Tennessee Fix and Flip Loan

Last Updated: April 14, 2025

Welcome to OfferMarket’s Fix and Flip Loan Program—now specially crafted for real estate investors in Tennessee. Whether you’re rejuvenating a classic bungalow in Nashville, working on a contemporary project in Memphis, or venturing into the scenic rural areas of Knoxville, our financing solutions are designed to fuel your success.

Our loan program is meticulously structured to meet your individual needs, ensuring that you secure the capital necessary to turn your next fix-and-flip project in Tennessee into a profitable venture.

Why a Fix and Flip Loan in Tennessee Is a Smart Investment

Tennessee’s real estate market is burgeoning with opportunity. From the lively urban centers of Nashville, Memphis, and Knoxville to its charming rural communities, the state offers a distinctive mix of robust returns and attractive entry points.
Key economic drivers like healthcare, tourism, manufacturing, and a booming entertainment industry power the state’s growth. Cities such as Nashville are experiencing significant population growth and economic expansion, leading to increased demand for quality housing. Coupled with comparatively modest property prices and steady appreciation, Tennessee provides ample room for lucrative fix-and-flip projects.

No matter if you’re eyeing a cozy single-family home or a multi-unit property, OfferMarket’s Fix and Flip Loan program is here to equip you with the capital and flexibility to harness Tennessee’s dynamic real estate potential.

What You Get with OfferMarket’s Fix and Flip Loan in Tennessee

At OfferMarket, we ensure you have the funding necessary to successfully flip properties throughout Tennessee. Our comprehensive program is designed to cater to projects ranging from small renovations to large-scale redevelopments. Below is an in-depth look at the key elements of our program:

1. Loan Amount Details

• Minimum Loan Amount: $25,000 – Perfect for more modest or expedited flips.

• Maximum Loan Amount: $2,000,000 – For expansive projects; note that loans over $1M require a minimum of 3 years’ experience and strong comparable sales (comps).

• How It Works: The loan size is calculated based on the purchase price, rehab budget, and After Repair Value (ARV), ensuring you are well-capitalized to complete your project.

2. After Repair Value (ARV) Requirements

• Minimum ARV: $100,000 – Guarantees that your project maintains profitability.

• Maximum Loan-to-ARV (LTARV): Up to 75% – Adjustments are made based on investor experience. Novices might secure up to 70% for minor rehabs, while seasoned investors can access 75% for more comprehensive renovations.

• Valuation: We rely on professional appraisal reports (such as the 1004 + 1007 forms for single-family homes) or our in-house valuations for precise ARV estimates in Tennessee’s market.

3. Funding Breakdown

• Initial Advance: Up to 90% of the purchase price—90% for those with 5+ projects under their belt, and 80% for beginners, adjusted based on creditworthiness.

• Construction Holdback: Up to 100% of rehab costs is available, with funds disbursed via a streamlined, app-based draw request system within 0-2 days.

• Down Payment: A minimum of $10,000 is required for properties priced under $100K.

• Draws: There is no set minimum or maximum; for example, we fund 50% for materials that have been delivered but not yet installed.

4. Interest Rates and Fees

• Interest Rate: Offered on flexible terms reflective of current market conditions—please contact us for the latest rates.

• Origination Fee: Ranges between 1.5 to 2 points (with a minimum charge of $2,000). For instance, 2 points on a qualifying loan amount will start at $2,000.

• Other Fees: Include a $270 charge per draw, a $30 fee per wire transfer, and appraisal costs which are the responsibility of the borrower.

• Interest Accrual: Loans under $100K accrue interest on the full amount, while loans above $100K accrue interest only on the funds that have been disbursed.

5. Loan Term

• Duration: Standard term is 12 months, with some projects qualifying for extensions up to 18-24 months.

• Extensions: You may extend your loan term by up to 50% (e.g., 6 months on a 12-month term) for an additional fee (1% for 3 months, 2.5% for 6 months).

6. Repayment Structure

• Payments: Enjoy interest-only payments during the rehab phase with a final balloon payment due at maturity, helping you manage cash flow during renovations.

• Prepayment Penalty: None—repay early without incurring extra fees.

• Recourse: Full recourse applies, with 51% of your LLC or Corporation guaranteeing the loan for purchases (and 100% for refinances).

7. Exit Strategy Requirements

• Sale: A minimum 30% return on investment (ROI) and at least $15,000 profit upon sale is expected.

• Refinance: A minimum debt service coverage ratio (DSCR) of 1.1 post-repair is required for refinancing.

• Flexibility: You can choose whether to flip or rent the property depending on current Tennessee market conditions.

8. Eligibility Criteria

• Experience: Not mandatory—novices operate under Tier 1 (80% advance), while experienced investors qualify for Tier 5 (90% advance).

• Credit Score: A minimum score of 680 is required, with possible exceptions for scores between 660-679.

• Borrowing Entity: Must be structured as an LLC or Corporation.

