Financing Fix and Hold Investment Properties

Fix and Hold Finance Options

How to Fund Your Next Profitable Project

Fix and hold real estate investing continues to be one of the most rewarding paths to long-term wealth, but only if your financing strategy is airtight. In today’s market, where interest rates fluctuate and underwriting standards evolve quickly, having a clear plan and budget is more critical than ever.

Whether you’re restoring a single-family home, converting a mixed-use building, or prepping a multi-tenant property for Airbnb, your financing must align with your goals, timeline, and exit strategy.

Start With Strategy: Budget, Timeline & Property Type

Before you approach lenders, nail down these essentials:

Budget: Include acquisition, renovation, holding costs, and contingencies.
Timeline: Know how long you plan to hold the property—short-term rental, long-term lease, or resale.
Property Type: Financing options vary for single-family, multi-family, mixed-use, and commercial properties. Airbnb conversions may require short-term rental-friendly lenders.

Be Ready to Show Your Plan

Lenders expect transparency and documentation. You’ll need:

A detailed renovation scope
Projected cash flow or rental income
Exit strategy (refinance, sale, or lease)
Entity structure and credit profile (personal and/or business)

Financing Options for Fix & Hold Investors

Whether you’re new to real estate or scaling your portfolio, there are flexible options available:

Hard Money Loan

Best For: Fast closings, credit-challenged investors, or high-potential deals
Terms: 6–18 months; rates ~9%–12%; 0–2 points; no prepayment penalties
Funding: 80%–90% of total cost; investor brings 10%–20%
Bonus: Can be refinanced into long-term loans post-renovation

Conventional Bank Loan

Best For: Experienced investors with strong credit and business history
Terms: 30-year fixed; rates ~3.5%–6%
Requirements: 2+ years of successful projects, formal business entity, solid financials
Drawback: Longer approval timelines (60–90 days)

Asset-Based Lending: A Game-Changer

Some lenders now offer asset-based loans, where the property’s value, not your credit, is the primary qualifier. This is ideal for:

Investors recovering from foreclosure or short sales
Entrepreneurs with limited credit history
Projects with strong equity or income potential

These loans are available for single-family, multi-family, and mixed-use properties and can be a powerful tool for unlocking liquidity or scaling your portfolio.

Final Thoughts

Today, fix and hold financing is more accessible than ever, but only if you know where to look and how to present your deal. Whether you’re building passive income or repositioning a property for long-term growth, the right lender can make all the difference.

We specialize in real estate lending and sourcing strategic financing for real estate investors, new and seasoned.

Let’s find the right solution for your next project.