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Fix & Flip FAQ
New Construction FAQ
As-is Bridge FAQ
DSCR Rental FAQ
Fix and Flip FAQ
What Is a Fix and Flip Loan and How Does It Work?
A fix and flip loan is a short-term real estate investment loan designed to help investors purchase, renovate, and sell properties for a profit. Unlike traditional mortgages, these loans are asset based and provide fast funding, allowing investors to cover the purchase price, renovation costs, and carrying expenses without long approval processes.
Most private lenders focus on the property’s value and the investor’s experience, rather than just credit scores. Fix and flip loans are commonly used by investors who follow the fix and flip model or the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) to build their rental portfolios.
At Turning Point Lending, we provide fast, flexible fix and flip financing designed to help investors scale their businesses efficiently. Our private money loans ensure you have the capital and speed needed to acquire, renovate, and sell properties without unnecessary delays.
What Are the Requirements for a Fix and Flip Loan?
The requirements for a fix and flip loan vary by lender, but private lenders typically focus on the property’s value, the investor’s experience, and deal profitability rather than just credit scores. Here are the most common criteria:
- Property Type – The loan must be used for non-owner-occupied residential properties intended for renovation and resale.
- Down Payment & Loan-to-Value (LTV) – Most lenders finance up to 90% of the purchase price and 100% of rehab costs, depending on the deal.
- Credit Score – While traditional lenders have strict credit score requirements, private lenders prioritize the deal’s profitability. A credit score of 650+ is typically preferred, but exceptions may be made.
- Experience Level – Having previous fix and flip experience is helpful but not always required. First-time investors can qualify with a strong deal and solid financials.
- Exit Strategy – Lenders want to see a clear plan for selling or refinancing the property within the loan term (usually 6 to 12 months).
- Reserves & Liquidity – Most lenders require cash reserves to cover loan payments, closing costs, and unexpected rehab expenses.
Q: What Are the Costs of a Fix and Flip Loan?
The cost of a fix and flip loan depends on several factors, including the loan amount, interest rate, loan term, and lender fees. Unlike traditional mortgages, fix and flip loans are short term, asset-based loans designed for speed and flexibility. Here’s a breakdown of typical costs:
- Interest Rates – Usually range from 10% to 13%, depending on the loan structure and borrower experience.
- Points (Origination Fees) – Typically 1 to 3 points (1% to 3% of the loan amount).
- Loan Term – Most fix and flip loans are 6 to 12 months, keeping long term interest costs lower.
- Down Payment & Loan-to-Value (LTV) – Lenders often finance up to 90% of the purchase price and 100% of rehab costs.
- Other Fees – May include processing fees, appraisal fees, and closing costs.
Turning Point Lending’s fix and flip loans keep costs competitive while ensuring you have the capital and flexibility needed to maximize your profit potential. Our fast approvals, streamlined funding process, and investor friendly terms help you scale your real estate business with confidence.
What Are the Costs of a Fix and Flip Loan?
The cost of a fix and flip loan depends on several factors, including the loan amount, interest rate, loan term, and lender fees. Unlike traditional mortgages, fix and flip loans are short-term, asset-based loans designed for speed and flexibility. Here’s a breakdown of typical costs:
- Interest Rates – Usually range from 10% to 13%, depending on the loan structure and borrower experience.
- Points (Origination Fees) – Typically 1 to 3 points (1% to 3% of the loan amount).
- Loan Term – Most fix and flip loans are 6 to 12 months, reducing long-term interest costs.
- Down Payment – Varies based on LTV (Loan-to-Value), but lenders often fund up to 90% of the purchase price and 100% of rehab costs.
- Other Fees – May include processing fees, appraisal fees, and closing costs.
At Turning Point Lending, we structure our fix and flip loans to keep costs low while maximizing your profit potential. Our competitive rates, fast approvals, and flexible terms ensure that your financing supports—not limits—your investment strategy.
Do I Need a Fix and Flip Loan If I Can Self-Fund My Project?
