How to Use a Hard Money Loan for Your First Fix and Flip

Loan Application

Jumping into your first fix and flip project can feel like diving into the deep end. But with the right financing—like a hard money loan from Alvear Lending—you'll have a solid float to keep you moving.

Here’s how it works, why it helps, and how to make your first flip a profitable one.

What is a Hard Money Loan?

A hard money loan is short-term, asset-based financing typically used for real estate investment. Instead of focusing on your credit score, lenders look at the value of the property itself and your plan to improve and sell it.

It’s fast, flexible, and ideal for short-term projects like flips.

Why Use Hard Money for a Flip?

Because speed and flexibility matter.

• Quick closings: You can close in as little as 5-7 business days.

• Minimal paperwork: No tax returns or income docs required.

• Loan based on ARV: Get up to 85% of the purchase price and 100% of rehab costs, capped at 70% of ARV (after-repair value).

• Interest-only payments: Lower monthly costs while you renovate.

If you find a deal with potential, you don’t want to lose it because a traditional bank drags its feet. Hard money keeps your momentum going.

The Fix and Flip Process with Alvear Lending

Let’s break it down:

1. Find a property

   • Look for undervalued homes with cosmetic or structural issues.

2. Get pre-approved

   • Submit a quick application with Alvear Lending. No income docs needed.

3. Fund the purchase and rehab

   • Alvear will fund up to 85% of the purchase price and 100% of the rehab budget, up to 70% of the ARV.

   • Loan amounts range from $100K to $3M.

4. Do the renovations

   • Draws are released as work is completed.

5. Sell the property

   • Repay the loan and (hopefully) pocket a solid profit.

Tips for First-Time Flippers

• Stick to cosmetic fixes: Kitchens, bathrooms, paint, and flooring give the best ROI.

• Know your comps: Understand what similar homes are selling for post-renovation.

• Build a reliable team: Contractors can make or break your timeline.

• Plan for overruns: Budget at least 10% extra for surprises.

Final Thoughts

A hard money loan can be your best friend when starting out in the fix and flip world. It gives you speed, leverage, and a simple approval process—so you can focus on what matters: making the deal work.

Alvear Lending makes it easy to get started with a streamlined, investor-friendly approach that’s built for first-time and seasoned flippers alike.

Ready to flip your first property? Apply now with Alvear Lending and make your move.

Apply Now

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