Fix & Flip Loans

A Fix & Flip loan is a short-term bridge loan used to purchase property with the intent to sell (or rent) it for a profit after the renovations are complete. Fix & Flip loans require no personal income verification and very little documentation. They offer a great way to start leveraging your existing capital and generate more income with the ability to close & flip more projects at once.

Launch Financial Group finances both the acquisition and the renovation costs of the project. Simply bring your initial closing costs and we will fund the rest, including reimbursing you for the renovation costs as the work is completed.

Pros

  • Focus on Property Income: DSCR loans are based on the income of the property. This is great for investors with fluctuating personal income.
  • Easier Qualification: Many investors who do not qualify for traditional loans find it easier to qualify for a DSCR loan.
  • Lower Documentation Needs: Since the loans are based on the property’s ability to generate income lenders do not need a lot of the paperwork they need for traditional mortgages.
  • Good For Large Portfolios: Each property is evaluated on its own making it easier to acquire multiple properties.

Cons

  • Higher Interest Rates: DSCR loans often come with higher interest rates than a traditional mortgage.
  • Property Must Be Income-Producing: If the property doesn’t generate enough income it is difficult to secure financing.
  • Vulnerability to Market Fluctuations: The property’s income, and its ability to cover the loan, is susceptible to market changes.
  • Property Maintenance and Management: Property maintenance and management are needed to ensure consistent rental income.