What is it? (plain English)
A fix-and-flip loan is short-term, business-purpose financing that covers a property's purchase and its renovation, usually sized against the total project cost and capped by the property's projected after-repair value (ARV). Terms are typically short, often around a year.
Who is it for?
Active real estate investors renovating a property to resell — or to refinance and hold. Some lenders work with newer investors who bring a strong plan and reserves.
When might it make sense?
When you've found a property below market that needs work, and you need capital that moves fast and finances the rehab — something a conventional mortgage won't do.
Good to know
Lenders weigh your experience, the realism of your budget and ARV, your liquidity, and — above all — your exit. Rehab funds are typically released through a draw schedule as work is verified. Cost is higher than a conventional loan; the short term leaves little room for delays.
Potential advantages
Finances purchase and rehab together; asset-based and fast; lets you act on opportunities banks won't touch.
Potential limitations
Higher rate and points; short term with extension fees if you run over; rehab and resale risk; an inflated ARV or thin budget can sink the deal.
Documents you may need
Purchase contract, itemized rehab scope and budget, ARV support, track record, entity documents, proof of reserves, insurance.
Questions to ask before you choose
- Is my ARV realistic and supported?
- Does my budget include a contingency?
- What's my exit — and my backup?
- Is my timeline realistic with a buffer?
- Do I have reserves for carrying costs?
How Kyon helps
We help you pressure-test the numbers against the Four Pillars before you commit, arrange capital structured around your project, and — when it fits — fund directly.