New Mexico Fix and Flip Loan
All steps completed - you're finished
Last Updated: April 13, 2025
Are you ready to tap into the exciting opportunities in New Mexicoâs diverse real estate market? Whether youâre flipping houses in fast-growing urban centers like Albuquerque, Santa Fe, and Las Cruces, or focusing on quieter locales such as Roswell and Farmington, OfferMarketâs Fix and Flip Loan Program is here to power your investment journey. We offer swift, reliable, and cost-effective financing so you can purchase and renovate residential propertiesâperfect for both first-time flippers and seasoned pros.
Letâs explore how our program works in New Mexico, why now is an ideal time to invest, and how OfferMarketâs loan options can supercharge your next successful project.
What is a Fix and Flip Loan?
A Fix and Flip Loanâsometimes called a âhard money loanâ or âbridge loanââis specifically designed to help you buy and renovate properties for a profitable resale or to refinance into rental properties. With OfferMarket, your loan includes two main components:
Initial Advance: Up to 90% of the purchase priceâwired directly to the title company at closing.
Construction Holdback: Up to 100% of your rehab costsâreimbursed through draws as renovation work progresses.
The best part? You decide how to exitâflip for a fast profit or refinance to hold as a rental. Market conditions can change rapidly, so having the flexibility to pivot is a real advantage.
Why New Mexicoâs Real Estate Market Is Ideal for Fix and Flip Projects
Known as the âLand of Enchantment,â New Mexico boasts a growing, varied real estate sector. From the cultural hubs of Albuquerque and Santa Fe to the up-and-coming areas of Las Cruces and Rio Rancho, the state offers a range of attractive investment opportunities. Key reasons why New Mexico stands out include:
Robust Job Market: Thriving industries such as renewable energy, aerospace, and film production are bringing more people into the state, boosting demand for quality housing.
Strong Demand for Rentals and Resale: A steady inflow of new residents and a vibrant tourism scene helps maintain a healthy market for both rental and resale properties.
Wide Variety of Property Types: From suburban single-family homes to multi-unit complexes in smaller towns, New Mexicoâs landscape suits every kind of real estate strategy, making it ideal for flippers at all experience levels.
No matter if youâre eyeing a fixer-upper in downtown Albuquerque or a rural gem in northern New Mexico, OfferMarketâs Fix and Flip Loan can be the cornerstone of your success in this dynamic market.
What You Get with Our Fix and Flip Loan Program in New Mexico
Below is a thorough breakdown of our Fix and Flip Loan Program. We want to make sure every piece of information is crystal clear, so you can proceed with confidence.
1. Loan Amount Details
| Criteria | Details |
|---|---|
| Minimum Loan Amount | $25,000 |
| Maximum Loan Amount | $2,000,000 |
| How Itâs Determined | Based on the purchase price, rehab budget, and ARV (After Repair Value). Our loans ensure you have adequate capital for every stage of the project. |
2. After Repair Value (ARV) Requirements
Minimum ARV: $100,000âthis threshold helps ensure profitability.
Maximum Loan-to-ARV (LTARV): Up to 75%, with adjustments based on experience.
- 70% for more complex rehabs or if youâre new to flipping.
ARV Calculation:
- We use professional appraisals or in-house valuations to provide quick, accurate estimates of your propertyâs post-rehab value.
3. Funding Breakdown
| Funding Component | Details |
|---|---|
| Initial Advance | Up to 90% of the purchase price, adjusted by your experience level (80% for beginners, 90% for seasoned investors). |
| Construction Holdback | Up to 100% of your rehab budget, disbursed via self-serve draw requests. |
| Down Payment | Minimum $10,000 for properties priced under $100K. |
| Draw Schedule | Flexible: no set limit on the number of draws. We fund up to 50% for materials delivered but not yet installed. |
4. Interest Rate and Fees
| Fee | Amount |
|---|---|
| Interest Rate | Market-based, tailored for each deal. |
| Origination Fee | 1.5% to 2 points ($2,000 minimum). |
| Other Fees | $270 per draw; $30 wire fee; appraisal expenses paid by the borrower. |
| Interest Accrual | - Loans under $100K: âFull Boatâ (interest on total loan amount). - Loans over $100K: âAs Disbursedâ (interest only on drawn funds). |
5. Loan Term
Duration: Standard 12-month term, with 18-24 months available if your project requires more time.
Extensions:
- Up to 50% of the original term (e.g., 6-month extension on a 12-month loan).
Extension Fees:
1% for the first 3-month extension.
2.5% for the first 6-month extension.
6. Repayment Structure
Payment Type: Interest-only with a balloon payment at maturity.
