The Quick Read: The maximum hard money flip loan comes from the deal and your documented track record, not from owning a business, so the way to reach the top tier is to buy at a wide spread between cost and after-repair value, document completed projects, and show cash that sits outside your company. Lenders size the loan to the property and the plan first. Your business helps mainly through liquidity, relevant experience, and a strong personal guaranty.
- Leverage is tiered by completed projects: 85% of project cost with fewer than 2, 90% with 2 or more, and 93% with 5 or more.
- Every tier is capped at 75% of after-repair value, and the lower of the two tests sets your loan.
- Up to 100% of the rehab budget can be funded in draws, but that is not a 100% purchase loan.
- Business revenue does not qualify you. Business cash can count as liquidity if it is truly available.
- These are typical figures that vary by lender, property, and experience. Nothing here is a commitment to lend.
Does Owning a Business Raise Your Flip Loan?
Owning a business does not directly raise your flip loan. The loan is sized to the deal: purchase price, rehab budget, and the value the property should reach once the work is done. A business owner gets an edge only indirectly.
What this loan actually costs to carry.
Hard money is sized against the project and priced by time. Enter the deal and see how much the program will lend, the cash required at closing, the carry while you hold it, and what is left at the exit.
Leverage tiers on the current program: 85% with fewer than 2, 90% with 2 or more, 93% with 5 or more completed projects — every tier capped at 75% of after-repair value. Loan amounts up to $5,000,000, larger by exception; terms of 6 to 18 months, interest-only, no prepayment penalty. The rehab portion funds in draws against completed work, not at closing.
Program parameters shown update from Lendmire’s centralized guideline source. Rate, points, and months are editable assumptions, not quoted terms.
Cost cap sets the loan · positive spread
Illustrative estimate only — not a quote, Loan Estimate, approval, or commitment to lend. Rate, points, and months are editable assumptions. Hard money is business-purpose financing for real estate investors, not a consumer mortgage. Leverage on the current program tops out at 93% of project cost for investors with a documented track record, capped at 75% of after-repair value, with rehab funding up to 100% of the documented budget released in draws; actual terms vary by lender, borrower experience, property, and exit. Lendmire is a mortgage broker, not a lender.
Three things carry over from the business. The first is liquidity, because cash on hand lets you cover the gap between the loan and the full project cost. The second is experience, since a construction, remodeling, or trade background can count toward your track record at some lenders. The third is guarantor strength: modest personal leverage, real net worth, and cash that is clearly yours.
The same business can also work against you. Heavy business debt on a personal financial statement makes you look more leveraged. Cash tied up in inventory, equipment, or receivables is not flip equity.
Key Terms Defined
After-repair value (ARV): The estimated market value of the property once the renovation is finished, supported by comparable sales.
Loan-to-cost (LTC): The loan as a share of purchase price plus rehab budget. On a flip it is stated as a percentage of project cost.
Loan-to-value (LTV): The loan amount compared with the value of the pledged property.
Draw: A release of rehab money after a phase of work is completed and inspected.
Personal guaranty: A signed promise from you, as principal, to repay the loan if the LLC does not.
Liquidity: Cash and near-cash you can reach without disrupting your business or your other obligations.
Exit: How the loan gets repaid, either through a sale or a refinance into long-term financing.
What Actually Sets the Ceiling
Two tests run side by side, and the lower result is your maximum. One test is loan-to-cost, which depends on how many projects you have completed. The other is the ARV cap, which no tier can exceed. This is how hard money is sized: it is asset-based, short-term lending secured by real property, so the collateral value matters more than the borrower’s income.
| Completed projects | Loan-to-cost (project cost) | ARV cap |
|---|---|---|
| Fewer than 2 | 85% | 75% |
| 2 or more | 90% | 75% |
| 5 or more | 93% | 75% |
Across the wholesale network Lendmire works with, the top tier is reserved for experienced investors. First-time investors qualify at the lower tier, and the experience tier changes how much cash you bring rather than whether you can be considered. The property must be non-owner-occupied, 1-4 units. Credit starts at a 620 minimum, with additional conditions below 660. Loan sizes run up to $5,000,000, larger by exception, on terms of 6-18 months, interest-only. Program details vary by lender, property, and experience.
A Worked Example: Which Cap Binds?
Run two illustrative deals, with every figure expressed as a share of ARV. These are modeled assumptions, not market data.
Deal A: All-in cost, meaning purchase plus rehab, is about 70% of ARV. At the 85% tier the loan lands near 59.5% of ARV, at 90% near 63%, and at 93% near 65%. Every result sits under the 75% cap, so the cost tier controls.
Deal B: All-in cost is about 85% of ARV. At the 85% tier the loan is about 72% of ARV, which still fits under the cap. At 90% the math says about 76.5% of ARV, and at 93% about 79%. Both exceed 75%, so the cap binds and the loan stops at 75% of ARV.
At the top tier on Deal B, you cover the remaining 10% of ARV in cash. A thin spread between cost and ARV cuts leverage even for the most experienced borrower. That is why the most reliable way to a larger loan is a better deal, not a better résumé.
The ARV also has to hold up on its own. Lenders pick comparable sales by distance, recency, and condition, and some stress-test the number against a downside case. A self-reported ARV does not set the loan.
What a Business Owner Brings to the File
| Factor | Effect | Why |
|---|---|---|
| Business revenue | Neutral | The loan is not qualified on income |
| Available personal or business cash | Helps | Covers the gap and the first draw phase |
| Cash locked in operations | Neutral | Not counted as flip equity |
| Heavy business debt | Can hurt | Makes the guarantor look more leveraged |
| Trade or remodeling background | Can help | Some lenders credit it as experience |
| Documented completed flips | Helps most | Moves you up the leverage tier |
Steps to Get the Maximum Hard Money Flip Loan as a Business Owner
1. Pick the deal for the spread. Screen for projects where all-in cost sits well below ARV, so the cost tier controls rather than the 75% cap.
