Colorado Fix and Flip Loans

Last Updated: April 9, 2025

Ready to turn Colorado’s real estate market into your next profit opportunity? At OfferMarket, our mission is to help you build wealth through real estate by providing fast, reliable, and low-cost capital for your fix and flip projects. Whether you’re eyeing a single-family home in Denver, a duplex in Colorado Springs, or a condo in Boulder, our Fix and Flip Loan Program is designed to fuel your success. From beginners to seasoned pros, we’ve got the financing you need to purchase and renovate 1-4 unit residential properties—and we’re here to guide you every step of the way.

Let’s explore how you can leverage our program in Colorado, what you’ll get with OfferMarket, and why now’s the time to request your loan!

What is a Fix and Flip Loan?

A Fix and Flip Loan—often called a “hard money loan” or “bridge loan”—is your ticket to buying and renovating a property with the goal of selling it for a profit or refinancing it into a long-term rental. With OfferMarket, your loan comes in two parts:

• Initial Advance: Up to 90% of the purchase price, wired to the title company at closing.
• Construction Holdback: Up to 100% of your rehab costs, reimbursed through draws as you complete the work.

You decide your exit: flip the property for a quick profit or refinance into a DSCR loan to hold it as a rental. Market conditions might shift your strategy—say, from a flip in Fort Collins to a rental in Aurora—and we encourage dual exit options to keep your risk low and flexibility high.

Why Fix and Flip Loans in Colorado Are a Good Choice

Colorado’s real estate market is a goldmine for fix and flip investors like you. With booming cities like Denver, a thriving tourism economy in places like Aspen, and growing suburbs like Parker, demand for updated homes is strong. The state’s diverse property types—from urban condos to mountain townhomes—offer endless opportunities. Plus, Colorado’s steady population growth and job market (think tech in Boulder, aerospace in Colorado Springs) mean resale values and rental demand stay robust.

Our program fits Colorado perfectly: fast funding for competitive markets, flexible terms for unpredictable mountain weather delays, and support for both urban flips and rural rehabs (with adjusted terms). Whether you’re a newbie tackling a cosmetic flip or a pro handling a moderate rehab, Colorado’s market dynamics pair seamlessly with OfferMarket’s financing.

What You Get with Our Fix and Flip Loan Program

Here’s everything you need to know about our program—numbers, technical details, and all—so you can confidently request your loan today.

1. Loan Amount Details

• Minimum: $25,000—perfect for smaller flips.
• Maximum: $2,000,000 (over $1M requires 3+ experience and strong comps).
• How It Works: Your loan size ties to the purchase price, rehab budget, and After Repair Value (ARV), ensuring you’ve got the capital you need.

2. After Repair Value (ARV) Requirements

• Minimum ARV: $100,000—keeps your project profitable.
• Maximum Loan-to-ARV (LTARV): Up to 75%, adjusted by experience (e.g., 70% for beginners with light rehabs, 75% for pros with moderate jobs).
• Valuation: We use appraisal reports (e.g., 1004 + 1007 for single-family) or in-house valuations for quick, accurate ARV estimates.

3. Funding Breakdown

• Initial Advance: Up to 90% of the purchase price, based on your experience tier (80% for beginners, 90% for 5+ projects) and adjustments (e.g., -5% for credit <720, +10% for licensed contractors).
• Construction Holdback: Up to 100% of rehab costs, disbursed via self-serve, app-based draw requests with 0-2 day turnaround.
• Down Payment: Minimum $10,000 for properties under $100K—your skin in the game.
• Draws: No minimum or maximum, with 50% funded for materials delivered but not installed.

4. Interest Rate and Fees

• Interest Rate: Flexible based on market fluctuations— for the most updated rate tailored to your deal.
• Origination Fee: 1.5 to 2 points ($2,000 minimum)—e.g., 2 points on a $100,000 loan = $2,000 upfront.
• Other Fees: $270 per draw, $30 per wire, plus appraisal costs you’ll cover.
• Interest Accrual: Loans under $100K accrue on the full amount (“full boat”); $100K+ accrue only on funds disbursed.

5. Loan Term

• Duration: 12 months standard, with 18-24 months for specific projects.
• Extensions: Up to 50% of your term (e.g., 6 months on a 12-month loan) for a fee (1% for 3 months, 2.5% for 6 months).

6. Repayment Structure

• Payments: Interest-only with a balloon payment at maturity—keeps your cash flow free during the flip.
• Prepayment Penalty: None—you can pay off early without worry.
• Recourse: Full recourse, with 51% of your LLC or Corporation guaranteeing for purchases (100% for refinances).

7. Exit Strategy Requirements

• Sale: Target a minimum 30% ROI and $15,000 profit.
• Refinance: Aim for a 1.1 DSCR post-repairs.
• Flexibility: Switch between flipping or renting based on Colorado’s market—our dual-exit focus keeps you covered.