Prepayment Penalty: Noneâpay off early if youâd like, with zero penalty.
Recourse: Full recourse. For purchases, at least 51% of the borrowing entity must guarantee. For refinances, 100% guarantee is required.
7. Exit Strategy Requirements
Sale:
Minimum 30% ROI
Minimum $15,000 profit
Refinance:
- Minimum 1.1 DSCR (Debt Service Coverage Ratio) post-rehab
Flexibility:
- Flip or refinance as the market shiftsâour loan program supports both strategies in New Mexicoâs ever-changing real estate environment.
8. Eligibility Criteria
| Criteria | Details |
|---|---|
| Experience | Not required. Beginners are Tier 1 (80% advance), while experienced investors progress to Tier 5 (90% advance). |
| Credit Score | 680 minimum, but we consider 660-679 with exceptions. |
| Borrowing Entity | Must be an LLC or Corporation. |
| Cash Reserves | Youâll need enough to cover your portion of closing costs plus 25% of the rehab budget, all in liquid assets. |
9. Project and Property Requirements
| Requirement | Details |
|---|---|
| Eligible Property Types | 1â4 unit residential properties (single-family homes, duplexes, triplexes, quadplexes, condos, townhomes, PUDs). |
| Minimum Square Footage | - Single-family: ⼠700 sq ft - 2â4 unit: ⼠500 sq ft per unit - Condo: ⼠500 sq ft |
| Maximum Acreage | 5 acresâideal for rural flips within New Mexico. |
| Rehab Scope | Light to Heavy, and even Extensive rehabs, allowed based on investor experience. |
10. Risk and Approval Process
Underwriting: We examine the ARV, rehab scope, local market trends, and credit history to structure the best financing for your deal.
Valuation: Either a professional appraisal or an in-house valuation is used to determine ARV.
Approval Timeline:
Draws: Typically approved within 0â2 days.
Initial Funding: Depends on how quickly you provide the required documentsâOfferMarket prides itself on efficiency.
Default Rate: Less than 0.5% of our total lending portfolio, reflecting our dedication to investor success.
11. Support and Flexibility
Guidance: Our advisors offer assistance throughout, including rehab calculators and suggestions for scope of work.
Rehab Oversight: App-based draw inspections allow you to track progress and maintain transparency.
Advanced Draws: Available at our discretion, ensuring you have capital on hand when you need it most.
12. Transparency and Fine Print
Sample Costs:
For a $130,000 New Mexico property, a Tier 1 (beginner) investor might see about $9,700 in interest over 9 months, plus $2,850 in total fees.Hidden Costs:
Draw fees ($270), wire fees ($30), and possible extension fees are spelled out from the startâno surprises.Rural and Complex Projects:
For rural properties, thereâs a -20% advance and a 3+ year experience requirement.
Example: Flipping a $185,000 Property in New Mexico with OfferMarket
Hereâs an illustrative scenario of how OfferMarketâs Fix and Flip Loan could work in the Land of Enchantment:
Purchase Price: $185,000
Rehab Budget: $45,000 (moderate scope at about 24% of purchase price)
ARV: $270,000 (based on comps in the local New Mexico market)
Your Profile: Experienced Investor (Tier 4), 725 credit score
Initial Advance: 90% of purchase price = $166,500
Construction Holdback: $45,000 (100% of rehab)
Total Loan Amount: $211,500
Down Payment: $18,500
Interest Rate: 10% (market quote)
Interest: ~$15,863 (over 9 months)
Fees: $2,000 origination, $270 draw fee, $30 wire fee
Required Documentation for Fix and Flip Loans
OfferMarket streamlines the loan application process with our secure Loan File system, which keeps your documents organized for any future deals. Below are the documents needed for both purchase and refinance transactions to ensure a quick, hassle-free approval.
