Texas Fix and Flip Loan​

Last updated: March 25, 2025

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Helping our clients manage risk is our top priority. We are monitoring the effects of excess homebuilder inventory and associated price cuts and incentives in major Texas markets. If your primary exit strategy is a flip (sale), we recommend a dual exit strategy approach -- underwrite your deals to be able to pivot to rentals if a sale is not profitable or feasible.

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Real estate investing in Texas offers undeniable opportunity from Austin and Dallas to the sprawling suburbs of Houston and San Antonio. For investors looking to capitalize on these opportunities, a Texas Fix and Flip Loan from OfferMarket provides the fast, reliable, and low-cost capital needed to purchase, renovate, and profit from 1-4 unit residential properties. At OfferMarket, our mission is to help you build wealth through real estate by partnering with you as your trusted capital provider and risk management advisor. Whether you’re flipping homes or building a rental portfolio, we’re here to fuel your success across the Lone Star State.

Let’s dive into everything you need to know about our Texas Fix and Flip Loan program—how it works, who it’s for, and how it can empower you to thrive in Texas’ dynamic real estate market.

What is a Texas Fix and Flip Loan?

A Texas Fix and Flip Loan is a short-term financing solution designed for real estate investors to buy and renovate 1-4 unit residential properties with the intent to sell (flip) or refinance into a longer-term loan, such as a DSCR loan. Often referred to as a hard money loan or bridge loan, this financing option is tailored to the fast-paced nature of fix and flip projects. At OfferMarket, we specialize in providing these loans exclusively to real estate investors, ensuring you have the flexibility and speed to seize opportunities in Texas’ competitive market.

How It Works

Our Texas Fix and Flip Loan consists of two key components:

• Initial Advance: This portion of the loan covers up to 90% of the purchase price, wired directly to the title company at closing. It gets you into the property quickly, minimizing delays.
• Construction Holdback: This covers up to 100% of your rehab costs, disbursed via draw reimbursements as you complete the work. This ensures you have the funds to transform the property without straining your cash flow.

Your exit strategy is critical. Most investors aim to flip the property for a profit, targeting a minimum 30% ROI. Alternatively, you might choose to rent it out and refinance into a DSCR loan, especially if market conditions shift. Texas’ diverse markets—from urban hotspots to rural gems—often require this flexibility, and our loan program is built to support both paths.

For example, imagine buying a fixer-upper in Fort Worth for $100,000 with a $30,000 rehab budget. With our loan, you could secure an initial advance of $90,000 and a construction holdback of $30,000. After renovations, the property’s after-repair value (ARV) hits $180,000. You sell it, pay off the $120,000 loan, and pocket a healthy profit—or refinance and hold it as a rental. The choice is yours, and we’re here to make it work.

Who Uses Texas Fix and Flip Loans?

Our program serves two primary types of Texas real estate investors:

• Fix and Flip Investors (“Flippers”): These investors buy distressed and outdated properties, renovate them, and sell them for a profit.
• Rental Property Investors: Using strategies like the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat), these investors build long-term wealth. Our Fix and Rent bundle complements this approach.

Many Texas investors blend these strategies, adapting to market shifts. For instance, a planned flip in Houston might turn into a rental if resale prices soften, or a San Antonio rental might become a flip if demand spikes. Our loans support this adaptability, ensuring you’re never locked into a single path.

Why Choose OfferMarket for Your Texas Fix and Flip Loan?

At OfferMarket, we’re more than just a lender—we’re your partner in building wealth. Here’s why Texas investors trust us:

• Statewide Coverage: We actively fund fix and flip loans across Texas, from El Paso to Killeen to Tyler, ensuring you can invest wherever opportunity presents itself.
• Speed: Our streamlined process delivers fast closings, critical in Texas’ competitive off-market and foreclosure markets.
• Low Costs: With origination fees of 1.5 to 2 points and no junk fees or prepayment penalties, we help you avoid unnecessary expenses and increase your profits.
• Risk Management: With a default rate below 0.5%, we prioritize your success through careful underwriting and deal advisory.

