Montana Fix and Flip Loan
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Last Updated: April 13, 2025
Welcome to OfferMarketâs Fix and Flip Loan Program, created with Montana real estate investors in mind! Whether youâre flipping homes in Billings, renovating a property in Missoula, or exploring opportunities in the stateâs vast rural regions, our program gives you the capital and flexibility to succeed. Letâs dive into the details of how our loan program works, the essential terms, and what you can expect when you apply.
Why a Fix and Flip Loan in Montana is a Smart Investment
Montanaâs real estate market is as diverse as its landscape, ranging from the bustling hubs of Billings and Bozeman to scenic small towns and rural ranch properties. Whether youâre focusing on rapidly growing areas like Missoula and Kalispell or seeking undervalued opportunities in more remote parts of the state, you can benefit from our Fix and Flip Loan.
With a steady influx of new residents, ongoing job growth, and housing demand rising in key markets, Montana offers plenty of potential for property appreciation and profitable investments. By leveraging OfferMarketâs Fix and Flip Loan, youâll have the financial backing to purchase, renovate, and sell properties across the Treasure State for a rewarding return on your investment.
What You Get with OfferMarketâs Fix and Flip Loan in Montana
Our Fix and Flip Loan is structured to accommodate both newcomers and experienced investors. Hereâs a breakdown of what youâll receive when you choose our program:
1. Loan Amount Details
Minimum Loan Amount: $25,000 â Ideal for smaller, quick turnaround flips.
Maximum Loan Amount: $2,000,000 â Suited for larger-scale projects. Note that loans over $1M require a proven track record of 3+ years and robust comparable sales data.
How It Works: The loan size aligns with your purchase price, renovation budget, and After Repair Value (ARV), ensuring you receive the right amount of capital for your flip.
2. After Repair Value (ARV) Requirements
Minimum ARV: $100,000 â We set this threshold to help maintain profitable projects.
Maximum Loan-to-ARV (LTARV): Up to 75% â Your experience level will affect the exact amount. First-time flippers may qualify for 70%, while more seasoned investors can access 75%.
Valuation: We determine ARV through appraisals (e.g., 1004 + 1007 for single-family homes) or in-house assessments, helping us deliver accurate and fast valuations.
3. Funding Breakdown
Initial Advance: Up to 90% of the purchase price, depending on your background. Novices might receive 80%, while experienced investors can qualify for 90%. Adjustments apply for credit scores under 720 or if youâre a licensed contractor (+10%).
Construction Holdback: Up to 100% of your rehab costs, accessible through our app-based draw system. Expect quick disbursements, typically processed in 0â2 days.
Down Payment: For properties under $100K, a minimum down payment of $10,000 is required.
Draws: No strict minimum or maximum. Weâll fund 50% of your materials once theyâre delivered, even before installation, to help keep your project moving.
4. Interest Rates and Fees
Interest Rate: Varies with market conditions. Reach out for the latest rate on your specific Montana deal.
Origination Fee: 1.5 to 2 points (minimum $2,000). For instance, 2 points on a $100,000 loan equals a $2,000 fee at closing.
Other Fees: Each draw costs $270, and each wire transfer is $30. Appraisal fees are paid by the borrower.
Interest Accrual:
Loans under $100K: Interest charges apply to the full loan amount.
Loans over $100K: Interest accrues only on the funds actually disbursed.
5. Loan Term
Duration: Our standard term is 12 months, though 18- to 24-month options are available for more extensive renovations.
Extensions: You can extend for up to 50% of your initial term (e.g., 6 months on a 12-month loan). The fee is typically 1% for a 3-month extension or 2.5% for a 6-month extension.
6. Repayment Structure
Payments: Interest-only during the loan, with a balloon payment at maturity. This structure helps maintain liquidity for your ongoing renovation work.
Prepayment Penalty: None. If you finish early, you can pay off the loan without extra charges.
Recourse: Full recourse, requiring at least 51% of the borrowing entityâs ownership to guarantee purchases (100% for refinances).
7. Exit Strategy Requirements
Sale: We aim for a minimum 30% ROI and at least $15,000 in profit upon sale.
Refinance: A Debt Service Coverage Ratio (DSCR) of 1.1 or higher is recommended post-rehab to support successful refinancing.
Flexibility: Depending on market shifts in Montana, you can transition from flipping to renting if that strategy becomes more profitable.
8. Eligibility Criteria
Experience: Not mandatory. First-timers start at Tier 1 (80% advance), while advanced flippers reach Tier 5 (90%) with 10 or more completed projects.
