Fix and Flip Loans
A Fix and Flip loan is a type of bridge loan. As its name suggests, these loans fund real estate ventures which acquire properties, make improvements and resell them at a price higher than the sum of the initial acquisition price plus the cost of the improvements made to property. These loans are short term (12 to 18 months) to cover the duration from initial purchase to sale of the property. There is seldom property income during the term of the loan. Overall, these loans represent more risk than conventional, long term funding.