FUNDING
FIX-AND-FLIP LOANS
Designing the Perfect Fix-and-Flip Loan AN ARTICLE SERIES ON NAVIGATING THE PRIVATE LENDING WORLD
By Damon Riehl
here are many choices to consider for financing your
expected rate of return for their capital sources. There’s institutional capital from Wall Street, private debt funds with capital from wealthy individuals, and bank lines. There is also crowdfunding capital, which allows small investors to fractionally
fund fix-and-flip loans. And, not to be overlooked, are the many loans still funded by private individuals (i.e., friends) looking to earn a 10%-12% return on their money. As real estate investors seek funds for their projects, it is
T
rehab project. Plenty of lenders today are active in the short-term private lending space, and they each have credit boxes that vary based on their risk tolerances and
28 | think realty magazine :: may – june 2023
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