Purchase Transaction Requirements
| Required Document | Details |
|---|---|
| Purchase Contract | Must be fully executed by both buyer and seller. |
| Credit Report | Soft tri-merge report for each guarantor in the borrowing entity. |
| Background Report | Required for each member of the borrowing entity. |
| Track Record | Required for each member of the borrowing entity. |
| ID Verification | Government-issued ID (driverâs license, passport, or Green Card). |
| Borrowing Entity Docs | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9. |
| Scope of Work | Detailed rehab budget to help determine After Repair Value (ARV). |
| Appraisal Report | A link for payment will be provided; once completed, the report is uploaded to your loan file. |
| Bank Statements | Two most recent personal statements for each guarantor (bank, brokerage, retirement accounts). |
| Letter of Explanation | Required by underwriting for items like large deposits, late payments, or background findings. |
Refinance Transaction Requirements
| Required Document | Details |
|---|---|
| Settlement Statement | Must be fully executed by buyer and settlement agent. |
| Credit Report | Soft tri-merge report for each guarantor in the borrowing entity. |
| Background Report | Required for each member of the borrowing entity. |
| Track Record | Required for each member of the borrowing entity. |
| ID Verification | Government-issued ID (driverâs license, passport, or Green Card). |
| Borrowing Entity Docs | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9. |
| Sunk Costs | Detailed list of expenses already incurred in the project. |
| Scope of Work | A breakdown of the rehab budget to finalize ARV and direct further renovation. |
| Appraisal Report | A link for payment will be sent; once completed, the report is uploaded to your loan file. |
| Bank Statements | Two most recent personal statements for each guarantor. |
| Letter of Explanation | Required by underwriting for clarifications like large deposits, missed payments, or background issues. |
Special Requirements for Loans Over $1M
Loans over $1M (up to our maximum of $2M) come with slightly stricter guidelines:
| Criteria | Explanation |
|---|---|
| Experience | Minimum 3 completed projects, preferably at or above the requested price point. |
| Market Liquidity | At least 3 comparable MLS sales within a 2-mile radius that sold in the last 6 months. |
| Credit Score | 680+ FICO, with a minimum of 5 trade lines and a 24-month credit history. |
| Rural Designation | Properties classified as rural by the CFPB/USDA or the appraisal report may be ineligible. Use our Rural Designation Search Tool to confirm. |
| Track Record | Required for every member of the borrowing entity. |
Why This Documentation Matters
Being organized with your documentation accelerates the approval process, ensuring you can secure funding and move forward with your renovations quickly. OfferMarket keeps your documents securely stored, making any future applications faster and easier.
Why Choose OfferMarket for Fix and Flip Loans
At OfferMarket, weâre more than a lenderâweâre your partner in growing wealth through real estate. With a default rate below 0.5% across our entire portfolio, weâre committed to your success. Hereâs why investors trust us:
Expert Risk Management: We guide you to ensure each flip aligns with sound investment principles.
Flexible Financing: Benefit from competitive rates and versatile loan features designed for fix-and-flip scenarios.
Comprehensive Support: From the initial consultation to the last draw inspection, our team is here to help.
Fast Funding: Enjoy quick approvals and speedy disbursements to keep your project on track.
Key Features of Our Fix and Flip Loans
| Feature | Details |
|---|---|
| Loan Amounts | $25,000 up to $2,000,000âready to fund any size of project. |
| High Leverage | Up to 90% of purchase price and 100% of rehab, max 75% LTARV. |
| No Experience Needed | First-time flippers can start at 80% leverage, with seasoned investors qualifying for up to 90%. |
| Fast Funding | Rapid initial advances plus 0â2 business day draw approvals for construction. |
| Flexible Terms | Loan durations range from 12 to 24 months, with no prepayment penalties. |
| Tailored Risk Management | Rehab scope eligibility matches your experience tier, ensuring safe, successful ventures. |
| Nationwide Reach | Available in most U.S. states, complemented by localized market expertise. |
| Transparent Costs | Minimal hidden feesâ1.5 to 2 points, plus straightforward per-draw and wire fees. |
Example: Flipping a $130,000 Property in New Mexico with OfferMarket
Letâs walk through a second example that highlights our program in action for a more affordable property.
Purchase Price: $130,000
Rehab Budget: $25,000 (moderate scope, about 19% of purchase price)
ARV: $190,000 (supported by local comps)
Your Profile: Experienced Investor (Tier 4), 720 credit score
| Loan Component | Amount |
|---|---|
| Initial Advance | $117,000 (90% of $130,000) |
| Construction Holdback | $25,000 (100% rehab costs) |
| Total Loan Amount | $142,000 |
| Down Payment | $13,000 |
| Interest Rate | 10% (current market quote) |
| Interest (9 months) | ~$10,650 (accrued) |
| Fees | ~$2,200 (origination, draw/wire) |
Ready to Flip in New Mexico? Request Your Loan Now!
New Mexicoâs real estate market is brimming with opportunities for fix-and-flip investors. With OfferMarketâs Fix and Flip Loan Program, youâll have the capital, guidance, and adaptability you need to thrive. From our efficient approval process to our clear documentation and competitive terms, we make it simple to embark on your next profitable flip.
Ready to get started? Begin your loan application today and let OfferMarket help you transform your fix-and-flip goals into reality in the Land of Enchantment!
Thousands of real estate investors get value from OfferMarket every month. Membership is entirely free and includes the following benefits:
đ° Private lending âď¸ Insurance rate shopping đď¸ Off market properties đĄ Market insights