Texas Fix and Flip Loan Program Guidelines

Our program is designed for 1-4 unit residential properties, including single-family homes, duplexes, triplexes, quadplexes, condos, and townhomes. Here’s a snapshot of our key terms:

• Loan Amount: $50,000 to $2,000,000
• Initial Advance: Up to 90% of purchase price
• Construction Holdback: Up to 100% of rehab costs
• Loan-to-After-Repair-Value (LTARV): Up to 75%
• Term: 6 to 24 months, interest-only with a balloon payment
• Credit Score: Minimum 680
• Experience: Not required, though higher experience unlocks better terms
• Down Payment: Minimum $10,000
• Borrowing Entity: LLC or Corporation, with 51% guaranteeing

Project Eligibility and Risk Management

Texas’ vast geography and market diversity—from urban condos in Dallas to rural homes in East Texas—require tailored risk management. We classify rehab scopes into four categories to ensure your project aligns with your experience:

• Light: Rehab budget < 25% of purchase price (e.g., cosmetic upgrades)
• Moderate: 25% to 49.99% (e.g., kitchen/bathroom remodels)
• Heavy: 50% to 99.99% (e.g., structural repairs)
• Extensive: 100%+ (e.g., additions or ADUs)

New investors (Tier 1, no experience) are eligible for light rehab projects, while seasoned investors (Tier 5, 10+ projects) can tackle extensive rehabs. This structure protects you from overextending, especially in Texas’ unpredictable rural markets or during economic shifts.

Leverage Based on Experience

Your initial advance and LTARV depend on your experience tier:

• Tier 1 (0 projects): 80% initial advance (85% with excellent credit), 70% LTARV
• Tier 2 (1-2 projects): 85% initial advance, 70% LTARV
• Tier 3 (3-4 projects): 85% initial advance, 75% LTARV
• Tier 4 (5-9 projects): 90% initial advance, 75% LTARV
• Tier 5 (10+ projects): 90% initial advance, 75% LTARV

Adjustments apply—e.g., a rural property in West Texas might reduce your advance by 20%, while being a licensed Realtor or General Contractor boosts it by up to 10%. For extensive rehabs, Loan-to-Full-Cost (LTFC) caps at 90% to ensure you have skin in the game.

Valuation and Draw Process

We use appraisals or in-house valuations to determine As Is value and ARV. For loans over $100,000, interest accrues only on disbursed funds (“as disbursed”), saving you money. Draws are app-based, self-serve, and processed in 0-2 business days for a $270 fee plus $30 wire fee—keeping your Texas rehab on track.

Texas Market Insights for Fix and Flip Investors

Texas’ real estate landscape is a goldmine for real estate investors using fix and flip loans. Here’s why:

• Population Growth: Cities like Austin and Frisco are booming, driving demand for updated homes.
• Affordable Entry Points: Compared to coastal markets, Texas offers lower purchase prices, especially in areas like Lubbock or Corpus Christi.
• Diverse Opportunities: From urban flips in Houston to rural rentals in the Hill Country, Texas caters to every strategy.

However, risks exist. Rural properties may face slower resale, and rapid appreciation in hot markets can shift ARVs. Our dual-exit-strategy focus—sell or refinance—mitigates these risks, ensuring you’re covered whether flipping in Plano or renting in McAllen.

Real-World Examples

Example 1: New Investor in San Antonio

• Purchase Price: $120,000
• Rehab Budget: $25,000 (light rehab)
• ARV: $190,000
• Tier: 1, Credit Score: 720
• Loan: $96,000 initial advance (80%), $25,000 holdback
• LTARV: 64%
• Outcome: Sold for $185,000, netting $40,000 profit after loan repayment

Example 2: Experienced Investor in Dallas

• Purchase Price: $200,000
• Rehab Budget: $80,000 (moderate rehab)
• ARV: $380,000
• Tier: 4, Credit Score: 740
• Loan: $180,000 initial advance (90%), $80,000 holdback
• LTARV: 68%
• Outcome: Refinanced into a DSCR loan, now cash-flowing $600 per month

FAQs About Texas Fix and Flip Loans

Can I Get a Fix and Flip Loan Anywhere in Texas?

We fund across all Texas counties, from urban hubs to rural areas, with adjustments for rural designations and a strong preference for non-rural properties.

What’s the Minimum Credit Score?

A 680 FICO score is required, though we prefer guarantors with 720+ for optimal terms.

Do I Need Experience?

No experience is required for light rehabs, making our program accessible to new Texas investors.

How Fast Can I Close?

With our efficient process, closings often occur within 10-15 days, perfect for snagging Texas foreclosures or off-market deals.

Get Started with Your Texas Fix and Flip Loan

Ready to turn Texas properties into profit? OfferMarket’s Texas Fix and Flip Loan program offers the capital, flexibility, and support you need. Whether you’re flipping a bungalow in Austin or rehabbing a duplex in El Paso, we’re here to help you succeed. Visit offermarket.us/loans for an instant quote and take the first step toward building your real estate empire in Texas today.

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Thousands of real estate investors get value from OfferMarket every month. Membership is entirely free and includes the following benefits:

💰 Private lending
☂️ Insurance rate shopping
🏚️ Off market properties
💡 Market insights

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