Minnesota Fix and Flip Loan
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Last Updated: April 12, 2025
Welcome to OfferMarketâs Fix and Flip Loan Program for Minnesota! Whether youâre embarking on your very first renovation or youâve been flipping properties for years, our program is specifically designed to give you both the financial flexibility and practical support you need. Below, youâll find 12 core details about our program that will help you apply with clarity and jumpstart your next project in the Land of 10,000 Lakes.
What You Get with OfferMarketâs Fix and Flip Loan in Minnesota
Weâve crafted a versatile financing solution aimed at making fix-and-flip ventures more achievable for Minnesota investors. Whether youâre just starting out or have a long track record, our loans, resources, and personalized guidance can drive your next renovation from start to successful finish. Hereâs what youâll gain by choosing OfferMarket for your next flip in Minnesota.
1. Loan Amount Details
Minimum: $25,000 â a practical option if youâre handling a smaller rehab or want to test the waters of flipping.
Maximum: $2,000,000 â for large-scale projects; eligibility typically requires 3+ years of flipping experience and strong comparable sales.
How It Works: Your loan size is linked to the purchase price, rehab budget, and After Repair Value (ARV), ensuring youâre funded appropriately for your unique flip.
2. After Repair Value (ARV) Requirements
Minimum ARV: $100,000 â helps ensure the profit potential is worth your time and effort.
Maximum Loan-to-ARV (LTARV): Up to 75%, adjusted based on your track record:
70% for those newer to flipping (generally lighter scopes of work).
75% for experienced flippers tackling moderate renovations.
Valuation: We rely on professional appraisal reports (e.g., 1004 + 1007 for single-family homes) or in-house assessments to pinpoint the most accurate ARV.
3. Funding Breakdown
Initial Advance: Up to 90% of the purchase price:
80% if youâre still building your flipping rĂŠsumĂŠ.
90% if youâve already completed 5+ flips.
Construction Holdback: We can finance up to 100% of your rehab expenses, released through quick, app-based draw requests (0â2 day processing time).
Down Payment: A minimum of $10,000 applies to deals under $100K.
Draws: No rigid limits on draw requests. Weâre also willing to fund up to 50% of materials once theyâre delivered, even if installation hasnât begun.
4. Interest Rate and Fees
Interest Rate: Determined by current market conditions; reach out for a personalized quote.
Origination Fee: 1.5â2 points (for instance, 2 points on a $100,000 loan equals $2,000 at closing).
Other Fees:
$270 per draw.
$30 for each wire transfer.
Appraisal costs paid separately by the borrower.
Interest Accrual:
For loans under $100K, interest is calculated on the entire loan amount.
For loans $100K and above, interest is charged only on the portion already disbursed.
5. Loan Term
Duration: Typically 12 months, though we can be flexible for more extensive projects or unique circumstances.
Extensions: You may extend for up to half of your original term (e.g., 6 months on a 12-month loan) for an additional cost:
1% fee for a 3-month extension.
2.5% fee for a 6-month extension.
6. Repayment Structure
Monthly Payments: Interest-only installments, with the principal due in a balloon payment at the end.
Prepayment Penalty: None â feel free to wrap up your loan as soon as youâre ready.
Recourse: These loans are full recourse. When purchasing, a minimum of 51% ownership in your LLC or corporation must guarantee the loan. For refinances, full ownership guarantees are required.
7. Exit Strategy Requirements
Sale: Aim for a return on investment (ROI) of at least 30% and a minimum net profit of $15,000.
Refinance: Plan for a Debt Service Coverage Ratio (DSCR) of around 1.1 after the renovation is complete.
Flexibility: Change your planâflip or rentâbased on Minnesotaâs evolving real estate conditions. Weâre here to support your final choice.
8. Eligibility Criteria
Experience: We welcome beginners, who start at Tier 1 (80% initial advance). If youâve completed 10 or more deals, you could reach Tier 5 (90% advance).
Credit Score: A minimum of 680 is typical; however, weâll consider 660â679 in certain cases.
Borrowing Entity: Loans must be taken out through an LLC or a corporation.
Cash Reserves: Youâll need liquid capital for closing costs and at least 25% of your renovation budget on hand (bank, brokerage, or retirement accounts all qualify).
9. Project and Property Requirements
Eligible Properties:
- One- to four-unit residential (single-family homes, duplexes, triplexes, quadplexes), condos, townhomes, and PUDs.
