Flip Funding Review 2023

Whether you’re just dipping your toes into flipping houses or you’re a seasoned real estate investor, Flip Funding has hard money loans and other real estate loans for you. But should you go to this private lender for investment capital? Or fund your potential property somewhere else?

In most cases, stick with Flip Funding. It’s our favorite hard-money lender, thanks to its wide variety of loan options, competitive interest rates, and fast closing times.

Sure, we’re a little concerned by the lack of customer reviews, and we wish Flip Funding operated in all states. But as you’ll see in this Flip Funding review, Flip Funding is a solid lender for real estate investing needs.

Flip Funding focuses entirely on commercial real estate loans (instead of general working capital loans). These aren’t the commercial mortgages you’d find from a traditional lender (like a bank), though.

Unlike banks that offer one or two real estate loans for owner-occupied real estate, Flip Funding offers several loan options for real estate investors―from construction loans for new projects to fix-and-flip loans for rehab projects to rental loans for long-term investments.

So let’s break down Flip Funding’s various hard-money loan options.

For investors interested in flipping houses or other property, Flip Funding has fix-and-flip loans. As the name suggests, you use these to buy, fix up, and then flip a property by either selling or refinancing. You can get up to 100% LTV (loan-to-value) and 75% ARV (after-repair value) on these flip loans.

You can use Flip Funding’s bridge loans are short-term loans designed for buying or refinancing real estate investments. Like any bridge loan, you’ll want to have a plan to either refinance with a conventional mortgage or pay off your loan quickly. Flip Funding offers up to 80% LTV on its bridge loans.

Both Flip Funding flip loans and bridge loans can close within 10 days―meaning you can move quickly to snap up your next investment property.

Builders can also get new construction loans to pay for property and construction expenses. Flip Funding offers up to 90% funding for lot costs and up to 100% funding of construction costs.

Flip Funding construction loans take a little longer to close―two weeks, generally―but they’re still short-term loans designed for a quick turnaround. Once you complete construction, you’ll want to refinance with a conventional real estate loan. 

Flip Funding also has loans for specific types of real estate, like its multi-family/mixed-use loans. You can use these loans to buy or refinance properties with anywhere from 5 to 300 units. Flip Funding offers up to 80% LTV on these.

Then you have rental loans. While Flip Funding has mostly short-term loans designed for quick exits, its rental loans offer terms from 5 to 30 years―perfect for holding onto long-term real estate investments. You can get very competitive interest rates on these rental loans, but you’ll need a DSCR ratio of at least 1.10 to qualify. 

Finally, Flip Funding offers commercial loans for all kinds of commercial real estate. In fact, Flip Funding says you can use these for pretty much anything except residential property you live in. Flip Funding offers up to 75% LTV on its commercial loans.

Now that we’ve shown you Flip Funding’s different loan options, let’s talk about some of the things we like most about this private lender.

For starters, we have to point out Flip Funding’s interest rates. Its rates on commercial loans and rental loans can compete with commercial real estate loan rates from even traditional lenders. And while the interest rates on its short-term hard-money loan options skew a bit higher, they’re still very competitive when compared to other hard-money lenders.

Another way Flip Funding can save you money? It has no prepayment penalties. That’s great news, since hard-money loans like the ones Flip Funding offers are designed for short-term investment opportunities (like flipping houses). You generally want to refinance quickly and pay off your hard-money loan―and with Flip Funding, you won’t pay extra to do so.

We also like Flip Funding’s fast closing times. According to its website, Flip Funding closes on most loans in two weeks’ time or less. In some cases, you can close in as few as seven days.  That way, you’ll never miss out on a great investment opportunity because of a slow closing.

We’ve found plenty to like about Flip Funding. But how does it compare to other financing options out there?

In the table below, you can see how Flip Funding stacks up against some other popular hard-money lenders.

You can see those competitive interest rates we talked about. Flip Funding has lower starting interest rates than other hard-money lenders and private lenders. Even its more expensive loan options (like flip loans and bridge loans) start at lower rates than Residential Capital Partners, for example.

Flip Funding also offers larger loan amounts than most other lenders, making it great for all kinds of investment opportunities. That said, Flip Funding may not be the best lender for all real estate investing―for more expensive investments, you may want a lender like CoreVest that has even larger loan amounts.

On the whole, though, we like Flip Funding enough to call it our favorite hard-money lender.

Our final concern comes down to Flip Funding’s lending area. While Flip Funding does offer loans in most states, it doesn’t serve investors in Arizona, Nevada, North Dakota, or South Dakota.

Again, we wouldn’t say that’s a huge issue. But it is a bummer, and we wish investors in Arizona, Nevada, and the Dakotas could take advantage of Flip Funding’s real estate investing financing.

Flip Funding has loans for all kinds of real estate investment projects―from short-term fix-and-flip projects to long-term rental holdings.

All its loans come with competitive interest rates and fast closing times, making Flip Funding one of our favorite real estate lenders.

That said, we do want to caution you that Flip Funding doesn’t have many borrower reviews. Plus, Flip Funding doesn’t operate in all 50 states, and it requires down payments on most loans.

If you’re fine with those details, though, Flip Funding could be a great lender for your next investment project.

Make sure you can afford your Flip Funding loan by running the numbers in our commercial loan calculator.

The 70% rule says that, when flipping houses, you should keep your purchase budget to 70% of a house’s after-repair value―minus any renovation costs.

So if, for example, you think a property will be worth $200,000 after $30,000 in renovations, you shouldn’t pay more than $119,000 for the property―70% of the post-rehab value, minus renovation costs. 

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