Conventional banks will not easily finance a Fix and Flip loan, for several reasons: 1. Fix and flip loans have a quick turnaround time, and big bank like to provide long term loan where they can get more interest over a long period of time. 2. It is a more involved type of loan, where the lender will have to make regular site visit to keep up with the progress of the construction, and bank do not want to invest that time. 3. They consider a Fix and Flip loan a more risky type of loan, so to compensate they would require a higher down payment, higher credit score and more liquid funds. 4. Finally, bank are not in the business of managing construction site, repairs and renovation, therefore the thence to stay away from these type of loans. Investors Funding That lock of conventional bank involvement leave a gap in offering Fix and Flip loans to investors, and that is where the Hard Money Lender comes in, to help those investors who doesn’t have the conventional bank credentials, Hard Money Lenders are more flexible and can make the real estate transaction must more easier than a bank. Real Estate Funding . Financing Fix and Flip deals . Lines of credit on loans with interest rates under 6.8% . Financing up to 90% of purchase price, 90% renovation . Loans based on 75% after market value