The reason fix and flippers should have business credit on standby!!

NY · Member since 2026 · 322 posts · 103 votes

every single time that I get a fix and flippers access to 0%apr business funding (the utilization doesn't report to the credit bureaus) they say man you saved my deal, I underestimated how much this would cost. That's why it's keen to have extra capital around so you don't have to dig into your savings to get the deal done now you can scale.

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Ashish AcharyaBusiness Member

CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes

2mo

@Nicholas Floyd, The tax and bookkeeping side matters. Each draw should be traced to the specific property and expense. Depending on the facts, interest may be deductible, limited, or capitalized into the project, while acquisition and renovation costs for a property held primarily for resale may need to be treated as inventory costs rather than immediate deductions. Flip profits are generally ordinary business income, so investors should also reserve for taxes instead of reinvesting every dollar into the next deal.

Having funding available is valuable, but having the accounting and tax plan ready before using it is what protects the profit.

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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
2mo
@Nicholas Floyd, The tax and bookkeeping side matters. Each draw should be traced to the specific property and expense. Depending on the facts, interest may be deductible, limited, or capitalized into the project, while acquisition and renovation costs for a property held primarily for resale may need to be treated as inventory costs rather than immediate deductions. Flip profits are generally ordinary business income, so investors should also reserve for taxes instead of reinvesting every dollar into the next deal.

Having funding available is valuable, but having the accounting and tax plan ready before using it is what protects the profit.

Happy to connect!
[email protected]941-914-7779
INVESTOR FRIENDLY CPA®4.9242 Reviews
Website View Page
TaxMD® | Tax Planning Software
Website View Page
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James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 891 posts · 623 votes
2mo
Agree on having capital lined up before you need it, that part's just true. The reserve is what keeps one surprise from stalling a whole project.

Where I'd add a caution: 0% APR business cards are a real tool but a dangerous default. They work when it's a genuine short-term gap you can clear before the promo ends. They wreck people who use them to stretch into a deal they couldn't actually afford, because the 0% becomes 20%+ the day it expires, and flips always run longer than planned. If the rehab drags past the promo window, that cheap money gets expensive fast.

So yes to standby capital, just be honest about which problem it's solving. Bridging a real gap on a deal that already pencils, great. Funding a deal that only works because the money looks free right now, that's how the tool turns on you. Underwrite it as if the rate resets mid-project, because sometimes it does.
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Aaron ZimmermanBusiness Member
Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
2mo
Makes complete sense to me. At points during a project, the flipper is likely going to need to front money so having access is crucial
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Nicholas FloydBusiness Member
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NY · Member since 2026 · 322 posts · 103 votes
2mo
Yea that’s why I have my clients apply for more 0% cards if they go over the 0% period and liquidate it and pay the other off so the 0%apr period starts ovet
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