How quickly can I get funded with a term loan from Khojie?

Unlike traditional banks that can take weeks or even months, Khojie's streamlined process allows for funding in as fast as a few business days once approved.

Do I need collateral for a business term loan?

It depends. Smaller loan amounts might be unsecured (no collateral required), especially with strong credit. Larger loans or those for businesses with less history often require collateral, such as equipment or real estate.

Can a startup business get a term loan?

While challenging with traditional banks (who usually want 2+ years of history), alternative lenders like Khojie are often more flexible. A strong business plan, good personal credit, and potentially a personal guarantee can help startups qualify.

What's the difference between APR and interest rate?

The interest rate is the cost of borrowing the principal amount. The Annual Percentage Rate (APR) includes the interest rate PLUS any additional fees (like origination fees), giving a more complete picture of the loan's total cost.

House undergoing renovation for flipping

Construction worker giving thumbs up on renovation project

Hands holding keys to a newly flipped house

Fix & Flip Loans: Fast Funding for Your Next House Flip

Key Takeaways: Fix & Flip Loans

What are they? Short-term loans (6-18 months) specifically for buying and renovating residential properties to resell quickly (flip).
Who qualifies? Real estate investors (new and experienced) with a solid plan, decent credit (650+ often preferred), and some capital for down payment/reserves.
Why choose them? Speed is critical. Get funding much faster than traditional mortgages (often in 5-14 days vs. 45-60+ days for banks). Lenders focus on the property's After Repair Value (ARV).
Funding Structure: Typically covers up to 85% of purchase price and 100% of renovation costs (often disbursed in draws).
Khojie Advantage: Access a network of specialized fix & flip lenders offering fast closings, competitive rates, high leverage, and expertise in evaluating flip projects.

Fuel Your Flip: What Are Fix & Flip Loans?

Dreaming of transforming that diamond-in-the-rough property into a profitable sale? Fix & Flip Loans are the specialized financial tool designed precisely for this purpose. They provide short-term capital to real estate investors to purchase a property, fund the necessary renovations, and cover holding costs until the property is sold.

Unlike standard mortgages meant for long-term occupancy, fix & flip loans understand the need for speed and flexibility. They typically have terms ranging from 6 to 18 months and focus heavily on the project's potential profit, specifically the After Repair Value (ARV) – the estimated value of the property *after* renovations are complete.

Key Features:

Short Terms: Designed for quick project turnaround (6-18 months).
Fast Funding: Close deals in days or weeks, not months. Crucial for competitive markets.
ARV-Based Lending: Funding often based on the future value, allowing higher leverage.
Covers Purchase & Rehab: Finance both the acquisition and renovation costs.
Interest-Only Payments: Common structure to keep monthly costs low during the renovation phase.

Why Choose a Fix & Flip Loan Over Other Options?

When speed and leverage matter, fix & flip loans offer distinct advantages:

Speed to Close: Secure properties at auctions or from motivated sellers before traditional buyers can react. Khojie helps connect you with lenders closing in as little as 5-10 business days.
Higher Leverage: Finance a larger portion of the purchase and often 100% of the renovation costs, preserving your personal capital for other deals or reserves.
Focus on the Deal, Not Just Credit: While credit matters, lenders heavily weigh the property's potential (ARV) and your renovation plan.
Designed for Flipping: Terms and payment structures (like interest-only) are built for the short-term nature of flipping.

💡 Khojie Advantage: We specialize in the fix & flip market. We understand ARV-based lending and connect you with lenders who offer high leverage and fast closings, maximizing your deal potential.

The Fix & Flip Loan Process: From Purchase to Profit

Here's the typical journey:

Find the Deal: Identify a property with good "bones" and profit potential after renovation.
Develop a Plan & Budget: Create a detailed scope of work (SOW) and budget for renovations, including holding costs and contingencies.
Apply for Funding: Submit property details, your SOW/budget, purchase agreement, and information about your experience/financials.
Appraisal & Approval: The lender orders an appraisal focusing on the ARV. Approval is based on the deal's viability, ARV, and your qualifications.
Closing & Funding: Close quickly (often 5-14 days). You typically receive funds for the purchase, with renovation funds held in escrow and released in draws as work is completed and inspected.
Renovate: Execute your renovation plan efficiently.
Sell the Property: List the renovated property and sell it for a profit.
Repay the Loan: Use proceeds from the sale to pay off the fix & flip loan.

Qualifying for Your Fix & Flip Loan

Lenders look for a combination of factors:

The Deal Itself: Is the purchase price right? Is the ARV realistic? Is the renovation budget sound?
Your Experience: Proven success on previous flips is a major plus, but Khojie works with first-time flippers who have a strong plan and team.
Credit Score: A score of 650+ is generally preferred for better rates, but options exist for lower scores, often through Hard Money Lenders.
Liquidity/Reserves: You'll need cash for the down payment (typically 10-20% of purchase price) and reserves for holding costs and unexpected issues.
Exit Strategy: A clear plan to sell the property quickly after renovations.

Fix & Flip Loans: Weighing the Pros and Cons

Advantages:

Speed: Essential for competitive markets.
High Leverage: Finance purchase + rehab costs.
ARV Focus: Based on potential, not just current state.
Preserves Capital: Less cash out-of-pocket than buying outright.

Disadvantages:

Higher Rates/Fees: More expensive than conventional mortgages.
Short Terms: Pressure to complete and sell quickly.
Interest Reserves: May need to pre-fund interest payments.
Market Risk: Property values could decline before sale.

Frequently Asked Questions

How much experience do I need to get a fix & flip loan?

While experience helps secure better terms, many lenders (especially those Khojie partners with) fund first-time flippers who present a solid deal, a detailed plan, and have a good team (contractor, agent) in place.

Can I live in the property while renovating it?

Generally, no. Fix & flip loans are for non-owner-occupied investment properties intended for resale.

What's the difference between a fix & flip loan and hard money?

They are very similar and often overlap. Fix & flip loans are a *type* of short-term loan often provided by hard money lenders or specialized institutions. Hard money is a broader category of asset-based lending, often with slightly higher rates but potentially even faster closing and more flexibility. Learn more here.

What if I decide to keep the property as a rental instead of selling?

Your exit strategy would change. You'd need to refinance the fix & flip loan into a long-term rental loan, like a DSCR Loan, before the short term expires.

Ready to Fund Your Next Flip?

Don't miss out on profitable deals due to slow financing. Get fast, flexible Fix & Flip funding through Khojie's network.

Apply for a Fix & Flip Loan Talk to a Flip Specialist

Fix & Flip Loans

Fund Your Flip Fast!