Florida Fix and Flip Loan
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Last Updated: April 9, 2025
Are you ready to take advantage of Florida's dynamic real estate market? Whether youāre flipping homes in bustling cities like Miami, Fort Lauderdale, or Tampa, or targeting quiet properties in Gainesville and Tallahassee, OfferMarketās Fix and Flip Loan Program is here to help you turn your investment vision into reality. We offer fast, reliable, and low-cost capital to help you purchase and renovate residential propertiesāwhether you're new to real estate or an experienced investor.
Letās explore how our program works in Florida, why itās the perfect time to dive into the market, and how OfferMarketās financing can fuel your next successful project.
What is a Fix and Flip Loan?
A Fix and Flip Loanāsometimes referred to as a "hard money loan" or "bridge loan"āis designed to help you purchase and renovate properties with the goal of selling them for a profit or refinancing them into rental properties. At OfferMarket, your loan consists of two components:
- Initial Advance: Up to 90% of the purchase priceāwired directly to the title company at closing.
- Construction Holdback: Up to 100% of your rehab costsādisbursed via draw reimbursement as work progresses.
The best part? You choose your exit strategyāflip for a fast profit, or refinance into a rental property. With market conditions changing frequently, having a flexible exit strategy ensures you can pivot as needed.
Why Floridaās Real Estate Market Is Ideal for Fix and Flip Projects
Florida is known for its diverse and thriving real estate market. From the vibrant coastal cities like Miami to the booming areas of Orlando and Jacksonville, the state offers something for every investor. Key factors that make Florida an attractive location for real estate investors include:
- Strong Job Market: With major industries like tourism, tech, and healthcare booming, Floridaās population continues to grow, creating a strong demand for renovated properties.
- High Demand for Rentals and Resale: Florida's consistent influx of tourists and new residents ensures a stable demand for rental properties and a healthy resale market.
- Diverse Property Types: From single-family homes to multi-unit buildings, Floridaās real estate market caters to every type of investor, making it an ideal location for both first-time flippers and experienced developers.
Whether you're eyeing a property in downtown Miami or a rural flip in the heart of Florida's countryside, OfferMarket's Fix and Flip Loan can be your key to success in the Sunshine State.
What You Get with Our Fix and Flip Loan Program in Florida
Hereās a breakdown of what youāll get when you choose OfferMarket for your next fix and flip project in Florida. Weāve made sure every detail is clear, so you can move forward with confidence.
1. Loan Amount Details
| Criteria | Details |
|---|---|
| Minimum Loan Amount | $25,000 |
| Maximum Loan Amount | $2,000,000 |
| How Itās Determined | Based on the purchase price, rehab budget, and ARV (After Repair Value). Our loans ensure you have enough capital for every aspect of the project. |
2. After Repair Value (ARV) Requirements
- Minimum ARV: $100,000āhelps ensure profitability.
- Maximum Loan-to-ARV (LTARV): Up to 75%, with adjustments for experience.
- 70% for more complex rehabs or less experienced investors.
- ARV Calculation:
We use appraisal reports or in-house valuations to provide quick, accurate estimates of your propertyās value after rehab.
3. Funding Breakdown
| Funding Component | Details |
|---|---|
| Initial Advance | Up to 90% of the purchase price based on experience (80% for beginners, 90% for seasoned investors). |
| Construction Holdback | Up to 100% of rehab costs, disbursed via self-serve draw requests. |
| Down Payment | Minimum $10,000 required for properties under $100K. |
| Draw Schedule | Flexible with no minimum or maximum number of draws. 50% funded for materials delivered but not installed. |
4. Interest Rate and Fees
| Fee | Amount |
|---|---|
| Interest Rate | Market-based, customized for each deal. |
| Origination Fee | 1.5% to 2 points ($2,000 minimum). |
| Other Fees | $270 per draw; $30 wire fee; appraisal costs paid by the borrower. |
| Interest Accrual | Loans under $100K: Full Boat (interest on total loan amount). Loans over $100K: As Disbursed (interest on funds drawn). |
5. Loan Term
- Duration: Standard term of 12 months, with 18-24 months for specific projects requiring additional time.
- Extensions:
- Up to 50% of the original term (e.g., 6 months 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: Noneāno penalties for early repayment.
- Recourse: Full recourse, with 51% of the borrowing entity required to guarantee for purchases, and 100% for refinances.
7. Exit Strategy Requirements
- Sale:
- Minimum 30% ROI
- Minimum $15,000 profit.
- Refinance:
- Minimum 1.1 DSCR (Debt Service Coverage Ratio) after repairs.
- Flexibility:
Flip or refinance depending on the market conditionsāour program supports both strategies in Floridaās dynamic real estate environment.