8. Eligibility Criteria

• Experience: Not required—beginners start at Tier 1 (80% advance), pros at Tier 5 (90%) based on 10+ projects.
• Credit Score: Minimum 680 (660-679 with exceptions), with adjustments below 720.
• Borrowing Entity: Must be an LLC or Corporation.
• Cash Reserves: You’ll need cash to close + 25% of your rehab budget in liquid assets (bank, brokerage, or retirement accounts).

9. Project and Property Requirements

• Eligible Properties: 1-4 unit residential—single-family (≥700 sq ft), duplex/triplex/quadplex (≥500 sq ft per unit), condos (≥500 sq ft), townhomes, PUDs.
• Maximum Acreage: 5 acres—great for Colorado’s rural flips.
• Rehab Scope: Light (under 25% of purchase price) to extensive (100%+ of purchase price), with eligibility tied to experience (e.g., beginners limited to light/moderate).
• Location: We lend in Colorado, excluding only AK, AZ, HI, MN, ND, NV, OR, SD, UT, VT. Rural areas get a -20% advance adjustment and require 3+ experience.

10. Risk and Approval Process

• Underwriting: We assess ARV, rehab scope, your experience, and market conditions (e.g., Denver comps or Grand Junction liquidity).
• Valuation: Appraisal or in-house, depending on your deal.
• Approval Timeline: Draws take 0-2 days; initial funding depends on how fast you submit docs—we make it as quick as possible.
• Default Rate: Less than 0.5% of our loans have ever defaulted—your success is our pride.

11. Support and Flexibility

• Guidance: As your deal advisor and risk manager, we offer calculators and rehab scope advice—perfect for Colorado’s varied projects.
• Rehab Oversight: Self-serve draw inspections keep you in control.
• Advanced Draws: At our discretion, ensuring you’re funded as needed.

12. Transparency and Fine Print

• Sample Costs: See the example below for a $150,000 Colorado property.
• Hidden Costs: Draw fees ($270), wire fees ($30), and extension fees (e.g., 1% for 3 months) are all upfront.
• Rural/Complex Terms: Rural Colorado flips get a -20% advance; extensive rehabs cap at 70% LTARV or 85-90% Loan-to-Full-Cost (LTFC).

Example: Flipping a $150,000 Property in Colorado

Imagine you’ve found a fixer-upper in Colorado Springs worth $150,000 as-is. Here’s how you can use OfferMarket’s Fix and Flip Loan to turn a profit:

With a 36% ROI, you’ve cleared our 30% minimum and pocketed over $26K—proof our program works in Colorado’s hot market!

What Documentation Do You Need for an OfferMarket Fix and Flip Loan?

Getting started with a Fix and Flip Loan from OfferMarket is straightforward, thanks to our streamlined Loan File system. We’ve designed it to make processing quick and easy, so you can move from application to funding without unnecessary delays. Plus, any documentation you submit stays securely stored in your OfferMarket account—ready to speed up future loan applications. Here’s what you’ll need to provide, whether you’re purchasing a property or refinancing one.

Documentation for Purchase Transactions

When you’re buying a property to flip, we need a clear picture of the deal and your financial standing. Here’s the rundown:

• Purchase Contract: A fully executed contract signed by both you (the buyer) and the seller.
• Credit Report: A soft tri-merge credit report for each member of your borrowing entity acting as a guarantor.
• Background Report: Required for every member of your borrowing entity—helps us assess risk.
• Track Record: Your history of real estate projects, required for each entity member.
• ID Verification: A government-issued ID like a driver’s license, passport, or Green Card.
• Borrowing Entity Docs: Articles of Organization or Incorporation, Operating Agreement or Bylaws, Certificate of Good Standing, and a W-9 for your LLC or Corporation.
• Scope of Work: A detailed rehab budget—we use this to calculate your After Repair Value (ARV).
• Appraisal Report: We’ll send you a link to pay the appraisal invoice, and the report gets uploaded to your loan file.
• Bank Statements: Two recent statements for each guarantor, from personal accounts (bank, brokerage, or retirement)—no need for them to be in the entity’s name.
• Letter of Explanation (LOE): If our underwriting team needs clarification on things like large deposits, late payments, or background items, we’ll ask for this.

