5 Ways Investors Actually Fund a Flip

There's a lot of noise around flip funding, and most of it boils down to two options: hard money, or borrowing from someone you know. Neither story is complete, and one of those options has a habit of falling apart three days before closing.

Here's a rundown of five real, structured ways experienced investors are funding flips right now, and why the two most talked about shortcuts almost always backfire.

Hard money

A hard money lender underwrites the deal itself, the property, the after repair value, and your exit plan, not just your personal credit score. Rates typically run 8 to 15% annually, with experienced borrowers landing closer to 9 to 12%. Origination points run 1 to 4%, commonly 1.5 to 3. Close time is usually 7 to 14 days, sometimes faster. Compare that to 30 to 60 days on a conventional loan and speed becomes a real competitive edge.

Rapid gap funding

This is unsecured term loan stacking. Multiple loans pulled from different lenders in a short window, before each new application shows up on credit and affects the next approval. No lien, no collateral. It sits behind a primary loan and covers the shortfall on down payment, rehab, or closing costs when hard money or DSCR alone doesn't cover the full number. It can move fast, often within a few days, which matters when a deal is already under contract and the clock is running.

0% credit card stacking

Business credit cards with a 0% introductory APR, used for rehab costs, materials, and contractor draws. This works best once utilisation is already under control, because the goal is to qualify for a stronger stack of 4 to 5 cards at once rather than one card at a time.

HELOCs

Borrowing against equity already built into a primary residence or an investment property. Usually the cheapest money on the list because it's secured by real estate. Most come with an interest only draw period, so you're only paying on what you actually use, and the line replenishes once you pay it down. Over time, it functions like your own revolving bank for future deals.

Business lines of credit

Tied to the strength of your operating business rather than the property. Draw for rehab costs, pay interest only on what's drawn, and the line resets once repaid. A solid option once there's consistent monthly revenue coming in.

Why private money and gator lending aren't the shortcut they're marketed as

Private money sounds simple. No underwriting, no paperwork, just a handshake. That simplicity is exactly the problem. A private lender is a person, not a lender, and people change their minds. The pattern that comes up again and again is an investor with a deal under contract, and a private lender who gets cold feet days before closing.

Gator lending is often pitched as the workaround, but real published programs typically require a 680 plus credit score, a first position loan, combined loan capped at 70 to 75% ARV, and cross collateral at 150% minimum. If you qualify for that, you already qualify for hard money, term loan stacking, a HELOC, or a business line of credit, and all four tend to move faster with fewer fees attached.

At the end of the day, none of these five options depend on someone else's mood the week before closing. The right combination comes down to deal size, timeline, and what assets you're already sitting on.