Fix-and-flip lenders review both the project and the person responsible for completing it. Expect questions about the purchase price, renovation budget, after-repair value, experience, credit, available cash and exit plan. A promising resale value is only part of the application; the project also needs a credible path from acquisition to completion.
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Which Property Numbers Should I Prepare?
Bring the purchase contract or asking price, current property condition, itemized rehab scope and supporting sales comparisons. Explain why each comparable is relevant to the expected finished property. Separate your target resale price from a value already accepted by a lender or appraiser.
Distinguish total project cost from the amount funded on day one. Rehab proceeds may be held back and released through draws. If costs are reimbursed after work is completed, you may need cash to pay contractors before receiving those proceeds.
How Do Experience, Credit and Cash Affect the Review?
Describe completed projects accurately, including your role, scope and results. A first-time investor should identify who will manage construction and supply a realistic budget and schedule. Experience requirements and available structures vary; do not assume every program handles a first deal the same way.
Provide the requested credit and liquidity information even when the property appears attractive. Plan for your cash contribution, transaction charges, carrying expenses and a contingency. Approval for a percentage of project cost does not mean the lender will cover every expense.
What Makes the Exit Plan Credible?
Support the selling price and timeline with the local market rather than only the profit you want. Include commissions, closing costs and the effect of a longer hold. A project with a large projected gross spread can have a much smaller net margin.
If renting and refinancing is the backup, check likely rental income and the potential permanent-loan requirements before purchase. Ask how change orders, draw inspections and extensions work. Those details help you judge whether the funding proposal suits the actual construction plan.
Educational information, not a loan offer. Availability and terms depend on the program, property or business, and borrower qualifications. Legal and tax questions should be reviewed with your advisers.