Even if you have the cash to self-fund your project, using a fix and flip loan can be a strategic advantage. The most successful real estate investors leverage financing to maximize their capital, scale faster, and reduce risk. Here’s why:
- Preserve Capital for More Deals – Instead of tying up all your cash in one project, financing allows you to spread your capital across multiple investments, increasing your earning potential.
- Maintain Strong Cash Flow – Unexpected rehab costs or market shifts can impact your budget. A loan ensures you have the financial flexibility to handle any situation.
- Small Cost, Big Returns – When used efficiently, a fix and flip loan is a small soft cost compared to the overall profitability of a well-managed flip.
At Turning Point Lending, we structure our loans to give you the speed, flexibility, and leverage needed to grow your real estate business efficiently.
How Does the Draw Process Work for a Fix and Flip Loan?
The draw process for a fix and flip loan ensures you receive funds in stages as your renovation progresses, rather than in a lump sum. This helps manage risk, control costs, and keep your project moving efficiently.
At Turning Point Lending, we’ve streamlined the draw process to make it fast and hassle-free:
- Request a Draw – As work is completed, you can submit a draw request to receive funds for the next phase of the project.
- Inspection & Approval – A quick property inspection confirms completed work, ensuring funds are released accordingly.
- Fast Disbursement – Once approved, draws are typically funded within 2 to 4 business days, keeping your project on track.
Our efficient draw system makes it easier to access capital when you need it, so you can focus on renovations and profitability without unnecessary delays.
What Are the Common Challenges in Fix and Flip Investing and How Do We Help?
Fix and flip investing can be very profitable, but not without challenges that can impact timelines, budgets, and profitability. We understand these obstacles and provide solutions to help investors navigate them successfully.
- Funding Delays – Traditional lenders can take weeks or months to approve financing, causing missed opportunities. Our fast approvals (24 to 48 hours) and closings (as little as 7 days) ensure you secure deals quickly.
- Rehab Cost Overruns – Unexpected repair costs can eat into profits. Our flexible loan structures help you stay financially prepared throughout your project.
- Market Fluctuations – A shifting market can affect sale prices and timelines. We offer short-term, asset-based loans that allow you to pivot quickly as needed.
- Exit Strategy Challenges – Whether selling or refinancing, knowing where you are going is crucial. Our fix and flip loans give you the financial flexibility to sell at the right time or transition into a rental strategy.
At Turning Point Lending, we go beyond just providing loans. We act as a trusted financial partner, helping you overcome obstacles, scale your business, and maximize returns.
Why Choose Turning Point Lending for Your Fix and Flip Loans?
At Turning Point Lending, we do more than just provide fix and flip loans. We partner with real estate investors to create tailored financing solutions that fit their unique needs. Our fast approvals, competitive rates, and flexible terms give you the capital and confidence to purchase, renovate, and sell properties for profit.
Unlike traditional lenders, we take a relationship-driven approach, offering the support and expertise needed to help you scale your investment business. With our streamlined loan process, reliable funding, and investor-friendly terms, you can focus on executing your strategy and maximizing returns.
New Construction Ground Up FAQ
What Are New Construction Loans and How Do They Work?
A new construction loan is a short-term financing solution designed for ground up residential projects, providing builders and developers with the capital needed to cover land acquisition, material costs, labor, and construction expenses. Unlike traditional mortgages, these loans are disbursed through a draw process, ensuring funds are available at key stages of construction rather than in a lump sum.
Most private lenders offer flexible loan structures based on project viability, borrower experience, and market conditions, rather than relying solely on credit scores. While some lenders finance a wide range of developments, others focus on specific project types.
At Turning Point Lending, we specialize in vertical construction financing for shovel ready, fully entitled residential projects, including single family homes and small to medium sized developments. Our loans offer fast approvals, flexible loan terms, and a streamlined draw process so you can keep your project on schedule and maximize profitability.
What Are the Requirements for a New Construction Loan?