8. Eligibility Criteria
| Criteria | Details |
|---|---|
| Experience | Not required. Beginners start at Tier 1 (80% advance), experienced investors move to Tier 5 (90%). |
| Credit Score | 680 minimum, with exceptions for 660-679. |
| Borrowing Entity | LLC or Corporation only. |
| Cash Reserves | Cash to close + 25% of rehab budget in liquid assets required. |
9. Project and Property Requirements
| Requirement | Details |
|---|---|
| Eligible Property Types | 1-4 unit residential properties (single-family, duplex, triplex, quadplex, condos, townhomes, PUDs). |
| Minimum Square Footage | Single-family: ā„ 700 sq ft 2-4 unit: ā„ 500 sq ft per unit Condo: ā„ 500 sq ft |
| Maximum Acreage | 5 acresāperfect for rural flips in Florida. |
| Rehab Scope | Light, Moderate, Heavy, and Extensive rehab scopes allowed based on experience. |
10. Risk and Approval Process
- Underwriting: We assess ARV, rehab scope, market conditions, and credit to determine the best financing for your project.
- Valuation: We require either an appraisal report or an in-house valuation to determine ARV.
- Approval Timeline:
- Draws: 0-2 days for approval.
- Initial Funding: Depends on how quickly you submit documentsāOfferMarket is quick and efficient.
- Default Rate: Less than 0.5% of our loans have ever defaulted, proving our commitment to your success.
11. Support and Flexibility
- Guidance: Our deal advisors help guide you every step of the way, providing rehab calculators and scope advice.
- Rehab Oversight: App-based draw inspections help you maintain control and transparency throughout the project.
- Advanced Draws: Discretionary draws at our approval, ensuring youāre funded as you need it.
12. Transparency and Fine Print
- Sample Costs:
- For a $150,000 Florida property, a beginner investor (Tier 1) might pay $10,687 in interest over 9 months, with total fees of $2,850.
- Hidden Costs:
- Draw fees ($270), wire fees ($30), and extension fees are fully disclosed upfront.
- Rural and Complex Projects:
- For rural areas, there is a -20% advance and 3+ years of experience required.
Example: Flipping a $175,000 Property in Florida with OfferMarket
Letās walk through a real-world example of how our Fix and Flip Loan works for you in Florida:
Purchase Price: $175,000
Rehab Budget: $40,000 (moderate scope, 22.86% of purchase price)
ARV: $250,000 (based on Florida market comps)
Your Profile: Experienced Investor (Tier 4), 720 credit score
- Initial Advance: 90% of purchase price = $157,500
- Construction Holdback: $40,000 (100% rehab costs)
- Total Loan Amount: $197,500
- Down Payment: $17,500
- Interest Rate: 10% (market quote)
- Interest: $14,812 (accrued on total loan amount for 9 months)
- Fees: $2,000 origination, $270 draw fee, $30 wire fee
- Profit: $250,000 (Sale Price) - $175,000 (Purchase) - $40,000 (Rehab) - $14,812 (Interest) - $2,270 (Fees) = $18,918 Profit
With an ROI of 36%, this project shows that OfferMarketās financing works for Floridaās fix-and-flip market.
Required Documentation for Fix and Flip Loans
At OfferMarket, we strive to make the loan process as seamless and efficient as possible. Our Loan File system ensures that all your documents are securely stored in your OfferMarket account for future use, speeding up future loan applications and keeping everything organized. Below is the required documentation for both purchase and refinance transactions to ensure a smooth and speedy approval process.