Credit Score: Minimum of 680 (though 660â679 can be considered on a case-by-case basis).
Borrowing Entity: Must be set up as an LLC or Corporation.
Cash Reserves: Youâll need enough to cover your closing costs plus 25% of your renovation budget in liquid form (bank, brokerage, or retirement accounts).
9. Project and Property Requirements
Eligible Properties: 1â4 unit residential homes (single-family, duplex, triplex, or quadplex), condos (⼠500 sq ft), and townhomes/PUDs. Single-family properties should be âĽ700 sq ft, and multifamily units should be at least 500 sq ft per unit.
Maximum Acreage: Up to 5 acres, perfect for rural Montana flips that have some extra land.
Rehab Scope: From cosmetic touch-ups (under 25% of purchase price) to full overhauls (100%+). First-timers typically stick to light or moderate rehabs.
Location: We lend in Montana, excluding AK, AZ, HI, MN, ND, NV, OR, SD, UT, VT. Properties in especially rural areas face a -20% advance adjustment and require 3+ years of experience.
10. Risk and Approval Process
Underwriting: We review the ARV, the scope of renovations, your track record, and local market conditions (e.g., Billings comps vs. rural eastern Montana comps).
Valuation: Typically an appraisal, though some deals may qualify for our in-house valuation.
Approval Timeline: Once you provide all documents, initial funding can be swift. Draw requests are typically fulfilled within 0â2 days. Our low default rate (under 0.5%) reflects our dedication to your success.
11. Support and Flexibility
Guidance: We offer detailed rehab calculators and project analysis to help you plan effectively in Montanaâs unique markets.
Rehab Oversight: With self-serve draw inspections, you can maintain control over the project timeline.
Advanced Draws: When needed, we may issue advanced draws to ensure youâre never short on funds during critical renovation stages.
12. Transparency and Fine Print
Sample Costs: For a $150,000 Montana property, you might see:
Origination Fee (2 points): $2,000
Draw Fee: $270 per draw
Wire Fee: $30 per wire transfer
Rehab Costs: Up to 100% of the budget funded.
Hidden Costs: We disclose all draw, wire, and extension fees up front.
Rural/Complex Terms: Rural Montana projects trigger a -20% advance adjustment, and more complex rehabs can be capped at 70% LTARV or 85â90% Loan-to-Full-Cost (LTFC).
How You Can Profit from Montana Real Estate
Letâs walk through a hypothetical scenario in Billings, Montana, to show how the numbers might work:
Purchase Price: $160,000
Rehab Budget: $40,000
After Repair Value (ARV): $240,000
Loan Breakdown
Loan Amount (75% of ARV): $180,000
Upfront Funding (90% of purchase price for experienced investors): $144,000
Down Payment: $16,000
Rehab Funds: $40,000 in a construction holdback, available through draws
Once you renovate and list the property for $240,000, youâll repay the loan and keep your profit after rehab expenses, fees, and other costs. Depending on your final sale price and project management, this can translate into a significant profit margin.
Why Choose OfferMarket for Your Fix and Flip Loan in Montana?
1. Competitive Loan Terms
At OfferMarket, we understand that having sufficient capital at your disposal can make or break a fix-and-flip project. Thatâs why we provide highly competitive loan termsâfinancing up to 90% of the project. This high LTV ratio empowers both new and experienced investors to allocate funds toward essential renovations, upgrades, and strategic improvements without tying up all of their own capital. By freeing up this cash flow, youâll be better positioned to manage unforeseen expenses, invest in multiple properties, and capitalize on additional opportunities in Montanaâs thriving real estate market.
2. Experienced Advisors
When you partner with OfferMarket, youâre not just signing up for a loan; youâre gaining a support system of industry experts. Our team members have deep experience in all facets of real estateâfrom property valuation and rehab planning to market analysis and exit strategies. We keep abreast of the latest trends, regulations, and best practices in Montana, allowing us to offer customized insights for your specific project. Whether youâre clarifying construction timelines, projecting profits, or dealing with contractor coordination, our advisors are here to guide you, helping you build a solid foundation for long-term success.
3. Fast Processing
Time is of the essence in any fix-and-flip venture. Delays in funding can lead to missed opportunities, increased holding costs, and frustrated contractors. At OfferMarket, we prioritize speed and efficiency, ensuring loan approvals and draw disbursements are processed quicklyâoften within just a few days. Our streamlined platform and self-serve app-based draw requests let you stay in control of your project timeline. With OfferMarket, youâll never have to worry about stalled progress or unexpected financing bottlenecks.