The requirements for a new construction loan vary by lender, but private lenders typically focus on the project’s viability, borrower experience, and financial structure rather than just credit scores. Here are the most common criteria:
- Property Type – Most private lenders require the project to be a shovel ready, fully entitled residential development, such as a single-family home or a small to medium sized residential project.
- Down Payment & Loan-to-Cost (LTC) – Many lenders finance up to 85% of total project costs, including land acquisition, materials, and construction expenses.
- Credit Score – While banks impose strict credit requirements, private lenders typically prioritize the project’s profitability over the borrower’s credit score. A 650+ score is often preferred, but exceptions may be made.
- Experience Level – Having prior new construction experience is beneficial, but first-time builders may still qualify with strong financials and a well-structured project plan.
- Exit Strategy – Borrowers should have a clear plan to sell or refinance the property upon completion.
- Reserves & Liquidity – Many lenders require cash reserves to cover loan payments, closing costs, and potential project overruns.
What Are the Costs of a New Construction Loan?
The cost of a new construction loan depends on several factors, including the loan amount, interest rate, loan term, and lender fees. Unlike traditional mortgages, new construction loans are short-term, asset-based loans designed to provide the capital you need to complete your project efficiently. Here’s a breakdown of typical costs:
- Interest Rates – Usually range from 10% to 13%, depending on the loan structure and borrower experience.
- Points (Origination Fees) – Typically 1 to 3 points (1% to 3% of the loan amount).
- Loan Term – Most new construction loans are 6 to 18 months, giving builders time to complete the project without excessive long-term interest costs.
- Down Payment & Loan-to-Cost (LTC) – Lenders typically finance up to 85% of total project costs, covering land acquisition, materials, and labor.
- Other Fees – May include processing fees, appraisal fees, and closing costs.
We structure our new construction loans to keep costs competitive while ensuring you have the capital and flexibility needed to complete your project successfully. Our fast approvals, streamlined draw process, and investor-friendly terms help you focus on building and not worrying about financing.
How Fast Can I Get Approved and Funded for a New Construction Loan?
Speed is essential when it comes to new construction financing, and delays in funding can slow down your project and increase costs. While traditional banks may take months to approve and fund a construction loan, private lenders offer a much faster process.
At Turning Point Lending, we prioritize speed and efficiency to keep your project on track:
- Preliminary Approvals – Borrowers can receive pre-approval within 24 to 48 hours after submitting a loan application.
- Loan Closings – Once approved, we work quickly to close loans in as little as 14 days, depending on project complexity.
- Construction Draws – Borrowers can request funds as needed throughout the project, with draws typically funded within 2 to 4 business days after inspection approval.
Our streamlined loan process, quick decision-making, and efficient draw process ensure you have capital when you need it, so you can keep building without delays.
Do You Offer Loans for Spec Homes or Pre-Sold Homes?
Yes, at Turning Point Lending, we offer new construction financing for both spec homes and pre-sold homes. Whether you are building on speculation or already have a buyer under contract, we provide fast, flexible loans to help you complete your project with confidence.
- Spec Home Loans – Designed for builders who construct homes without a committed buyer, allowing you to develop and sell the property once completed.
- Pre-Sold Home Loans – Ideal for builders who already have a signed purchase contract with a buyer, providing the necessary funding to complete construction.
Both loan options feature competitive terms, quick approvals, and an efficient draw process, ensuring you receive funds when you need them to keep your project on schedule.
What Are the Common Challenges in New Construction Financing and How Do You Help?
New construction financing comes with unique challenges that can delay projects, increase costs, and create cash flow issues if not managed properly. At Turning Point Lending, we understand these obstacles and offer solutions to help builders and developers stay on track.
- Slow Approvals & Funding Delays – Traditional lenders can take months to approve and fund loans, delaying groundbreaking. Our fast pre-approvals (within 24 to 48 hours) and closings (as little as 14 days) ensure you get funding when you need it.
