Private Money for Fix-and-Flip Projects

Private money can be an effective tool for acquisition + rehab execution—when the numbers and exit are disciplined.

Why Private Money Is Used in Fix-and-Flip

Flips are timeline-sensitive. Private money often provides faster execution than banks, particularly when the property condition is not bankable.

What Lenders Typically Underwrite

  • As-is value and market liquidity
  • Rehab scope and budget realism
  • Borrower/operator track record
  • Exit: sale strategy, comps, days on market

Where Fix-and-Flip Deals Break Down

  • Optimistic ARV assumptions
  • Underestimated timelines and contingencies
  • Overleverage and thin margin

What Improves Execution

Conservative numbers, clear documentation, and realistic schedules. Good deals are not sold—they are supported.

Quiet conclusion: Private capital rewards operators who treat execution as a discipline.

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