• Cash Reserves: You’ll need sufficient funds to close and hold 25% of your rehab budget in liquid assets (this may include bank, brokerage, or retirement accounts).

9. Project and Property Requirements

• Eligible Properties: Includes 1-4 unit residential properties—single-family homes (minimum 700 sq ft), duplex/triplex/quadplex units (minimum 500 sq ft per unit), condos (minimum 500 sq ft), townhomes, and planned unit developments (PUDs).

• Maximum Acreage: Up to 5 acres—ideal for rural flips in Tennessee.

• Rehab Scope: Can range from light (under 25% of the purchase price) to extensive (over 100% of the purchase price). Note that beginners are restricted to light or moderate rehabs.

• Location: We lend exclusively in Tennessee. Rural projects, however, receive a -20% advance adjustment and necessitate a minimum of 3 years’ experience.

10. Risk and Approval Process

• Underwriting: We evaluate ARV, the extent of the rehab, your expertise, and prevailing market conditions.

• Valuation: Determined either via independent appraisal or in-house analysis, tailored to your project.

• Approval Timeline: Draw requests are processed within 0-2 days, and initial funding is contingent on timely submission of your documentation. We strive for a swift and efficient process.

• Default Rate: Fewer than 0.5% of our loans have ever defaulted—your success is paramount to us.

11. Support and Flexibility

• Guidance: Benefit from our suite of rehab calculators and expert advice specific to Tennessee projects.

• Rehab Oversight: Manage your project with self-serve draw inspections that give you full control over the disbursement process.

• Advanced Draws: At our discretion, additional funding may be released throughout the project to ensure smooth progress.

12. Transparency and Fine Print

• Sample Costs: For a $160,000 Tennessee property, expect the following:

  • Origination Fee (2 points): $2,000 minimum

  • Draw Fee: $270 per draw

  • Wire Fee: $30 per transfer

  • Rehab Costs: Up to 100% of the determined rehab budget.

• Hidden Costs: All fees—draw, wire, and extension fees—are disclosed upfront.

• Rural/Complex Terms: Rural Tennessee flips benefit from a -20% advance adjustment, and extensive rehab projects may be subject to caps of 70% LTARV or 85-90% Loan-to-Full-Cost (LTFC).

How You Can Profit from Tennessee Real Estate

Let’s explore an example in Nashville, Tennessee, to illustrate how our Fix and Flip Loan Program functions:

• Purchase Price: $200,000

• Rehab Budget: $55,000

• After Repair Value (ARV): $300,000

With a maximum loan-to-ARV of 75%, you could be approved for up to $225,000 in financing. Below is the loan breakdown:

Once renovations are complete and the property is sold for $300,000, you’ll repay the loan and capture your profit after covering rehab expenses, fees, and other costs. Depending on the final sale figures and your overall expenses, you stand to earn an impressive return on your investment.

Why Choose OfferMarket for Your Fix and Flip Loan in Tennessee?

• Competitive Loan Terms: Up to 90% funding ensures you have the capital required to purchase and renovate properties, whether for a small-scale flip or a larger redevelopment project.

• Flexible Repayment Options: With interest-only payments during the rehab phase and no prepayment penalties, managing cash flow is simpler, keeping your project on track without added stress.

• Quick and Efficient Processing: Our prompt approval process and draw requests processed within 0-2 days ensure your financing is available when you need it most.

• Expert Support Every Step of the Way: From personalized rehab advice to detailed financing guidance, our experienced team is dedicated to your success in Tennessee’s dynamic market.

• Clear, Transparent Fees: With upfront disclosure of all fees, you can plan and budget with confidence.

• Proven Success: With a default rate below 0.5%, our track record speaks for itself—we’re committed to driving your real estate projects to success.

• Flexible Exit Strategies: Whether your goal is to flip or hold and rent, our program offers the flexibility to adapt to shifting market conditions in Tennessee.

Choose OfferMarket for your next fix-and-flip project in Tennessee, and let’s turn your real estate ambitions into a rewarding reality!

Tennessee Fix and Flip Loan: Documentation Requirements

To streamline the approval process, we require specific documentation that helps us assess your project and verify compliance with our loan terms. Below are the essential documents needed for both purchase and refinance transactions in Tennessee.

Purchase Transaction Requirements

Refinance Transaction Requirements

Special Requirements for Loans Over $1M

For loans exceeding $1 million (up to our $2 million cap), additional criteria are applied to ensure project viability and borrower competence:

Glossary of Key Terms

Below are concise definitions for key terms used in our loan agreements:

Get an Instant Fix and Flip Loan Quote in Tennessee

OfferMarket is your trusted partner for financing real estate investments in Tennessee. Our Fix and Flip Loan program combines financial flexibility with competitive rates, empowering you to achieve success with every project. Request your instant quote today and take the first step toward transforming your real estate vision into reality!

Thousands of real estate investors get value from OfferMarket every month. Membership is entirely free and includes the following benefits:

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