- Complicated Draw Processes – Many lenders have rigid draw schedules that don’t align with your construction timeline. Our flexible draw process allows you to request funds as needed, with disbursements funded within 2 to 4 business days after inspection approval.
- Rigid Loan Terms – Banks often require excessive down payments or restrictive loan terms. We offer up to 85% loan-to-cost financing with tailored loan structures designed for builders.
- Lack of Industry Expertise – Many lenders don’t understand the fast-moving nature of new construction. As real estate investors ourselves, we structure loans to maximize efficiency and profitability for builders.
Why Choose Turning Point Lending for Your New Construction Loans?
At Turning Point Lending, we understand that new construction projects require speed, flexibility, and reliable funding to stay on schedule and profitable. Unlike traditional banks that have long approval times and rigid requirements, we offer:
- Fast Pre-Approvals & Closings – Get pre-approved within 24 to 48 hours and close in as little as 14 days, so you never miss an opportunity.
- Flexible Loan Structures – We offer financing for shovel ready, fully entitled residential projects, including single family homes and small to medium sized developments.
- Reliable Draw Process – Our efficient construction draw process ensures you receive funds within 2 to 4 business days after inspection approval, keeping your project moving forward.
- Expertise You Can Trust – As real estate investors ourselves, we understand the challenges builders face and work alongside you to structure financing that meets your needs.
With Turning Point Lending, you get more than just a loan. You get a financing partner that helps you scale your business, maximize profitability, and build with confidence.
As-Is Bridge FAQ
What Are As-Is Bridge Loans and How Do They Work?
An As Is Bridge Loan is a short-term financing solution designed for real estate investors who need quick funding for properties that do not require renovations. These loans are ideal for tenant occupied properties, acquisitions, and value-add opportunities where investors plan to hold, refinance, or resell.
Unlike traditional mortgages, As-Is Bridge Loans are asset based, meaning approval is focused on the property’s value and the investor’s exit strategy rather than just credit scores. These loans provide fast approvals and flexible terms, allowing investors to close quickly and execute their investment strategy without delays.
What Are the Requirements for an As Is Bridge Loan?
The requirements for an As Is Bridge Loan vary by lender, but private lenders typically focus on the property’s value, investor experience, and exit strategy rather than just credit scores. Here are the most common criteria:
- Property Type – Must be a non-owner-occupied residential investment property.
- Loan to Value (LTV) – Most lenders finance up to 80% of the property’s value.
- Credit Score – While credit is considered, private lenders prioritize deal profitability over credit score. A 650+ score is typically preferred, but exceptions may be made.
- Exit Strategy – Investors should have a clear plan to sell, refinance, or lease the property within the loan term (typically 6 to 18 months).
- Reserves & Liquidity – Some lenders require cash reserves to cover loan payments and closing costs.
What Are the Costs of an As Is Bridge Loan?
The cost of a fix and flip loan depends on several factors, including the loan amount, interest rate, loan term, and lender fees. Unlike traditional mortgages, fix and flip loans are short-term, asset-based loans designed for speed and flexibility. Here’s a breakdown of typical costs:
- Interest Rates – Usually range from 10% to 13%, depending on the loan structure and borrower experience.
- Points (Origination Fees) – Typically 1 to 3 points (1% to 3% of the loan amount).
- Loan Term – Most fix and flip loans are 6 to 12 months, reducing long-term interest costs.
- Down Payment – Varies based on LTV (Loan-to-Value), but lenders often fund up to 90% of the purchase price and 100% of rehab costs.
- Other Fees – May include processing fees, appraisal fees, and closing costs.
At Turning Point Lending, we structure our fix and flip loans to keep costs low while maximizing your profit potential. Our competitive rates, fast approvals, and flexible terms ensure that your financing supports—not limits—your investment strategy.
How Fast Can I Get Approved and Funded for an As-Is Bridge Loan?
Traditional lenders may take months to approve financing, but private lenders offer a much faster process designed for real estate investors who need quick access to capital. Turning Point Lending prioritizes speed and efficiency to keep your investments moving forward:
- Pre Approvals – Borrowers can receive pre-approval within 24 to 48 hours after submitting a loan application.
