Fix & Flip Loans — Everything You Need to Know
Fix and flip loans — also called hard money rehab loans or house flipping loans — are short-term, asset-based financing for real estate investors who buy distressed properties, renovate them, and sell for profit. Sab Tera Lending is a direct private lender based in Huntington, NY, that closes fix and flip loans in as few as 7 days with no credit score minimum and no income verification. We serve investors across New York, New Jersey, Connecticut, Florida, Texas, North Carolina, South Carolina, Georgia, Alabama, Virginia, Kentucky, Louisiana, Mississippi, Massachusetts, Michigan, Pennsylvania, Tennessee, Indiana, and Ohio — 20 states total.
How ARV-Based Underwriting Works
Fix and flip lenders underwrite on the after-repair value (ARV) — what the property will be worth after renovation — rather than the current as-is value used by banks. This allows us to fund 90% of purchase price plus 100% of verified renovation costs. The ARV cap (75% loan-to-ARV) is always the governing limit. Whichever is lower — the 90%+rehab calculation or the 75% ARV cap — determines your loan amount.
Requested: 90% of $250K + 100% rehab = $225K + $75K = $300,000
ARV cap: $450,000 × 75% = $337,500 → $300,000 funded ✓
The 70% Rule — Most Important Formula in Fix & Flip
The investor's 70% rule: Maximum Purchase Price = ARV × 70% − Renovation Costs. The 30% gap covers loan origination, holding costs, selling costs (6–8% agent commissions plus closing), and your target profit margin.
Example: $400K ARV × 70% = $280K − $60K rehab = $220K max offer. In highly competitive markets (NYC boroughs, Hoboken, Miami Beach, Austin) experienced investors push to 72–75%. In secondary or emerging markets, hold at 65–68% to protect downside. Use the profit calculator below to model your specific deal before making an offer.
Holding Costs — The Most Underestimated Variable
| Cost Component | Monthly Est. | 6-Month Total |
|---|---|---|
| Loan interest (9.5% I/O on $300K) | $2,375 | $14,250 |
| Property taxes (varies by market) | $400–$1,200 | $2,400–$7,200 |
| Insurance + utilities | $250–$500 | $1,500–$3,000 |
| Total holding cost | $3,025–$4,075 | $18,150–$24,450 |
Fix & Flip vs. Conventional Financing
| Feature | Sab Tera Fix & Flip | Conventional Bank |
|---|---|---|
| Credit Score Required | No Minimum ✔ | 680–740+ Required |
| Income Verification | None ✔ | W-2 + Tax Returns |
| Close Time | 7–14 Days ✔ | 45–90 Days |
| Distressed Properties | Yes ✔ | Rarely Approved |
| Underwriting Basis | ARV (Future Value) ✔ | Current As-Is Value Only |
| Rehab Funding | 100% of Rehab ✔ | None |
| First-Time Investors | Welcome ✔ | Typically Declined |
| LLC / Entity Borrowing | Yes ✔ | Rarely |
| Upfront Application Fees | $0 ✔ | Various Fees |
Sab Tera vs. National Fix & Flip Lenders — Credit Score Comparison
| Lender | Min FICO | Close Time | Max LTV | Upfront Fee |
|---|---|---|---|---|
| Sab Tera Lending | No Minimum ✔ | 7 Days ✔ | 90% LTV | $0 ✔ |
| Lima One Capital | 660 FICO | 3 weeks (new) | 90% LTV | Varies |
| Kiavi | 640 FICO | 7 days | 90% LTC | None |
| RCN Capital | 620 FICO | 10–21 days | 90% LTC | Varies |
| LendingOne | 620 FICO | 10–14 days | 90% LTC | Varies |
| Easy Street Capital | 600 FICO | 48 hrs–7 days | 90% LTC | $1,995 doc fee |
Verdict: Sab Tera Lending is the only major fix and flip lender with no credit score minimum, no upfront fees, and a same-day commitment. Investors declined by Lima One (660 FICO), Kiavi (640), RCN Capital (620), LendingOne (620), or Easy Street Capital ($1,995 doc fee) qualify with Sab Tera based on deal strength alone.
