Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche


How Do Fix-And-Flip Loans Work?

Fix and flip loans can be profitable for both the borrower and the lender. Flipping a house requires access to a fast and reliable loan like a private money loan. Private money lenders help investors close the gap between their capital, the property’s purchase price, and the remodeling costs.

Private money lenders are individuals or organizations with the means to grant you a loan without the necessary qualifications of going through the bank. i Fund Cities offers private money loans to investors by investors with flexible terms, higher leverage, and fast approval. They are not afraid to take the risk to fund your project.

How Can A Fix-And-Flip Loan Be Used?

Fix-and-flip involves buying and remodeling a house to sell it for a higher profit. It can be pretty expensive to handle, as lucrative as this idea sounds.

Newly rendered house for sale
Newly rendered house for sale by Jonathan Hutchins is licensed under CC-BY-SA 2.0

Acquiring a loan from private money lenders helps you meet this cost and generally helps you purchase the property from the owners, cover the costs of repairs and restorations, and demolish an existing property with the intention of reconstruction to place it on the market.

How Do Fix-And-Flip Loans Operate?

Money lenders offering private money financing are preferred because of their hassle-free lending process. Traditional banks might be skeptical about taking on a project with the kind of risk that flipping houses present.

man painting the wall
Photo by Tima Miroshnichenko on

 Once you apply for private money financing, an appraiser will be sent to evaluate the property in question to determine if it’s worth the effort. Private money lenders are less concerned with the borrower’s credit standing than loan collateral and understand that if the property sells, the borrowers will be able to pay off the loan in full.

Defaulting from loan payments will result in the lender acquiring your property to sell it for profit or convert it into rentals. To avoid defaulting from payments, make sure you can account for the total expenses, including the carrying costs, before approaching private money lenders.

Benefits Of Using Private Money Lenders

Traditional banks and creditors have a truckload of rules and regulations to be followed before granting you a loan. The entire process could even take months. This is time you do not have.

a man holding cash while sitting at his work desk

On the other hand, private money loans have fast approval, flexible terms, and no-prepayment penalties, allowing you to control the buyer’s mortgage rate. Every private money financing institution has its interest rates generated from several factors. i Fund Cities offers up to 90% loan on the purchase cost, 10-20% down payment, and 7.99% interest rates.


i Fund Cities is a private money lender offering solutions to fix-and-flippers and real estate investors in Philadelphia since 2008. Contact them today for all your private money financing solutions.