How Do You Get Funding for a Fix and Flip Project?

How Do You Get Funding For a Flip?

For many people who either want to get in the fix and flip business or want to expand their fix and flip business, funding is the number one obstacle. There are some primary ways that people get funding for a fix and flip project. Let’s look at these, as well as how a capital provider such as Gorilla Capital compares.

Hard Money/Private Money Lenders

Both of these options are usually companies or individuals and are not institutions (not a bank). They secure the loan by either a note, deed of trust, or real property. Recently online lending companies have sprouted up to meet the demand for real estate investing. These are direct lenders that make credit decisions based on applications. Interest rates for these loans may be high, from 7 to 12%. There is also likely to be an origination fee.

Most hard money lenders only lend up to 80% of the ARV (after remodel value). Some of the fees include processing fees, application fees, legal fees, appraisal fees, and inspection draw fees in addition to the interest rate and points.

Friends and Family Loans

Many fix and flippers get loans from family members or friends. These lenders loan an investor the money they need to complete their project with the expectation that it is paid back when the project is completed. This can be tricky if you are taking loans from people you have a familial or personal relationships with, in case things don’t go as planned. Personal lenders may be more interested in the value of the property you are trying to flip than your experience as a flipper, so this may be a good option for the flipper just getting started.

Bank Loans

Banks may not be interested in loaning money to fix and flippers who are just getting started. However, if you have demonstrated success, a bank may be approachable. You will need an excellent credit score and no financial issues such as bankruptcy, foreclosure or tax liens. A line of credit from a bank may be a good option because frequently the borrower will not have to pay back any money that was unused.

All of these lenders will check whether the applicant makes a good candidate for a fix and flip loan. A good candidate will have successfully completed one or more fix and flip projects and have a good credit score. There will be a maximum loan size that the lender will consider based on available assets. There is also likely to be a minimum loan size, so depending on your need, this could be a consideration.


Crowdfunding for projects like this works in similar ways to that of the other project funding site, Kickstarter. They are online investment platforms that specialize in real estate investments. Crowdfunding a flip in this manner takes place completely through the website. The platform helps investors, borrowers and sponsors find each other. Your project must meet their criteria and you must wait for the funding goal to be met.

Crowdfunding sites such as RealtyShares, Patch of Land and RealtyMogul offer similar services. If you go this route, investigate the company thoroughly because some companies operate with high interest rates, hidden fees, and little financial oversight.

Capital Providers such as Gorilla Capital

If you receive funding from Gorilla Capital, the benefit to you is that you are not only receiving the funds. With any of the above options, you receive the money but after that you are on your own. At Gorilla Capital, our funding comes with a lot of support! Gorilla can fund prior to auction purchase or within hours if the funds are needed for other purchases. We don’t fall through in the final hour like some lenders do.

Our office support works to pay your invoices and handle your tax issues. We charge no origination fees or fees for document preparation. In fact, there are no hidden fees at all! Our experienced team can review your remodel plans to give you advice on whether it is realistic. We have an in-house legal team who fully understands the ins and outs of fixing and flipping. This is just the beginning of our services. Of course, our services funding program may not be a perfect fit for the right fit for every investor. To find out more about how to get funding for a fix and flip project, please get in touch today!