How Fix and Flip Loans Save Your Wallet in the Long Run

Posted by Walnut Street Finance Team on Jun 12, 2018

We’ve seen it before: Real estate investors have their investment plan put together, have assembled a project team, and even have contractors lined up for a job - but for whatever reason, they’re hesitant to pull the trigger on a fix and flip loan.

fix and flip loans

This is totally understandable - for those new to the world of fix and flip investing, the first instinct might be to seek out a tradition lender, like a bank, to finance the job. The problem is getting funding from a bank might not set you up for success in the long run - it might not even save you any money. In fact, when compared to a fix and flip loan, it could end up costing you quite a bit more.

Want to make sure your fix and flip investment is worth all your time and money?

Here’s the biggest problem with borrowing from traditional lenders - they’re hyper-focused on the borrower, rather than the project at hand. They’ll turn away borrowers on the basis of bad credit before they’ve even heard the pitch. Sure, if you have great credit, they might be able to build a loan to fund your project - but you’ll lose time in the lengthy approval process, and you’ll have to pay closing costs that can range from 2-5% of the property’s purchase price (whereas Walnut Street Finance finances these costs on the borrower’s behalf).

The bottom line is that banks would rather take on safer, low-risk options than a short term investment property. Private, hard money lenders, on the other hand, work with fix and flip investors every day - they’re not only used to the associated risk of these investment properties, but have made it their business to help borrowers maximize the profit on their real estate investments.

Why Get a Fix and Flip Loan from Walnut Street Finance?

While fix and flip loans are often the perfect instrument for a real estate investment project, what matters just as much is the lender behind the loan. Here’s what Walnut Street Finance offers every investors we meet:

  • Speed & Ease: We can approve your loan in as little as 24 hours, and close as quickly as 7 days - and with minimal paperwork involved upfront, we keep the submission and approval process as simple as possible
  • Competitive Rates: Rates on our loans range from 10-12% and 2 to 3 points, depending on the borrower’s experience as well as the deal itself
  • Flexible Loan Amounts: Loans can be arranged for projects of nearly any size, ranging in value from $100,000 to $4 million
  • Low Money Upfront: We’ll finance your closing costs, helping you save money from day one
  • Focused on the Project: Our process is focused on the borrower, but when it comes to approvals, we’re focused on the investment - meaning you won’t necessarily get turned away because of a less-than-stellar credit score
  • Experience: With more than 30 years combined experience in real estate, we’ve seen projects of all sizes and varieties - meaning we’re not just lenders, but partners in your investment journey

If you’re ready to start work on your next project, contact Walnut Street Finance today to figure out how we can work for you.

In the meantime, if you’re new to real estate investing, considering checking out our free ebook, The Fix and Flip Lexicon - you’ll learn all the terms and lingo you’ll need to sound like a veteran flipper.

Fix and Flip


Walnut Street Finance Team