Size Minimums:
700 sq ft for single-family homes.
500 sq ft for each unit in duplexes, triplexes, and quadplexes.
500 sq ft for condos.
Maximum Acreage: 5 acres, catering to those who prefer out-of-town renovations.
Scope of Rehab: Ranges from light (under 25% of purchase price) to substantial (100%+ of purchase price), with your allowed scope tied to your experience level.
Location: We fund projects in Minnesota, excluding AK, AZ, HI, ND, NV, OR, SD, UT, and VT. Rural properties in MN may be subject to a -20% advance adjustment and generally require at least 3 years of fix-and-flip experience.
10. Risk and Approval Process
Underwriting: We look at factors such as your propertyâs ARV, the extent of rehab, your flipping experience, and the health of the local market (e.g., Minneapolis or Duluth comps).
Valuation: Either professional appraisals or in-house valuations can be used, depending on your particular deal.
Approval Timeline: Once you submit the necessary documents, we work quickly to finalize funding. Post-funding draws typically take 0â2 days to process.
Default Rate: Under 0.5% of our loans go into default, reflecting our dedication to supporting profitable deals.
11. Support and Flexibility
Guidance: Our experts assist you throughout each stage of the flip. We offer practical resources like budgeting calculators and rehab scope recommendations suited to Minnesotaâs market.
Rehab Control: Youâre in charge of your propertyâs transformation, with app-based draw inspections and progress tracking that put you in the driverâs seat.
Advanced Draws: Depending on your circumstances, we may approve advanced draws to keep your work on schedule. This is evaluated case by case based on your projectâs viability.
12. Transparency and Fine Print
Sample Costs: Letâs illustrate with a hypothetical property in Minnesota priced at $140,000:
Purchase Price: $140,000
ARV: $220,000
Loan-to-ARV: Up to 75% = $165,000
Initial Advance: Potentially 90% of $140,000 = $126,000, if youâre highly experienced.
Construction Holdback: Up to 100% of your rehab costs, available through draw requests.
Fees:
Origination fee (2 points) = $2,800.
Draw fees = $270 per draw.
Wire fees = $30 each.
Appraisal paid by the borrower.
Hidden Costs: Expect additional fees like:
$270 per draw.
$30 per wire.
Extension fees, should you need a longer term (1% for an extra 3 months, 2.5% for 6 months).
Rural & Complex Projects:
Rural Minnesota deals could see a -20% advance adjustment due to lower market liquidity.
For major rehabs exceeding 100% of purchase price, our terms may cap at 70% LTARV or 85â90% Loan-to-Full-Cost (LTFC), depending on complexity.
Why a Fix and Flip Loan in Minnesota Is a Smart Move
Minnesotaâs housing market has shown strong demand, buoyed by a diverse economy and consistent growthâespecially in metropolitan areas like Minneapolis, St. Paul, and Rochester. Beyond the Twin Cities, plenty of smaller towns and lakeside communities also offer profitable flipping opportunities. By leveraging an OfferMarket fix and flip loan, you gain not just capital but also a partner who truly understands the dynamics of the Minnesota market. Whether you aim to renovate a classic brownstone or modernize a suburban home, our loan structure is engineered to bolster your success.
How You Can Make Profits with Our Fix and Flip Loan Program
Imagine youâve discovered a promising house in St. Paul priced at $140,000. Hereâs how you might tap into an OfferMarket loan to build wealth:
Property Purchase: You acquire the home for $140,000.
ARV: Your post-renovation valuation is forecast at $220,000.
Loan Amount: Up to 75% of $220,000 is $165,000, giving you ample funds for both purchase and rehab.
Initial Advance: If youâve completed multiple flips, you might qualify for 90% of the purchase price, equating to $126,000.
Rehab Funding: Access up to 100% of your renovation costs via straightforward draw requests.
Assuming rehab will cost around $35,000, a final sale near $220,000 would position you to earn a healthy returnâaiming for at least a 30% ROI or a $15,000 profit after factoring in fees, materials, and any holding costs.
Why Choose OfferMarket?
Weâre committed to delivering one of the most supportive fix and flip loan programs available in Minnesota. Whether youâre reviving a single-family home in Minneapolis or tackling a cottage up north, our approach offers:
Competitive Financing: Up to 90% of the purchase price, plus rehab coverage.
Flexible Terms: No penalties for early payoff and interest-only monthly payments.
