The Quick Read: Yes, an investor can find a hard money lender for a fix and flip by searching under private, bridge, and transitional lending, asking local investors and agents for referrals, and working with a broker who places files with several lenders, then vetting each one on licensing, fees, rehab draw process, and track record before committing. The harder part is not finding a lender. It is picking one whose structure fits your project.
- Hard money is short-term, interest-only capital secured by the property, sized on the deal and the exit.
- Lenders often go by other names, so search “private lender,” “bridge lender,” and “transitional lender” too.
- Leverage is usually measured against project cost and after-repair value, not just purchase price.
- Rehab money is typically held back and released in draws after the work is verified.
- Terms, leverage, and eligibility vary by lender, property, and experience, and nothing here is a commitment to lend.
What a Flip Lender Actually Underwrites
A hard money lender underwrites the deal. It looks at what you are paying, what the property should be worth after repairs, and how you plan to get repaid. Your personal income matters far less than it does on a standard mortgage.
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.
The lender lends against the property itself. If the project stalls, the house is the safety net. That is why the buy price, the repair budget, and the finished value get so much attention.
Most flip loans share a basic shape. The purchase portion funds at closing. The rehab money is held back and released in stages. Payments are interest-only. The loan is repaid when you sell or refinance.
Four things decide most outcomes:
1. The gap between your purchase price and the after-repair value.
2. A repair budget and contractor bids that look realistic.
3. Cash for the down payment, fees, and the early stretch of work.
4. A clear exit, usually a sale.
Many lenders also weigh how many projects you have finished. Experience tends to change leverage and pricing more than it changes whether you can get a loan at all.
Where Do Investors Find Hard Money Lenders?
Investors find these lenders through referrals, local investor groups, online searches, and brokers. Referrals from people who have closed loans with a lender are the strongest signal. A broker widens the field because one conversation reaches several lenders.
| Channel | Best for | Watch-out |
|---|---|---|
| Investor club or association | Local relationships | Check recent closings |
| Agent or attorney referral | Fast shortlist | Referrers may favor one lender |
| Online search | Wide view of options | Marketing can outrun substance |
| Broker | Comparing several lenders | Confirm how the broker is paid |
| Other flippers | Honest draw experience | One person’s story is one data point |
Search under every name the industry uses. A trade group, the National Private Lenders Association, has encouraged its members to say private, bridge, or transitional lending instead of hard money. Lenders who prefer those labels may not rank for the older term.
Which channel fits depends on your profile. A first-time flipper usually gets more from referrals and a broker, because both help you learn what a fair term sheet looks like. A repeat flipper with a track record can often go straight to a few lenders and compare.
Which Type of Lender Fits Your Flip?
Lender type affects how the loan behaves once the work starts. A lender funding loans from its own capital can often make its own decisions. A lender that sells loans after closing has to fit investor rules. A broker does not lend at all and instead places your file with the lender whose guidelines suit it.
| Lender type | Strength | Tradeoff |
|---|---|---|
| Local private lender | Knows the neighborhood | Smaller reach, fewer states |
| Regional lender | Local feel, more capacity | Fewer product options |
| National lender | Larger loans, more programs | Less personal contact |
| Broker | Compares several lenders | You still vet the final lender |
Right-size the lender to the loan. A small local lender may be ideal for a modest rehab and a poor fit for a large project. A national lender may handle larger balances but treat a first-time flipper as one file among many.
Also ask who picks up the phone mid-project. Draw requests, inspections, and change orders all happen after closing. A lender that is easy to reach during the sale is worth more than one that was easy to reach at signing.
How to Vet a Lender Before You Commit
Vetting means checking facts, not trusting a website. Confirm the lender is licensed where your property sits, ask for borrower references, and read the fee schedule line by line. A lender that cannot show recent closed flip loans deserves a pause.
Work through this checklist:
1. License and registration. Confirm the lender is allowed to lend in your state and that the entity is real.
2. Track record. Ask how many flip loans it has funded recently and whether it will share references.
3. Fee transparency. Request every fee in writing, including origination, draw, inspection, and extension charges.
4. Draw process. Learn who inspects, how long approval takes, and how you submit receipts.
5. Communication. Notice how the team answers questions before you owe them anything. Slow answers now rarely improve later.
