the sale takes longer than you hope, and include selling costs. A deal that only works in the best case is not a deal a lender — or you — should fund.
Get terms before you commit
Send the address, purchase price, renovation budget and expected sale price. An indicative answer before you sign the contract keeps you from overcommitting.
Ready to see real numbers? Get a 30-second quick quote, try the bridge loan calculator or submit your deal.