First Fix and Flip

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Peter MckernanBusiness Member
Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
1y

If you do not have experience at all with fix and flip and this is your very first one. I would suggest you partner with someone that has done them before to go through the first couple with you. If you have been working under someone and have a good concert on what it takes, then I would think about getting a least that mentor that you have been working under give you pointers along the way. 

Best loan, HML, and best practice, buy the house at the best price verse the comps.

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  • Drago Stanimirovic
    Real Estate Coach · Miami, FL · Member since 2024 · 1k+ posts · 484 votes
    1y

    Hey Cory, great to hear you're jumping into fix and flipping, smart move when done right. For your first flip, the best process is to keep it simple and focused: find a property priced below market value, estimate rehab costs conservatively, and make sure your ARV (After Repair Value) leaves enough room for profit after all costs, including financing.

    Stick to cosmetic rehabs on your first deal, paint, flooring, kitchen/bath updates, nothing too structural. Time is money in flips, so the faster the turnaround, the better.

    As for loans, a Fix & Flip loan is your best bet. It covers both purchase and rehab costs, is asset-based, and can close fast.

    Happy to support you on your REI journey!

    2Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 681 votes
    1y
    Quote from @Cory Hickman:

    Hey I'm wanting to do fix and flipping. What's the best process or practice as your first one? Best loan types? 


     If you are just getting started and have no industry experience, I would definitely suggest partnering up with somebody and using some of your own To inject into the deal to get a return.  if you are a little bit more ambitious and wanna get going on your own, you would utilize what’s called a fixed and flip/hard money loan in order to finance the purchase price and renovation budget. I recommend talking to an experienced loan broker who can help you shop and compare the right product for the job. Excited to see you are so eager to get going! Best of luck!!

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  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    1y

    If you do not have experience at all with fix and flip and this is your very first one. I would suggest you partner with someone that has done them before to go through the first couple with you. If you have been working under someone and have a good concert on what it takes, then I would think about getting a least that mentor that you have been working under give you pointers along the way. 

    Best loan, HML, and best practice, buy the house at the best price verse the comps.

    The McKernan Group4.957 Reviews
    WebsiteView Page
    2Reply
  • Kang Xu
    Member since 2025 · 7 posts · 2 votes
    1y

    I am also looking for opportunities to enter the home renovation business, but the problem is that I cannot find suitable opportunities in my area.

    0Reply
  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 663 votes
    1y

    REI is an arena you step into. Be careful with the casual, "I think I'll start flipping houses now...", like it's just an option there if you want it. There's lots to know, and theres a technique to this like there is for everything in life and if you do not do it correctly you will lose money. Lots of moving parts. Lots of budgeting. Managing. Researching.

    1Reply
  • Jacob Sherman
    12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
    1y

    for the loan type you'll just want to search for a fix and flip loan but definitely look for one that covers 100% of construction 

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  • Kevin Jimeno
    Lender · FL · Member since 2021 · 3 posts · 1 vote
    1y

    Hey Cory, welcome to the world of fix and flips! Getting started can feel overwhelming, but a strong foundation goes a long way. For your first project, a few things really matter: having a solid team (contractor, agent, title company), knowing your numbers (ARV, rehab budget, holding costs), and securing the right type of financing.

    There are several loan options depending on your goals and experience level. Hard money lenders are often a go-to for first-time flippers—they’re asset-based and move fast, though rates can be higher. Some newer investors also work with private lenders or look into local banks or credit unions that understand investor-friendly deals.

    We’ve built a pretty solid list of lenders who are active in this space and may be a good fit depending on your deal structure. It’s all about finding terms that give you enough margin to cover costs, stay protected during the rehab, and exit profitably.

    If you’re open to it, I’d be happy to point you in the right direction or share some of the resources and lender contacts others have used for similar deals. No strings attached — just trying to help you get off to a strong start!

    Let me know if you want to connect

    1Reply
  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 663 votes
    1y

    First make sure your credit is decent and do you have like 50k+ behind you in capital?

    If you can answer yes to both of those then you want to buy a house using a bridge loan which includes money to purchase and money to fix the house up.  They are interest only loans that last 12 months.  You pay the loan off at the sale or refi table.

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  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    1y

    Hey Cory, for your first flip, I’d suggest analyzing the deal thoroughly, looking at the property's potential, including rent rates, vacancy rates, and comparable sales. Focus on properties that need cosmetic updates rather than major repairs. Hard money loans are great for speed, but keep an eye on the interest rates. Work with reliable contractors and stick to your budget to keep the project on track.

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  • Zachary DealPro Member
    Lender · Member since 2023 · 465 posts · 425 votes
    1y

    Hey Cory! As other's have stated it's best to start with a simple cosmetic rehab for your first flip and work your way to larger rehab budgets.

