Asset based lending for fix and flip

[David Sotomayor]

Has anyone heard of a lender that does true asset-based lending for fix-and-flip deals, where they lend strictly based on ARV (After-Repair Value) instead of the purchase price? I was told there are lenders that fund up to 70% of ARV, which would cover 100% of the purchase and leave some room for rehab, with no credit check, no income verification, and no additional collateral required—just the deal itself. I’m a contractor in Sarasota, FL, and while I’m a first-time investor, I’ve worked directly with flippers, running numbers, structuring deals, and managing rehabs. Rehab costs aren’t a concern since I have a full crew and can minimize expenses. I just need the right lender that structures financing this way. If anyone knows about this type of loan structure or can point me in the right direction, I’d really appreciate it.

[Clayton Silva]

I've seen and done many different loans, I would be shocked if a lender did all of that. Each variable you throw into a loan changes the risk calculation. The more aggressive, the worse the product and interest rate usually get, so there are natural "left and right limits" at least to most bank/hard money/fund lenders. Lending solely based on ARV (risk factor), no credit check (risk factor), no income check (risk factor), no additional collateral required (risk factor). Finding a lender that threads that small of a needle and matches all those criteria is likely nonexistent. You might find lenders that do any 1 or 2 of those things, but all 4 is extremely unlikely and IF you DID find them, they are going to charge you 3 points and 20% interest to compensate for those risk factors and make all the profits on your own deal.

That being said, I do work banks that will finance 100% of the purchase and rehab based on ARV without looking at income BUT they do require credit check AND they require pretty significant cash (collateral) reserves. So 2/4 of your criteria.