Purchase a HomeRefinance My Home
Real estate flipping is booming in Denver, thanks to a hot housing market and increasing demand for renovated homes. For both new and seasoned investors, a fix and flip home loan can be the key to unlocking profits and building wealth. But how do you finance these short-term projects quickly and efficiently? That’s where Miranda Mortgage steps in—with tailored loan solutions and local expertise to help you take your investment goals from blueprint to reality.
A fix and flip home loan is a short-term financing solution designed specifically for real estate investors who buy undervalued properties, renovate them, and then sell for a profit. Unlike traditional mortgages, these loans focus more on the potential value of the property after repairs (known as ARV, or After Repair Value) rather than the borrower’s credit or income history.
Fix and flip loans are typically structured with shorter repayment terms, often ranging from 6 to 18 months, and are geared toward speed—getting you the capital you need when you find the right property at the right price.
There’s no one-size-fits-all solution when it comes to funding your flip. Here are the most common financing options available to Denver investors.
For first-time investors, borrowing from friends or family can be a low-barrier entry into the market. These informal loans rely on personal trust and usually come with flexible repayment terms.
Investor Tip: Always draw up a written agreement that outlines repayment terms, timelines, and any interest, even if it’s someone you trust completely.
Hard money loans are one of the most popular choices for fix and flip financing. These are asset-based loans provided by private lenders and are secured by the property being purchased.
Best for: First-time flippers who need fast funding or investors working with distressed properties.
If you already own a property with significant equity, a cash-out refinance allows you to tap into that value to finance another flip. This approach involves refinancing your existing mortgage for a higher amount and using the difference as investment capital.
Best for: Experienced investors with successful past flips or homeowners with built-up equity looking to reinvest.
A HELOC functions like a credit card secured against your home’s equity. You can draw from the credit line as needed, making it a flexible financing option for smaller or staged projects.
Best for: Small-scale renovations or as supplemental funding for a larger flip.
Bridge loans are short-term financing solutions used to “bridge the gap” between buying a new property and selling an existing one. They’re particularly useful for investors managing multiple flips simultaneously.
Best for: Investors with a current flip under contract who want to jump on their next opportunity.
Choosing the right financing option depends on your investment strategy, available resources, and risk tolerance. Below is a quick comparison of the key features:
| Financing Type | Approval Speed | Interest Rates | Ideal For | Drawbacks |
|---|---|---|---|---|
| Friends & Family | Fast | Low/Varies | First-time investors | Relationship risks |
| Hard Money Loan | 10–15 days | High | Fast flips, distressed homes | High cost, short terms |
| Cash-Out Refi | Moderate | Moderate | Equity-rich investors | Affects existing mortgage |
| HELOC | Flexible | Low/Moderate | Small projects | Owner-occupied only |
| Bridge Loan | Fast | High | Multi-project investors | Short terms, higher fees |
Miranda Mortgage has deep roots in the Denver real estate community and a strong reputation for simplifying the lending process. Whether you’re flipping your first property or scaling up your investment portfolio, we bring both experience and education to the table.
Here’s what sets us apart:
We take the time to walk through your goals, timeline, and risk level to match you with the ideal loan product.
Jumping into your first fix and flip can feel overwhelming, but a solid strategy can significantly reduce risk and increase returns.
Plan for a realistic budget. Always include a 10–20% buffer for unexpected costs like permit delays or contractor overruns.
Time your renovation wisely. Delays can eat into profits, especially if your loan has a short term or high interest rate.
Work with trusted contractors. Ask for referrals, read reviews, and ensure they’re licensed and insured. A reliable crew can make or break your timeline.
Know your exit strategy. Are you flipping to sell immediately, or renting out the property short-term while waiting for a better market? Your loan terms should match your plan.
Understand your local market. Denver has unique neighborhood-by-neighborhood trends. Study comps, demand, and renovation ROI for each area you invest in.
What credit score do I need for a fix and flip loan?
With hard money lenders, credit isn’t the main concern. They focus more on the property’s value and your flip plan. However, other loans like cash-out refi or HELOC may require moderate to good credit.
How fast can I get funding?
Hard money and bridge loans can fund in under two weeks. HELOCs and traditional loans may take longer due to more extensive underwriting.
Can I use more than one financing method?
Yes. Many investors use a combination—for example, pairing a cash-out refinance with a HELOC or using a bridge loan to cover down payments.
Do I need to own property already to get started?
No. Options like hard money loans are available even to first-time flippers who don’t currently own any real estate.
Fix and flip investing offers a tangible path to building wealth, especially in a growing market like Denver. But without the right financing, even the best renovation ideas can stall. A well-structured fix and flip loan gives you the leverage to act fast, make smart improvements, and maximize your return.
At Miranda Mortgage, we understand the local market and the needs of both beginner and experienced investors. Our goal is to remove the stress from financing so you can focus on what you do best—transforming homes and building your future.
Ready to take the next step in your investment journey?
Call Naiely at 303.520.1786 or email Naiely@BarrettFinancial.com to learn which fix and flip home loan is right for your next project.