Documentation for Refinance Transactions

If you’re refinancing a property you already own, the requirements shift slightly to reflect your existing investment. Here’s what we need:

• Settlement Statement: Fully executed by you and the settlement agent.
• Credit Report: Same as above—a soft tri-merge report for each guarantor.
• Background Report: Required for all borrowing entity members.
• Track Record: Your project history, submitted for each member.
• ID Verification: A valid government-issued ID.
• Borrowing Entity Docs: Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9.
• Sunk Costs: A breakdown of costs you’ve already put into the property.
• Scope of Work: Your rehab budget, guiding the ARV and your renovation plan.
• Appraisal Report: Pay the invoice via the link we provide, and we’ll upload the report.
• Bank Statements: Two recent statements per guarantor from personal accounts.
• Letter of Explanation (LOE): Only if we need more details on deposits, payments, or background.

Our system keeps this process efficient—submit once, and we’ll store what we can for next time. Ready to get started? Your loan approval is just a few documents away!

Special Requirements for Loans Over $1 Million

Thinking big? For Fix and Flip Loans between $1 million and our $2 million maximum, we apply some adjusted guidelines to ensure the deal’s a win for both of us. These larger loans come with higher stakes, so we tighten up a bit on eligibility. Here’s what you need to know:

• Experience: You’ll need a minimum of 3 completed projects, ideally at a similar or higher price point. We want to see you’ve handled big flips before.
• Market Liquidity: We require at least 3 comparable sales within a 2-mile radius, sold on the MLS in the last 6 months. This proves your property’s resale potential.
• Credit Score: A minimum of 680, plus at least 5 trade lines with a 24-month history—your credit needs to show depth and reliability.
• Rural Designation: If the property’s flagged as rural by the CFPB, USDA, or appraisal report, it’s not eligible. Check out our Rural Designation Search Tool for clarity.
• Track Record: Required for each member of your borrowing entity—your past performance matters.

These tweaks ensure that high-value projects stay on solid ground. If you’re eyeing a million-dollar flip, bring your A-game and the right market, and we’ll back you with the capital you need.

Glossary of Key Terms for Fix and Flip Loans

Real estate financing comes with its own language, and we want you to feel confident navigating it. Here’s a handy glossary of terms you’ll encounter in our Fix and Flip Loan Program:

• ADU (Accessory Dwelling Unit): A secondary, self-contained housing unit on the same lot as a main home—like a guest house or in-law suite.
• Arm’s-Length: A transaction between unrelated parties, ensuring fair market value with no favoritism.
• Non Arm’s-Length: A deal where the parties have a personal, financial, or business connection that might skew pricing or terms.
• Initial Advance: The chunk of your loan that covers the purchase price, wired to the title company at closing.
• Construction Holdback: The portion of your loan for rehab costs—note: our original text had a typo listing this as purchase price again, but it’s meant for renovations, disbursed via draws.
• Interest Reserves: Funds collected at closing and held in escrow to cover interest payments, based on your credit and payment history.
• LOE (Letter of Explanation): A document clarifying details—like why you had a big deposit or a late payment—when we need more context.
• LTC (Loan to Cost): The ratio of your loan amount to the total of purchase price plus rehab costs.
• LTFC (Loan to Full Cost): Similar to LTC, it’s your loan amount divided by purchase price plus construction budget—capped at 85-90% for extensive rehabs.
• LTV (Loan-to-Value): Your loan amount compared to the property’s current As-Is value.
• LTARV (Loan-to-After-Repair Value): The ratio of your loan to the property’s value after renovations—learn more at LTARV Explained.
• As Disbursed Interest: Interest charged only on the funds you’ve used (initial advance + drawn holdback), typical for loans $100K+.
• Full Boat Interest: Interest accrued on the entire loan amount from day one, even undrawn funds—aka Dutch Interest, common for loans under $100K.
• Lopsided Deal: When the As-Is value or purchase price is less than the rehab cost—LTFC limits apply here.
• GC Agreement: A contract with your general contractor, spelling out their role in managing the project.
• DSCR (Debt Service Coverage Ratio): A measure of rental income versus debt payments—Rent ÷ PITIA—key for refinance exits.

Master these terms, and you’ll be speaking our language in no time. They’re the building blocks of your loan—and your success.

Ready to Flip in Colorado? Request Your Loan Now!

You’ve got the details—loan amounts, ARV limits, funding breakdowns, fees, terms, and more. Whether you’re a beginner testing the waters in Pueblo or a pro scaling up in Denver, OfferMarket’s Fix and Flip Loan Program has you covered. Our <0.5% default rate and risk-focused approach mean you’re partnering with a lender who prioritizes your success.

Colorado’s market is ripe—don’t wait. and start your application. Funding depends on your docs, but we’ll move as fast as you do. Let’s build your real estate wealth together—request your loan today!

Get an Instant Fix and Flip Loan Quote in Colorado

OfferMarket is your trusted partner for real estate investing in Colorado. Our Fix and Flip loan program is designed to provide you with the financial flexibility and competitive rates you need to succeed in your real estate projects. Get started today by requesting an instant quote for your next fix and flip investment.

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