A fix and flip is the classic short-term play: buy a distressed property below market value, renovate it, and sell it at the after-repair value. Profit comes from the gap between your total cost and the sale price.
Where bridge loans fit
Flips depend on speed. A bridge loan lets you close fast, fund up to 100% of the rehab through draws, and repay the loan when the property sells, usually with no prepayment penalty.
Know your numbers
- Purchase + rehab + loan costs + selling costs should leave a healthy profit at a conservative ARV.
- Build a contingency into your scope of work for surprises behind the walls.
- Plan your timeline around the 6–24 months loan term.
Check your deal in the loan calculator before you make an offer.