Do traditional lenders finance fix and flips?

[Neil Hunter]

I first started out thinking I would buy a few rental properties. However, whe more I think about it, dealing with a rental is a very long term play, and you're also dealing with a lot of unknowns.

I feel a fix and flip has a limited window. I think you're dealing with things you can more control, vs a rental property, you're dealing with things you can't really control (overall market appreciation). Would you agree?

My question is, if I pivot to doing flips instead of rentals, will traditional mortgage lenders finance a fix and flip?

Do you think doing a flip for someone like me who has a full time job (albeit in software engineering -- rest and vest ;) is too aggressive?

Follow Responses

[Teri Feeney Styers]

@Neil Hunter my local banker will fund a fix n flip. He requires 25% down (entire project - not just the purchase) and I do have to show ability to repay (dti ratio). The loan is for 6 months and they will decline some projects. I have a long term relationship with them, a good credit score, and more than one deposit account - and I'm a seasoned flipper - all of which help. @Christopher Brainard @Bob Okenwa