    As far as lending options, a fix and flip (hard money loan) is your best bet. It's important to find a lender that will due their due diligence on the deal to ensure the numbers check out based on the purchase price, rehab budget and ARV. Typically you will need to bring more money to closing on your first deal and be rewarded with higher leverage options as you gain experience!

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  • Christopher Mendez
    Member since 2025 · 22 posts · 2 votes
    1y
    Quote from @Cory Hickman:

    Hey I'm wanting to do fix and flipping. What's the best process or practice as your first one? Best loan types? 



    Great to see you diving into flipping — the first deal is always the most important!

    Quick summary for the process. 

    Get prequalified for funding. 

    Find a good deal (discounted property)

    Line up your contractor + scope of work

    Fund the deal → fix → sell

    If you’d like, I can help walk you through the funding side. I work with a lender that works with first-time flippers. 







    0Reply
  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    1y

    Hey Cory ! awesome you're diving into flips! Start by lining up a solid contractor, inspector, lender, and agent with investor experience. Hard money loans work best for fast purchase + rehab funds, though rates are higher. If you've got equity, a HELOC or cash-out refi can be cheaper.

    Happy to connect you with some solid Midwest lenders if you’d like — what price range are you aiming for?

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  • Joseph TadresPro Member
    Real Estate Agent · Columbus, OH · Member since 2025 · 184 posts · 179 votes
    1y

    For your first flip, keep it simple, focus on cosmetic updates in a solid neighborhood where homes sell quickly. Avoid major structural work.

    I’d suggest using hard money or a private lender for speed and flexibility. Just make sure your numbers work.

    Biggest tip: line up your contractor, lender, and agent before you buy. It'll make the process way smoother.

    1Reply
  • Greg CadwalladerPro Member
    Lender · United States · Member since 2025 · 12 posts · 4 votes
    1y

    Hey, Cory

    I would spend some time getting to know the local real estate investment community. There are usually good free meetups in most communities where you can start putting together a trustworthy team of agents, lenders, contractors....

    Keep the first one simple and if it sounds to good to be true it probably is. Not every deal needs to be yours and it is ok to pass on one.  Pay attention to days on market as holding costs can eat you up if you are in a slow moving market. 


    Best of Luck!

    0Reply
  • Mike Dail
    Lender · Green Bay, WI · Member since 2025 · 26 posts · 5 votes
    1y

    Hey Cory! To offer a very quick, and concise answer, hard money is a popular choice for flips because it's fast and focuses on the deal's potential, not your personal income. 

    0Reply
  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 663 votes
    1y

    There really only is one loan for a flipper.  It's a short term bridge loan with rehab.  12 months term, interest only, no PPP.  Pretty standard structure throughout the industry.

    Even before financing, have a strategy.  Do some research.  Take inventory of your credit and capital.  Do not rush into anything.  Start meeting the various facets of the rehab process: DEmo, Mechanicals, Roof, Floors, Interior finish, Painting.  

    Your key metric will be Project Cost/ARV. Most Books/Podcasts say 75% is threshold, from my experience 75% does not guarantee you a win. I've seen 75% project cost projects lose at the end. When markets and rates move against you and then your rehab is longer and not quite to quality then the 25% profit margin leads to a -25% loss real fast.

    I have personally redefined what a good project is. I need to be at a 60% project cost. So if ARV is 200k, I can't be more than 120k on purchase + rehab. Those kind of margins can only be found in secondary cash markets.

    I gave up on the MLS/Agent/Wholesaler sourcing. It didn't work for me or my clients. I'm sure everyone has their own experiences. But it's nearly impossible to get the project cost where you need it to me shopping at those outlets.

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  • Brody Nelson
    Rental Property Investor · Cincinnati, OH · Member since 2019 · 13 posts · 6 votes
    1y

    Hey Cory, just seeing this post. Wondering how your search has been going? Secured any deals?  Would enjoy connecting as I am starting to flip a little as well. 

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3w

    Hey Cory,

    There are many fix-and-flip programs for first-time investors. Happy to connect

    [email protected]818-269-7983
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  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 971 votes
    3w
    Quote from @Cory Hickman:

    Hey I'm wanting to do fix and flipping. What's the best process or practice as your first one? Best loan types? 

    For your first flip, keep it simple and don't chase a huge project. Run the numbers using realistic ARV, rehab costs, holding costs, and selling expenses, then leave room for surprises. Talk to a few hard money or private lenders before making offers so you know your budget upfront. I'd also start with a manageable property and a contractor you trust. The money is made when you buy right, not just when you sell.

    [email protected]614-418-6081
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