2. Build the ARV file. Gather comparable sales that match on distance, recency, and condition, and assume the lender will test them.
3. Document your experience. Completed projects are shown with closing statements and photos. If your background is construction or remodeling, or you renovated your own rentals, gather proof and ask the lender whether it counts.
4. Separate your cash. Keep reserves outside operating accounts, and show which funds are free of payroll, inventory, and tax obligations.
5. Set up the flip entity. Loans typically go to an LLC, with the principals signing a personal guaranty. Many lenders also pull credit on members who own a meaningful share of the LLC. Title in an LLC rarely makes a loan non-recourse, and lender program eligibility depends on how the entity is structured.
6. Write a real scope and budget. Line items, phases, and a contingency show the lender the rehab money will be spent as planned.
7. Plan the first-phase cash. Rehab money is approved up front but released against completed, inspected work. You fund each phase first and are reimbursed after inspection.
8. Name the exit. State whether you will sell or refinance, and give the lender a plan that fits inside the term.
Where the General Rule Breaks
Business cash that is not really yours. Cash earmarked for payroll, or tied up in equipment and receivables, does not count. Heavy business debt on your personal financial statement can lower how the lender sees you. In practice, files for business owners often run into trouble here, when the owner’s liquidity looks large on paper but most of it belongs to the company.
Thin spreads. The ARV cap binds, so you need more cash no matter your tier.
Bridge versus flip structure. A bridge purchase without a rehab runs up to 80% of purchase price, and cash-out and rate-and-term refinances run up to 65% of value. A flip structure gives leverage on cost, with repairs reimbursed through draws. The flip structure rewards experience and punishes thin spreads.
Experience credit. A construction background counts at some lenders and not at others. Ask before you assume.
Non-recourse. True non-recourse is the exception, and it usually requires a large balance and a heavy track record. Most flip loans carry a personal guaranty.
Out-of-area or very large first projects. These draw more scrutiny, and the lender may want a stronger plan or more cash.
Myths and Mistakes
“Owning a business raises the loan.” It does not. The deal sets the ceiling, and the business helps through liquidity, experience, and guarantor profile.
“100% financing.” It usually means the rehab budget, not the whole project. The combined loan is still held to the ARV cap, and there is no true 100% purchase program. Lendmire’s piece Is a Hard Money Fix and Flip Loan Worth It for a Business Owner? goes through the tradeoffs.
“Credit and income do not matter.” The loan is asset-based, but credit is still pulled, and a personal financial statement and guaranty are standard.
“The advertised percentage is what I get.” The lowest of the cost test and the ARV test controls.
“The rehab money arrives at closing.” It is released in draws after inspection. Delays and scope changes add carrying cost, so build slack into your model.
Planning the Exit
Flip loans are short, so the exit matters as much as the entry. Selling repays the loan. If you decide to hold the property, many investors refinance out of hard money into long-term rental financing once the property is stabilized, and Lendmire brokers that path. A DSCR (debt service coverage ratio) loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, so your business income matters less there. The complete DSCR loans guide explains how the ratio works.
Tax treatment varies; consult a qualified professional before relying on any deduction.
One more point belongs here. Flip loans are business-purpose credit, which means they are reviewed differently from a standard owner-occupied mortgage. For you, that means the lender looks at the project, the entity, and your guaranty rather than a household budget.
Next Step
If you are buying, rehabbing or refinancing an investment property on a short timeline and want to see how the numbers work, Lendmire can help you compare hard money options based on the project, the exit plan, leverage, and your goals. Lendmire is a mortgage broker that arranges financing through select lenders in its wholesale network, covering 41 markets, including Washington, D.C. Call 828-256-2183 to talk through a specific deal.
Frequently Asked Questions
Can my business cash count toward the down payment?
Yes, when it is truly available. Lenders look for liquidity that is not committed to payroll, inventory, or other operating needs. Keeping a reserve outside your business accounts strengthens the file. Each lender decides what it will count.
Do I need completed flips to get a hard money loan?
No, though experience affects leverage. First-time investors typically qualify at the lower tier of 85% of project cost, with the 75% ARV cap still applying. With 2 or more completed projects the tier moves to 90%, and with 5 or more to 93%. Terms vary by lender, property, and experience.
Should I borrow through my operating company or a separate LLC?
A separate entity for the flip is the common structure, subject to lender program eligibility. It keeps project debt away from your operating company’s balance sheet. The principals still sign a personal guaranty, so the risk crosses over to you personally either way.
Is there a true 100% hard money loan for flips?
No. Up to 100% of the rehab budget can be funded in draws, but the purchase portion is not financed at 100%. The combined loan stays under the 75% ARV cap, and you fund each phase before reimbursement.
Does a bigger down payment get me a bigger loan?
Not by itself. More cash lowers the gap you have to cover, but it does not lift the 75% ARV cap or move you up a tier. The tier depends on your documented completed projects.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your investment property. No commitment required.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
About Lendmire
Lendmire — NMLS# 2371349 — is a DSCR and non-QM mortgage brokerage with investor loan programs in 41 markets, including Washington, D.C. DSCR eligibility is commonly reviewed by the lender around property-level rent rather than personal income documentation, subject to lender guidelines, and the brokerage helps arrange financing for LLC-owned portfolios beyond conventional financed-property limits. Recognized by Scotsman Guide as a Top Mortgage Workplace in 2025 and 2026.
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Much a Hard Money Lender Will Lend on a Fix-and-Flip · How to Replace Seller Financing With a Hard Money Loan on a First Flip · How a Hard Money Lender Counts Seasoning on a Flip
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.