Purchase Transaction Requirements
For a purchase transaction, you will need to submit the following documentation:
| Required Document | Details |
|---|---|
| Purchase Contract | Fully executed by both buyer and seller. |
| Credit Report | Soft tri-merge credit report for each member of the borrowing entity acting as a guarantor. |
| 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 (e.g., driverās license, passport, or Green Card). |
| Borrowing Entity Documents | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9. |
| Scope of Work | A detailed rehab budget used to calculate the After Repair Value (ARV). |
| Appraisal Report | A link to pay for the appraisal invoice will be provided, and the appraisal will be uploaded to your loan file. |
| Bank Statements | Two most recent statements for each guarantor. Personal accounts (bank, brokerage, retirement) are acceptable. |
| Letter of Explanation | If requested by our underwriting team (e.g., large deposits, late payments, or background items). |
Refinance Transaction Requirements
For a refinance transaction, the documentation required includes:
| Required Document | Details |
|---|---|
| Settlement Statement | Fully executed by buyer and settlement agent. |
| Credit Report | Soft tri-merge credit report for each member of the borrowing entity acting as a guarantor. |
| 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 (e.g., driverās license, passport, or Green Card). |
| Borrowing Entity Documents | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9. |
| Sunk Costs | The line items and associated costs that have already been incurred. |
| Scope of Work | Detailed rehab budget to calculate ARV and guide rehab work. |
| Appraisal Report | A link to pay the appraisal invoice will be provided, and the appraisal will be uploaded to your loan file. |
| Bank Statements | Two most recent statements for each guarantor. Personal accounts (bank, brokerage, retirement) are acceptable. |
| Letter of Explanation | If requested by our underwriting team (e.g., large deposits, late payments, or background items). |
Special Requirements for Loans Over $1M
Loans greater than $1M (up to the $2M maximum) come with adjusted guidelines due to the higher stakes involved. Hereās what you need to qualify for a loan over $1M:
| Criteria | Explanation |
|---|---|
| Experience | Minimum of 3 completed projects, ideally at a similar or higher price point. |
| Market Liquidity | 3 comparable sales within a 2-mile radius, sold on the MLS within the last 6 months. |
| Credit Score | Minimum 680 FICO with at least 5 trade lines and 24-month history. |
| Rural Designation | Not eligible if designated rural by the CFPB and USDA or per the appraisal report. Use our Rural Designation Search Tool to check. |
| Track Record | Required for each member of the borrowing entity. |
Why This Documentation Matters
Having your documents in order ensures that we can process your loan as quickly and accurately as possible. This allows for faster approval, and smoother funding, and sets you up for success with your fix-and-flip project. With OfferMarket, you wonāt have to worry about a long approval processāwe keep your documents securely stored for future transactions, making subsequent loan applications quicker and easier.
Why Choose OfferMarket for Fix and Flip Loans
At OfferMarket, we are more than just a lenderāwe are your partner in building wealth through real estate. With an exceptional default rate of less than 0.5% across our lending portfolio, we are committed to helping investors like you succeed in the fix-and-flip market. Hereās what sets us apart:
- Expert Risk Management: We provide structured guidance, ensuring every deal is a strategic success.
- Flexible Financing: Our loan terms are tailored to fit your project, with competitive rates and a variety of options.
- Comprehensive Support: From loan advice to rehab planning, we are with you every step of the way.
- Fast Funding: Receive fast approval and quick disbursement for your fix-and-flip projects, so you can start working immediately.
Key Features of Our Fix and Flip Loans
| Feature | Details |
|---|---|
| Loan Amounts | $25,000 to $2,000,000 to suit projects of any size. |
| High Leverage | Up to 90% of the purchase price and 100% of rehab costs, with a max 75% LTARV. |
| No Experience Required | Our loan program is accessible for new investors, with higher leverage for seasoned flippers. |
| Fast Funding | Quick initial advances and fast draw processing (0-2 business days) for construction costs. |
| Flexible Terms | Loan terms from 12 to 24 months, with no prepayment penalties. |
| Tailored Risk Management | Rehab scope eligibility and experience tiers ensure manageable projects. |
| Nationwide Reach | Available in most U.S. states, with expert support for your local market. |
| Transparent Costs | Competitive rates, 1.5-2 points, and no hidden fees. |
Example: Flipping a $150,000 Property in Florida with OfferMarket
Letās walk through an example of how OfferMarket can help you flip a property in Florida. Suppose you find a fixer-upper in Orlando and want to turn it into a profitable flip. Here's how our Fix and Flip Loan could work:
| Purchase Price | $150,000 |
|---|---|
| Rehab Budget | $30,000 (moderate scope, 20% of purchase price) |
| ARV | $220,000 (based on local comps) |
| Your Profile | Experienced Investor (Tier 4), 720 credit score |
| Loan Component | Amount |
|---|---|
| Initial Advance | $135,000 (90% of the purchase price) |
| Construction Holdback | $30,000 (100% of rehab costs) |
| Total Loan Amount | $165,000 |
| Down Payment | $15,000 |
| Interest Rate | 10% (market quote) |
| Interest | $12,375 (accrued on total loan amount for 9 months) |
| Fees | $2,200 (origination + draw/wire fees) |
| Sale Price | $220,000 |
| Profit | $220,000 - $150,000 (purchase) - $30,000 (rehab) - $12,375 (interest) - $2,200 (fees) = $25,425 |
With an ROI of 35%, this example proves that OfferMarketās financing works in Floridaās vibrant real estate market.
Ready to Flip in Florida? Request Your Loan Now!
Floridaās real estate market is waiting for your next fix and flip project. With OfferMarketās Fix and Flip Loan Program, you get the capital, guidance, and flexibility needed to succeed. Our fast approvals, flexible terms, and clear documentation process make it easier than ever to get started on your next profitable investment.
Ready to take the next step? Start your loan application now and let us help you turn your fix-and-flip dreams into reality.
Get an Instant Fix and Flip Loan Quote in Florida
OfferMarket is your trusted partner for real estate investing in Florida. 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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