Loan Programs · Core Focus

Fix & Flip Loans (Rehab & Hard Money Loans)

Short-term purchase and renovation financing for residential investors—from a first flip to a steady pipeline. These hard money and private money loans are arranged through our lender network and matched to your experience and your project, in Minneapolis–St. Paul, across Minnesota, and nationwide.

Submit a Flip

How It Works

How Fix & Flip Loans Work (LTC, ARV, Draws)

A fix-and-flip loan typically finances part of the purchase price and part or all of the renovation budget, with rehab funds released in draws as work is completed and inspected.

Lenders size these loans with a few numbers. Loan-to-cost (LTC) compares the loan with your total project cost—purchase plus rehab. After-repair value (ARV) is what the property should be worth once the work is done, and many lenders cap the loan at a percentage of it. The lower result usually wins. Exact limits vary by lender, your experience, and the property, which is why we don’t quote leverage before we’ve seen the deal.

Most flip loans are short-term and interest-only, so plan for carrying costs—interest, taxes, insurance, utilities—through the renovation and the sale or refinance. Many investors call these loans hard money loans; whatever the name, they are business-purpose loans on non-owner-occupied property, and every one is subject to lender underwriting and approval.

How draws work

Renovation funds are usually held by the lender and released in stages. You (or your contractor) complete a phase of work, request a draw, and the lender or its inspector verifies the work before releasing funds. Plan to pay for some work before each reimbursement, and build your schedule around inspection timing.

What lenders need on a flip

Purchase contract and price
Detailed scope of work and line-item rehab budget
Supportable ARV with recent comparable sales
Flip and rental experience (a simple track record)
Credit and liquidity for down payment, reserves, and carrying costs
Contractor information
Exit strategy and timeline

New Investors

Fix and Flip Loans for First-Time Investors

Yes, first-time flippers can get financing. Some lenders work with investors on their first project, though leverage is often lower and lenders look harder at the budget, the contractor, and your liquidity. Being honest about your experience helps us place the deal with the right lender the first time.

Ways to strengthen a first flip:

Choose a manageable scope—cosmetic work over structural surprises
Use a licensed, experienced contractor with a written bid
Keep a real contingency in the budget and documented reserves
Support your ARV with close, recent, truly comparable sales
Partner with an experienced investor where it makes sense

BRRRR

BRRRR: From Rehab Loan to DSCR Refinance

BRRRR stands for buy, rehab, rent, refinance, repeat. You use a short-term rehab loan to buy and renovate, lease the property, then refinance into a long-term DSCR rental loan that qualifies on the rent.

The refinance is where BRRRR plans succeed or stall. DSCR lenders set seasoning requirements, decide whether to use the original cost or the new appraised value, and qualify the property on its lease or market rent. We plan both loans together—the rehab financing and the DSCR exit—so the first loan sets up the second.

We pressure-test the ARV and budget before your deal goes out. Optimistic comps and thin contingencies are the most common reasons a flip or BRRRR loan gets resized late. We’d rather find that now.

Minnesota

Fix & Flip Financing in Minneapolis–St. Paul

Cornerstone Capital is based in Minneapolis, and founder Rebecca spent twenty years as a real estate agent in the Twin Cities. That background helps on local flips: understanding neighborhoods, how comparable sales really line up, and what buyers expect at resale.

Twin Cities flips come with local considerations worth planning for. Much of the housing stock in Minneapolis, St. Paul, and the inner-ring suburbs is older, so budgets should account for what’s behind the walls. Minnesota winters can affect exterior work and draw timing. And city permitting, inspections, and point-of-sale requirements vary from one municipality to the next. We arrange fix and flip loans in Minnesota and nationwide through lenders whose programs fit the project.

Typical flip scenarios

Single-family and 2–4 unit renovations
Light cosmetic to heavier rehab
Purchase-plus-rehab financing
Rehab-to-rental (BRRRR) projects
Repeat investors building a pipeline

FAQ

Fix & Flip Loan Questions

Can a first-time flipper get a fix-and-flip loan?

Yes, some lenders work with first-time investors, though leverage is often lower and lenders look harder at the budget, the contractor, and your liquidity. Being upfront about your experience helps us place the deal correctly.

Are fix and flip loans the same as hard money loans?

The terms are often used interchangeably. “Hard money” generally refers to short-term, asset-based loans from private lenders, and most fix-and-flip loans fit that description. Cornerstone Capital is a broker: we arrange these loans through our lender network rather than lending ourselves.

How do rehab draws work?

Renovation funds are usually held by the lender and released in stages as work is completed, often after an inspection. Plan for the need to fund some work before each draw is reimbursed.

Can I refinance into a rental loan after the rehab?

Often, yes. Many investors exit a flip loan by refinancing into a DSCR loan once the property is renovated and rented. Seasoning and valuation requirements vary by lender, so it’s worth planning the exit at the start.

Do you arrange fix and flip loans in Minnesota?

Yes. We’re based in Minneapolis and arrange fix and flip loans for investors in Minneapolis–St. Paul, across Minnesota, and nationwide, subject to each lender’s footprint and applicable requirements.

Can I use a fix and flip loan on a home I’ll live in?

No. Fix and flip loans are business-purpose loans for investment property only. We do not arrange owner-occupied or consumer loans.

Are there upfront fees?

Not from us on this brokered loan. Cornerstone Capital charges no upfront broker fees and is paid only at closing. Transactional funding has separate fees disclosed in writing. Lender and third-party costs such as appraisal or inspections are separate.