6. Servicing. Find out who services the loan after closing and who you call about a payoff.
Be wary of any lender that asks for an advance fee before issuing a term sheet, avoids a written fee schedule, or promises approval before reviewing the property. Also be wary of a lender with reviews but no verifiable closings. Anyone promising a loan with no down payment and no equity deserves extra scrutiny. Hard money is not no-money-down. Lenders generally expect you to bring cash or equity, and you will usually pay some fees up front.
Questions to Ask Every Lender
Ask the same questions of every lender so the answers line up side by side. Group them by what they reveal.
Cost
- What is the full fee schedule, and which fees are due before closing?
- Is there a prepayment penalty, or a minimum amount of interest owed?
- What does an extension cost if the sale takes longer than planned?
Draws and rehab
- Does the loan fund the rehab budget, or only the purchase?
- How are draws requested, inspected, and paid?
- What happens if repairs run over budget?
Structure
- How is the loan sized: on project cost, after-repair value, or the lower of the two?
- Does my experience change leverage?
- How is the loan repaid, and who handles the payoff?
Total carry beats any single headline number. Over a short hold, upfront costs and draw fees can matter more than the monthly interest, so compare the all-in cost for the months you expect to own the property.
What to Have Ready Before You Call
A prepared borrower gets clearer answers. Gather these before your first call:
- A purchase contract or a specific property address.
- A scope of work and a line-item rehab budget, backed by contractor bids.
- Your estimate of after-repair value, with sold comparables to support it.
- Proof of funds for the down payment, closing costs, and early rehab expenses.
- Entity documents, if you buy through an LLC, subject to lender program eligibility.
- A summary of completed projects, if any.
- Your credit information, since most lenders still look at it.
Start before you have a property under contract. Getting approved first lets you move when a good deal appears, and it gives you time to run two or three lenders in parallel.
What the Lendmire Network Looks Like
Lendmire is a mortgage broker that arranges hard money financing through select lenders in its wholesale network, across 41 markets, including Washington, D.C. These figures come from the brokerage’s own program knowledge. They vary by lender, property, and experience, and nothing here is a commitment to lend.
Fix-and-flip leverage is tiered by completed projects and measured against project cost, not purchase price alone:
| Experience | Leverage (of project cost) | Hard cap |
|---|---|---|
| Fewer than 2 projects | Up to 85% | 75% of ARV |
| 2 or more projects | Up to 90% | 75% of ARV |
| 5 or more projects | Up to 93% | 75% of ARV |
The top tier is reserved for experienced investors. Rehab funds up to 100% of the documented budget, released in draws against completed work. That is a rehab-budget figure, not a purchase loan-to-value. There is no true 100% purchase program. Bridge purchases without rehab run up to 80% of the purchase price, and refinances run up to 65% of value.
Other typical parameters:
- Terms run 6 to 18 months, interest-only, with no prepayment penalty. There are no multi-year options on this program.
- Loans go up to $5,000,000, with larger sizes by exception. Smaller balances vary by lender.
- The credit minimum is 620, with added conditions below 660. First-time investors qualify at the lower leverage tiers.
- Collateral is non-owner-occupied residential property of one to four units. Ground-up construction can go to ten units.
- Underwriting stays asset-based: the property, the plan, and the exit.
Hard money flip loans are business-purpose investor loans, so they are reviewed differently from a standard owner-occupied mortgage. Federal rules treat that kind of credit separately, as the Consumer Financial Protection Bureau’s Regulation Z business-purpose exemption describes.
A First-Time Flipper’s Search, Step by Step
Picture an investor with no completed flips who has spotted a dated three-bedroom house. Here is how a sensible search runs.
First, she builds the scope of work and gets two contractor bids. She estimates the after-repair value from recently sold homes nearby. Then she asks two local investors and an agent which lenders they have used and how the draws went.
Second, she requests term sheets from three sources: a local lender from a referral, a regional lender she found online, and a broker. She asks each the same list of questions and writes the answers in a side-by-side comparison.
Third, she checks how leverage binds. This is modeled math, not a market figure. With fewer than two completed projects, leverage is up to 85% of project cost, capped at 75% of ARV. Assume project cost equals 85% of the ARV. Then 85% of cost lands near 72% of ARV, below the cap, so cost governs. If project cost were 92% of ARV, 85% of cost would be about 78% of ARV, and the 75% cap would govern. The thinner the spread between cost and finished value, the more cash she brings.
Finally, she compares total carry for her expected hold and picks the lender with the clearest draw process, not simply the biggest advertised leverage. The lender she chooses is the one that answers questions before she owes it anything.
Mistakes to Avoid When Choosing
Most bad outcomes trace back to a handful of choices.