- Loan Closings – Once approved, loans can close in as little as 7 to 14 days, depending on deal complexity.
What Types of Properties Are Eligible for an As-Is Bridge Loan?
The short answer: non-owner-occupied investment properties that do not require rehab.
Examples:
- Tenant-Occupied Properties – Financing for properties already generating rental income.
- Stabilizing Investments – Gives investors time to adjust rental rates or occupancy before refinancing.
- Short-Term Holds – Helps bridge the gap between acquisitions and permanent financing.
- Portfolios & Multi-Property Acquisitions – Allows investors to secure multiple properties quickly without long-term debt.
Can I Use an As-Is Bridge Loan for a Tenant-Occupied Property?
Yes! As-Is Bridge Loans are an excellent solution for tenant-occupied properties, whether you are acquiring, refinancing, or stabilizing an asset. These loans allow investors to secure short-term financing without requiring property improvements.
Why Choose Turning Point Lending for Your As-Is Bridge Loan?
We partner with real estate investors to offer fast, flexible, and strategic financing solutions designed to help you close deals with confidence. With Turning Point Lending, you get more than just a loan. You get a financing partner committed to helping you scale your business, maximize your profits, and help you grow with confidence.
DSCR Rental FAQ
What Is a DSCR Rental Loan and How Does It Work?
A DSCR (Debt Service Coverage Ratio) Rental Loan is a long-term financing solution designed for real estate investors who want to acquire or refinance rental properties. Instead of evaluating the borrower’s personal income, lenders assess the property’s ability to generate sufficient rental income to cover debt payments and property expenses—this is known as the Debt Service Coverage Ratio (DSCR).
The DSCR formula is simple. DSCR = Rental Income ÷ (Mortgage Payment + Property Taxes + Insurance + HOA Fees, if applicable). In short, a DSCR of 1.0 means the property breaks even. Above 1.0 means positive cash flow while below means no positive cash flow. In that latter instance, additional reserves, a lower loan amount, or a higher down payment would be necessary to make things work.
What Are the Requirements for a DSCR Rental Loan?
The requirements for a DSCR Rental Loan vary by lender, but private lenders focus on the property’s income potential and debt service coverage ratio (DSCR) rather than personal income. Here are the most common criteria:
- Property Type – Must be a non-owner-occupied residential investment property, including single-family homes, condos, townhomes, or multi-unit properties.
- Debt Service Coverage Ratio (DSCR) – Most lenders require a minimum DSCR of 1.0 to 1.25, meaning the property must generate enough rental income to cover mortgage payments, taxes, insurance, and HOA fees (if applicable).
- Loan-to-Value (LTV) – Lenders typically finance up to 80% of the property’s value for purchases and up to 75% for refinances.
- Credit Score – A minimum credit score of 640 to 680 is preferred, but requirements vary based on LTV and DSCR strength.
- Reserves & Liquidity – Some lenders require cash reserves to cover several months of mortgage payments.
Turning Point Lending’s flexible, investor-friendly DSCR Rental Loans are designed to help you secure long-term financing and grow your rental portfolio with ease.
What Are the Costs of a DSCR Rental Loan?
The cost of a DSCR Rental Loan depends on several factors, including loan amount, interest rate, loan term, and lender fees.
Here’s a breakdown of typical costs:
- Interest Rates – Typically range from 7% to 10%, depending on loan structure, DSCR ratio, LTV, and borrower credit profile.
- Points (Origination Fees) – Usually 1 to 3 points (1% to 3% of the loan amount).
- Loan Term – Most DSCR Rental Loans offer fixed-rate term of 30 years.
- Loan-to-Value (LTV) – Lenders typically finance up to 80% for purchases and up to 75% for refinances.
- Other Fees – May include processing fees, appraisal fees, and closing costs.