4. No Prepayment Penalties
Unlike traditional financing options that penalize early payments, our loans let you maintain control over your exit strategy. If you complete your rehab ahead of schedule and secure a profitable saleâor simply decide to refinance soonerâyou can pay off your loan without incurring any additional charges. This flexibility allows you to maximize your returns and pivot swiftly to your next investment, which is particularly advantageous in Montanaâs competitive real estate climate.
5. Transparency and Flexibility
We believe trust is built on honesty and clarity. From the moment you apply for a loan until you finalize your exit strategy, weâll keep you informed about all costs and terms associated with your financing. There are no hidden fees to surprise you midway through a project, and we adjust loan parametersâlike draw schedules or rehab scope requirementsâbased on your experience level and the propertyâs unique features. This approach helps you plan effectively, remain adaptable, and maintain confidence in your budget, enabling you to focus on what truly matters: completing a successful and profitable flip.
Montana Fix and Flip Loan: Documentation Requirements
For a smooth approval process, we require certain documents for both purchase and refinance transactions in Montana. This ensures your project meets our criteria and that we understand its scope.
Purchase Transaction Requirements
| Loan File Section | Document |
|---|---|
| Purchase Contract | Fully executed by buyer and seller. |
| Credit Report | Soft tri-merge for each guarantor in the borrowing entity. |
| Background Report | Mandatory for each member of the borrowing entity. |
| Track Record | Proof of completed projects or relevant experience. |
| ID Verification | Valid government-issued ID (driverâs license, passport, etc.). |
| Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9. |
| Scope of Work | Detailed rehab budget for ARV assessment. |
| Appraisal Report | Youâll get a payment link; the final report goes into your file. |
| Bank Statements | Most recent two (2) statements for each guarantor. Personal or retirement accounts are acceptable. |
| Letter of Explanation | If underwriting requests it (e.g., large deposits, late payments, background items). |
Refinance Transaction Requirements
| Loan File Section | Document |
|---|---|
| Settlement Statement | Fully executed by the buyer and settlement agent. |
| Credit Report | Soft tri-merge for each guarantor in the borrowing entity. |
| Background Report | Mandatory for each member of the borrowing entity. |
| Track Record | Proof of completed projects or relevant experience. |
| ID Verification | Valid government-issued ID (e.g., driverâs license, passport, etc.). |
| Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9. |
| Sunk Costs | Itemized list of all funds already spent on the property. |
| Scope of Work | Detailed rehab budget to finalize ARV calculations and project scope. |
| Appraisal Report | Youâll receive a payment link; the completed appraisal will be added to your file. |
| Bank Statements | Two (2) most recent statements for each guarantor (personal accounts allowed). |
| Letter of Explanation | If needed by underwriting (e.g., large deposits, late payments). |
Special Requirements for Loans Over $1M
For projects exceeding $1M (up to our $2M cap), additional safeguards ensure both the viability of your deal and your capacity to manage it:
| Criteria | Explanation |
|---|---|
| Experience | At least 3 comparable or higher-priced deals in your portfolio is strongly preferred. |
| Market Liquidity | A minimum of 3 comparable sales within a 2-mile radius on the MLS in the last 6 months. |
| Credit Score | 680 or above, with at least 5 trade lines and 24 months of credit history. |
| Rural Designation | If classified as rural by the CFPB, USDA, or the appraisal report, the property may not be eligible for $1M+ loans. |
| Track Record | Each member of the borrowing entity must demonstrate relevant project history. |
Glossary of Key Terms
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unitâan additional residential space on the same lot as the main dwelling. |
| Arms-Length | Transaction between unrelated parties, ensuring fair market value. |
| Non-Arms-Length | Transaction involving connected parties, which can complicate the valuation process. |
| Initial Advance | The segment of your total loan allocated toward purchasing the property. |
| Construction Holdback | The part of your loan set aside for renovation costs, released via draw requests. |
| LTARV | Loan-to-After-Repair Valueâa ratio comparing your loan amount to the anticipated value post-renovation. |
| LTC | Loan-to-Costâcompares the loan amount to the sum of purchase and rehab costs. |
| LTFC | Loan-to-Full-Costâcompares the entire loan to the total project budget (purchase + rehab). |
Get an Instant Fix and Flip Loan Quote in Montana
OfferMarket is committed to helping you excel in Montanaâs real estate market. Our Fix and Flip Loan program provides the financial flexibility and competitive terms you need for success. Request your instant quote today and take a confident step toward profitable real estate deals under Montanaâs big sky!
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