Fix-and-flip investors need fast, flexible capital — not bank timelines. Commercial Loans of Texas funds fix-and-flip projects across Texas using hard money loans that close in days, not months. Whether you are flipping a single-family rental, a small apartment building, or a commercial property, we have a program that works.
What Is a Fix-and-Flip Loan?
A fix-and-flip loan is a short-term hard money loan used to purchase and rehabilitate an investment property for resale or rental stabilization. The loan covers the purchase price, and many programs also fund a portion of the renovation costs (rehab holdback). The loan is repaid when you sell the property or refinance into permanent financing.
How Fix-and-Flip Loans Work in Texas
- Loan term: 12 to 24 months — designed for the hold period of a flip
- LTV: Up to 70–75% of After-Repair Value (ARV) on residential; 60–65% on commercial
- Rehab holdback: Renovation funds disbursed in draws as work is completed
- Rate: Typically 10–13% interest-only during the hold period
- Close time: 7 to 14 business days
- No tax returns: Hard money qualifying is based on the deal, not your income
Types of Properties We Fund
- Single-family residential investment properties (non-owner-occupied)
- Small multifamily (2–4 units)
- Apartment buildings (5+ units) undergoing value-add renovation
- Retail strip centers and mixed-use buildings being repositioned
- Light industrial and flex space rehab
- Office buildings being converted or renovated
After-Repair Value (ARV) Lending
ARV lending is the most important concept in fix-and-flip financing. Instead of lending against the current distressed value of the property, the lender underwrites to the estimated value after repairs are complete. If a property is worth $120,000 distressed but will be worth $200,000 after $40,000 in renovations, an ARV lender might lend 70% of $200,000 = $140,000 — enough to cover the purchase and part of the renovation.
Rehab Draw Schedule
Renovation funds are not released all at once. Lenders use a draw schedule — funds are released in stages as renovation milestones are completed and inspected. Typical draws: foundation/structural work, framing, mechanical (HVAC/plumbing/electrical), drywall and finishes, final completion. Budget for 1–2 week draw turnaround times in your rehab schedule.
Exit Strategies for Texas Fix-and-Flip Borrowers
- Sell the property: The classic flip — buy, renovate, sell for profit, pay off the hard money loan at closing
- Refinance to rental: After renovation, refinance into a DSCR loan and hold as a long-term rental
- Stabilize and sell: Complete the renovation, lease to tenants, then sell to an investor at a stabilized cap rate
What You Need to Get a Fix-and-Flip Loan in Texas
- Property address and purchase price
- Renovation scope and estimated cost (contractor bids help)
- Your estimated ARV after renovation (comps from your agent or appraiser)
- Down payment: typically 20–30% of purchase price
- Proof of experience helps but is not always required for first-time investors
- Entity or personal: both work fine
Texas Fix-and-Flip Markets We Cover
We lend statewide across Texas — Dallas-Fort Worth, Houston, San Antonio, Austin, and all secondary markets. The DFW and Houston MSAs have the highest volume of fix-and-flip activity in the state, driven by aging housing stock in inner suburbs and strong buyer demand from population growth.
Call to Start Your Fix-and-Flip Loan
Tell us the address, purchase price, renovation budget, and your ARV estimate — we will give you a loan structure and rate quote within the hour. Call Commercial Loans of Texas at 877-895-3634 or apply online.