Rapid Process: Quick handling of draws and transparent fee structures.
Personalized Service: Our experienced advisors offer insights tailored to Minnesotaâs distinct housing market.
Ready to begin your next flip in Minnesota? Request a fix and flip loan today and secure the financial foundation for your upcoming renovation project.
Minnesota Fix and Flip Loan: Documentation Requirements
To expedite approval, we require certain documentation. This ensures we have a clear picture of your intentions and remain in line with all necessary conditions. Below, youâll find the documents needed for both purchase and refinance deals in Minnesota.
Purchase Transaction Requirements
For purchase transactions, be prepared to provide:
| Loan File Section | Document |
|---|---|
| Purchase Contract | Fully executed agreement between buyer and seller. |
| Credit Report | Soft tri-merge credit report for each guarantor in the borrowing entity. |
| Background Report | Required for all guarantors. |
| Track Record | Demonstrates previous flips or real estate projects (if any). |
| ID Verification | Government-issued photo ID (driverâs license, passport, etc.). |
| Borrowing Entity | Formation docs for your LLC or corporation (e.g., Articles of Organization, Operating Agreement). |
| Scope of Work | A thorough budget and plan for renovations, guiding the ARV calculation. |
| Appraisal Report | Weâll send you a link to pay for the appraisal; once complete, itâs added to your loan file. |
| Bank Statements | Two most recent statements for each guarantor (personal or business accounts are acceptable). |
| Letter of Explanation | If underwriting requests clarification (e.g., large deposits, prior credit issues), provide details. |
Refinance Transaction Requirements
Refinances call for similar documentation:
| Loan File Section | Document |
|---|---|
| Settlement Statement | Fully executed by buyer and title/closing agent. |
| Credit Report | Soft tri-merge credit report for each guarantor. |
| Background Report | Required for each guarantor. |
| Track Record | Prior real estate experience. |
| ID Verification | Government-issued ID for each guarantor (driverâs license, passport, etc.). |
| Borrowing Entity | Entity docs (Articles, Operating Agreement/Bylaws, Certificate of Good Standing, W-9). |
| Sunk Costs | Itemized list of all money already spent on the property (materials, labor, etc.). |
| Scope of Work | A detailed renovation plan used to determine ARV and direct the rehab process. |
| Appraisal Report | Youâll receive a link to pay for the appraisal, which gets uploaded to your file upon completion. |
| Bank Statements | Two recent statements for each guarantor. |
| Letter of Explanation | If any unusual deposits or prior credit matters arise, an explanation is required for underwriting approval. |
Special Requirements for Loans Over $1M
For loans that exceed $1M (up to our $2M maximum), we enforce heightened standards to ensure the flip is both financially and operationally feasible:
| Criteria | Explanation |
|---|---|
| Experience | Preferably 3 or more projects of comparable or greater value, confirming your ability to handle larger deals. |
| Market Liquidity | Must have at least 3 recently sold comps in a 2-mile radius in the past 6 months to validate pricing. |
| Credit Score | Minimum of 680, plus 5 active tradelines with at least 2 years of payment history. |
| Rural Designation | If the property is labeled as rural by CFPB/USDA or flagged in the appraisal, it may not be eligible for high-value loans. |
| Track Record | All members of the borrowing entity must show relevant flipping experience to proceed. |
Glossary of Key Terms
Here is a brief glossary to clarify common terminology in our loan agreements:
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unitâan additional living space on the same lot as the main home. |
| Arms-Length | Transaction between unrelated parties, ensuring fair market value. |
| Non-Arms-Length | Transaction involving parties with a pre-existing relationship that may affect pricing. |
| Initial Advance | The portion of the total loan disbursed immediately to finance the property purchase. |
| Construction Holdback | Funds reserved specifically for renovation costs, released in segments as work progresses. |
| LTARV | Loan-to-After-Repair Value, showing the loan amount as a percentage of the expected value post-rehab. |
| LTC | Loan-to-Cost, comparing the loan amount to the sum of purchase price and rehab costs. |
| LTFC | Loan-to-Full-Cost, factoring in total expected expenses, including purchase and improvements. |
Get an Instant Fix and Flip Loan Quote in Minnesota
OfferMarket is your trusted ally for fix-and-flip investments in Minnesota. Our proven process, competitive terms, and fast funding options help you maximize returns while mitigating risk. Get started now by requesting an instant quote for your next fix-and-flip endeavor in the North Star State!
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