- Chasing the highest leverage. A higher percentage means little if the draw process is slow or fees are heavy.
- Ignoring cash flow in the first weeks. Draws are paid after work is verified, so you cover early costs. A contractor who can carry some costs while waiting helps.
- Comparing only the interest. Origination, draw, inspection, and extension fees all count.
- Assuming the property is all that matters. Value is the biggest factor, but lenders also review the budget and the borrower.
- Skipping the exit plan. If the house does not sell at target, know your fallback before you sign.
- Shopping after you find the house. Starting the search under contract leaves no room to compare.
When Hard Money Is Not the Right Move
Hard money fits a short project with a clear exit. It fits poorly when you plan to hold for years, when the margin is too thin to absorb financing costs, or when you intend to live in the property. Hard money flip loans are for non-owner-occupied business use, so owner-occupant rehab is a different product.
Margins are worth a look. ATTOM’s most recent quarterly flipping report counted 77,991 single-family homes and condos flipped, about 6.2% of home sales. ATTOM’s companion data put the typical profit margin at 21.5%, down from the prior year. Thinner margins make financing costs matter more.
Alternatives include a joint-venture partner who brings the capital while you manage the crew, or a smaller project that fits your cash. If the flip becomes a hold, many investors refinance out of hard money into long-term rental financing once the property is stabilized, and Lendmire brokers that path. DSCR, short for debt service coverage ratio, compares a property’s rent to its full monthly housing payment of principal, interest, taxes, insurance, and any association dues. Select programs start at 1.00, with stronger ratios opening better terms. Clearing 1.00 is not the same as positive cash flow, since repairs, vacancy, and management sit outside that math. Lendmire’s complete DSCR loans guide explains how that works.
Key Terms Defined
After-repair value (ARV): The estimated value of the property once the renovation is finished.
Loan-to-cost: The loan amount as a share of total project cost, including purchase and rehab.
Draw: A release of held-back rehab money after the lender verifies completed work.
Interest-only: A payment structure where you pay only interest each month and repay the balance at the end.
Exit strategy: Your plan for repaying the loan, usually a sale or a refinance.
Broker: A professional who places your loan with a lender but does not lend the money.
Frequently Asked Questions
Can I find a hard money lender with no flipping experience?
Often yes, though experience shapes the terms. Lenders commonly give first-time investors lower leverage than repeat flippers. In Lendmire’s network, fewer than two completed projects falls in the lowest tier, up to 85% of project cost and capped at 75% of ARV. Terms vary by lender, property, and experience, and nothing is a commitment to lend.
Should I choose a local or national lender?
It depends on the project. A local lender often knows the neighborhood and will talk to you directly. A national lender usually offers larger loans and more programs. Match the lender’s size to your loan, and ask who handles draws once work begins.
Do brokers charge for introductions?
A broker is paid either by the lender or by the borrower, and the arrangement should be disclosed to you up front. Ask how the broker is compensated, then compare the full terms of each option, not only the broker’s fee. Lendmire arranges hard money options through lenders in its network, and you can compare them against any lender you find yourself.
How do I spot a bad lender?
Look for advance-fee requests, missing written fee schedules, and promises of approval before the property is reviewed. Also watch for lenders that cannot name recent closed flip loans or provide borrower references. Confirm licensing in your state before you share documents.
Can I use more than one lender?
Yes. Many investors keep a shortlist and request term sheets from two or three lenders for the same project. Just give each lender the same documents so the comparison stays fair.
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. Reach the team at 828-256-2183 or request a quote.
The best lender for your flip is rarely the one with the biggest advertised leverage. It is the one that funds the rehab draws on schedule and still answers the phone after closing.
For current guidelines and terms, see Lendmire’s DSCR loan programs page.
About Lendmire
Lendmire is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income rather than personal income, subject to lender and program guidelines, a fit for self-employed investors and LLC-owned portfolios. Lendmire was recognized as a Scotsman Guide Top Mortgage Workplace in 2025 and 2026.
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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.
References
1. Consumer Financial Protection Bureau – Regulation Z, Section 1026.3 (business-purpose exemption)
2. attomdata.com: Home Flipping Profits Continue Gradual Two Year Decline
3. ATTOM – Flipping ROI and price-tier data
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Should a Flipper Use a Private or Direct Hard Money Lender? · Should You Choose a Hard Money Lender for a Flip on Cost Alone? · Can You Buy a Flip in an LLC With a Hard Money Loan?
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
Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.