How Fast Can I Get Approved and Funded for a DSCR Rental Loan?
Speed is essential when securing a DSCR Rental Loan, especially in competitive real estate markets. While traditional lenders may take more than a month to approve financing, private lenders offer a faster and more efficient process designed specifically for real estate investors.
- Pre-Approvals – Borrowers can receive pre-approval within 24 to 48 hours after submitting a loan application.
- Loan Closings – Once approved, loans can close in as little as 14 to 21 days, depending on deal complexity.
Our streamlined underwriting and investor-focused process allow you to secure long-term financing quickly, so you can focus on scaling your rental portfolio without delays.
Can I Use a DSCR Loan for Short-Term Rentals Like Airbnb?
Yes, DSCR Rental Loans can be used to finance short-term rental properties, including those listed on Airbnb, Vrbo, and other vacation rental platforms.
- Eligible Properties – Single-family homes, condos, townhomes, and multi-unit properties that comply with local short-term rental regulations.
- Rental Income Consideration – Some lenders may use actual short-term rental income based on market performance, while others use long-term rental projections.
- Loan Terms – Typically 30-year fixed-rate, with up to 80% LTV for purchases and 75% LTV for refinances.
At Turning Point Lending, we offer DSCR Rental Loans designed to help investors finance, expand, and scale their short-term rental portfolios with ease.
Can I Refinance an Existing Rental Property with a DSCR Loan?
Yes, DSCR Rental Loans are a great way to refinance existing rental properties, whether you’re looking to lower your interest rate, extend your loan term, or pull cash out for future investments.
There are two options for this scenario, Rate & Term Refinance or a Cash-Out Refinance. A Rate & Term Refinance allows investors to replace their existing loan with a new DSCR loan, often with better terms and a fixed-rate structure. A Cash-Out Refinance means investors can access built-up equity in the form of capital for new acquisitions, property improvements, or portfolio expansion.
What Are the Common Challenges in Fix and Flip Investing and How Do We Help?
Yes, DSCR Rental Loans are a great way to refinance existing rental properties, whether you’re looking to lower your interest rate, extend your loan term, or pull cash out for future investments.
There are two options for this scenario, Rate & Term Refinance or a Cash-Out Refinance. A Rate & Term Refinance allows investors to replace their existing loan with a new DSCR loan, often with better terms and a fixed-rate structure. A Cash-Out Refinance means investors can access built-up equity in the form of capital for new acquisitions, property improvements, or portfolio expansion.
Q: Why Choose Turning Point Lending for Your DSCR Rental Loan?
We provide DSCR Rental Loans designed specifically for real estate investors looking to scale their rental portfolios without personal income verification. Our streamlined process, competitive rates, and flexible loan terms make securing long-term financing simple and efficient.
- Fast Pre Approvals & Closings – Get pre-approved within 24 to 48 hours and close in as little as 14 to 21 days.
- Flexible Loan Structures – Financing options for long-term rentals, short-term vacation rentals, and multi-property portfolios.
- No Personal Income Requirements – Loan approval is based on rental income and property cash flow, not tax returns or W-2s.
- Industry Expertise – As real estate investors ourselves, we understand the challenges of rental property financing and structure loans to help you maximize cash flow and long-term wealth.
Why Choose Turning Point Lending for Your DSCR Rental Loan?
We provide DSCR Rental Loans designed specifically for real estate investors looking to scale their rental portfolios without personal income verification. Our streamlined process, competitive rates, and flexible loan terms make securing long-term financing simple and efficient.
- Fast Pre Approvals & Closings – Get pre-approved within 24 to 48 hours and close in as little as 14 to 21 days.
- Flexible Loan Structures – Financing options for long-term rentals, short-term vacation rentals, and multi-property portfolios.
- No Personal Income Requirements – Loan approval is based on rental income and property cash flow, not tax returns or W-2s.
- Industry Expertise – As real estate investors ourselves, we understand the challenges of rental property financing and structure loans to help you maximize cash flow and long-term wealth.
