Flip Master
Flip Master

How Funding Works

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Deal Snapshot

Provide address, acquisition price/payoff, as-is condition, scope & budget, timeline, exit plan (sale vs. DSCR refi), and rent comps if relevant.

Preliminary Terms

We review comps/ARV, budget reasonableness, and DSCR (if rental) to issue transparent, non-binding ranges quickly—typical of investor-focused lenders.

Underwriting & Third-Party Reports

  • Valuation: Appraisal or BPO as program requires.
  • Title/Insurance: Title, hazard, and if needed, builder’s risk.
  • Scope Validation: We align the draw schedule to real construction milestones; change orders handled with prior approval.

Closing & Funding

Purchase proceeds wire at closing; rehab/construction funds are held back and released via inspection-verified draws. You pay interest only on funds outstanding (not on unreleased holdbacks—common market practice).

how-funding-works

Project Execution & Draws

Submit photos/invoices; we verify completion and release funds quickly to keep work moving. Some peers advertise 4-day draw turnaround—our operations are built to be competitive.

Exit

Flip: List and sell at ARV.

Hold: Refinance into a DSCR loan once stabilized and leased per program rules.

What We Evaluate (Underwriting Lens)

  • Asset & ARV: quality of comps, neighborhood trend, days-on-market, scope realism.
  • Budget Discipline: labor/material benchmarks, contingency (~10–15% typical by practice), draw cadence feasibility.
  • Sponsor: experience (especially for construction), credit profile, reserves, and vendor bench.
  • Exit Strength: list-price realism (flip) or rent support and DSCR headroom (hold).

Eligibility & Borrower Types

  • Eligible borrowers: U.S. individuals or LLC/Corp entities investing in non-owner-occupied properties.
  • Minimums vary by program: credit, liquidity, and experience are considered; construction often requires prior ground-up experience.
  • Not offered: owner-occupied/consumer mortgages; services to institutional investors and brokers.

Documents & Requirements (Typical)

  • Entity package: Articles/operating agreement, EIN/authorizations.
  • Financials: Recent bank statements (liquidity/reserves), credit authorization.
  • Deal file: Purchase contract or payoff (for refi), scope of work, itemized budget, timeline, contractor/GC info.
  • Valuation/Title/Insurance: We coordinate required third-party reports.

Fees, Costs & Transparency

  • At-cost third-party fees: appraisal/BPO, title/recording, inspections, insurance.
  • Interest-only on drawn balances for most short-term programs; no interest on unreleased rehab holdbacks (a market practice some lenders highlight).
  • No junk fees: we disclose origination and all known pass-through costs up front.

Final pricing depends on risk factors (LTV/ARV, experience, credit, liquidity, market). Publicly listed examples from peers show fix-and-flip LTV/ARV and fees in similar ranges.

Where We Lend

FlipMaster lends in select U.S. states. Availability varies by program (Fix & Flip, DSCR, Fix-to-Rent, Construction, Small MF). Request the current state list and program matrix.
Large private lenders commonly offer multi-state coverage with program differences by state and asset type.

Resource Center

Even without a blog, we provide practical tools investors actually use:

  • Guides & eBooks
  • The Investor’s Guide to DSCR Financing (definitions, DSCR math, rent comps, seasoning).
  • ARV, LTC & Draws—A Fix-and-Flip Playbook (how ARV is derived, setting scopes, scheduling draws).
  • Calculators
  • Flip ROI Estimator (purchase + rehab + carry → ARV → projected margin).
  • DSCR Calculator (NOI ÷ annual debt service → coverage ratio).
  • Case Studies (anonymized)
    • Cosmetic flip in a 30-day turn vs. heavy value-add with 3 draw cycles.
    • BRRR example: bridge rehab to DSCR refi at stabilization.