Financing Fix and Flips in a High-Rate Market: How Investors Stay Profitable

Jay Sookhakitch
Aug 4
2 min read

When rates go up, a lot of would-be investors freeze. But the truth is: profitable fix and flips still happen every day. You just have to approach the deal a little differently.

At Alvear Lending, we work with investors across the country who are flipping homes—and winning—even in a high-interest environment. Here’s how they do it.

It Starts with the Right Leverage

High rates don’t hurt as much when you’re not borrowing at full value. That’s where private lending shines. With fix and flip loans through Alvear Lending, qualified investors can borrow:

Up to 90% of the purchase price
Up to 100% of rehab costs
With total loan amounts up to 75% of ARV

That means less cash out of pocket and more capital to move quickly on deals. If you’re analyzing a flip with solid margins, the cost of capital is just one line in the budget—not a deal-breaker.

Faster Rehabs, Lower Carry Costs

The longer you hold the property, the more interest you pay. That’s why the best investors in today’s market are laser-focused on tight timelines.

To stay profitable:

Pre-plan your scope of work before closing
Order materials in advance to avoid delays
Line up your contractor and subs early
Push for a 3–6 month turnaround, not 9–12

A quick close from Alvear Lending helps here, too. Our fix and flip loans can close in as little as 7–14 business days, so you can start the clock—and the demo—sooner.

Structure the Loan to Match the Strategy

Every flip is different, which means the loan should be too. You might be targeting:

A light cosmetic flip in a hot market
A heavier rehab in a transitional neighborhood
A flip-to-rent strategy where you’ll refinance later

In each case, we’ll help tailor the loan terms—interest-only payments, short duration, rehab draws—to match your timeline and exit plan.

Pro Tip: Margin Over Rate

We get it—nobody likes paying more interest. But here’s a reality check: a 12% loan on a fast, high-margin flip is still better than a 6% loan on a deal with no spread.

Focus on these metrics: