Fix and Flip Secrets: What Lenders Look For
The exact metrics that separate approved fix and flip deals from rejected ones. Sean Bailey reveals what underwriters evaluate first.
When underwriting a fix and flip deal, lenders focus on one main metric: After Repair Value (ARV) — what the property will be worth after renovation.
The 5 Things Lenders Evaluate
- ARV Accuracy: Comparable sales must support your estimated after-repair value
- Rehab Budget: Detailed line-item scope, not vague estimates
- Your Track Record: Previous flips completed successfully
- Market Conditions: Is the neighborhood appreciating or declining?
- Your Equity: 20-25% down payment shows skin in the game
Why Deals Get Rejected
Overestimated ARV, vague rehab scope, overpaying for the property, declining neighborhood trends, or unlicensed contractors — any of these will kill a deal.
Need Fix and Flip Financing?
Sean specializes in fix and flip loans and knows exactly what lenders want to see.
Email Sean
Sean Bailey
Licensed Mortgage Broker · Founder, The Lending Lab
Sean has funded $100M+ in fix and flip loans and knows what separates approved deals from rejected ones.
Sean@thelendinglab.com · (678) 231-2462 · www.thelendinglab.com