The Renovation Draw Process — How It Works
Renovation funds are held in escrow at closing and released in 2–4 draws as work is verified and completed. The draw process works as follows:
- Submit a draw request with photos documenting completed work and contractor invoices
- Drive-by or desktop inspection ordered same day — typically completed within 24–48 hours
- Draw approval issued within 1 business day of inspection report receipt
- Funds wired within 3–5 business days of draw approval — directly to your contractor or to you
Renovation budget verification: for projects above $15,000 we require an itemized scope of work (SOW) by trade — demolition, electrical, plumbing, HVAC, drywall, flooring, kitchen, baths, exterior/roofing — with material and labor costs stated separately. Projects under $15,000 require a one-page itemized summary.
Eligible Property Types for a Fix & Flip Loan
Sab Tera Lending funds fix and flip loans on the following property types across all 20 service states:
- Single-family residences — the majority of our fix and flip volume, from starter homes to luxury renovations
- 2–4 unit properties — duplexes, triplexes, and quads, common in Northeast and Midwest markets like Newark, Worcester, and Detroit
- Condominiums and townhomes — subject to HOA approval and reserve requirements where applicable
- Distressed and vacant properties — including bank-owned REO, tax-lien acquisitions, and estate sales that conventional lenders decline
- Fire and storm-damaged properties — evaluated on ARV and rebuild scope rather than current condition
- Properties requiring a certificate of occupancy — including illegal conversions being brought back to legal, code-compliant status
Owner-occupied primary residences are not eligible — Sab Tera Lending funds investment properties only. Mixed-use and larger multifamily properties (5+ units) fall under our commercial hard money and multifamily loan programs rather than the fix and flip product.
Common Fix & Flip Mistakes We See — and How to Avoid Them
After funding thousands of deals across 20 states, the same few mistakes account for most of the flips that underperform their projected profit:
- Underestimating rehab costs by skipping a detailed scope of work — a one-line "$50,000 renovation" budget almost always runs over; itemize by trade before you submit your deal
- Ignoring holding costs in the profit projection — every extra month of interest, taxes, insurance, and utilities directly erodes your margin, which is why our profit calculator above factors in hold time explicitly
- Over-improving for the neighborhood — high-end finishes in a starter-home submarket rarely appraise back at cost; match your renovation tier to comparable sales
- Skipping a contingency reserve — unexpected issues (electrical, plumbing, foundation) surface in nearly every renovation; budget 15–20% above your initial scope
- Waiting too long to list — every week on the market after renovation completion adds holding cost with no offsetting value; have your agent and listing photos ready before the final draw
BRRRR Strategy — One Lender, Full Cycle
The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) is the most powerful portfolio-building strategy in residential real estate, and Sab Tera Lending supports the full cycle with one lender. Use our fix and flip loan to acquire and renovate. Once the property is tenanted or appraised at market rent, refinance into our 30-year DSCR rental loan and pull equity out to fund the next deal. No income verification at any stage. No seasoning delays. No lender-switching friction. LLC-to-LLC seamless. Same team, same process, every deal.
Fix & Flip Loans by State — All 20 Service Markets
New York — Our Home Market
Nassau County fix and flip investors average $87K gross profit on the median deal — entry prices $350K–$600K, ARVs $500K–$900K. Suffolk County spans from entry-level Brentwood/Bay Shore flips at $300K–$450K purchase to Hamptons luxury renovations at $1.5M–$4M purchase with $3M–$8M ARVs. Brooklyn brownstone renovations in Crown Heights and Bed-Stuy produce $250K–$600K gross profits; Park Slope and Carroll Gardens full gut renovations achieve $2M–$4M ARVs. Queens two-family and three-family flips in Astoria, Woodside, and Jackson Heights consistently generate $300K–$500K margins. New York fix & flip loans →
Long Island — Nassau & Suffolk as a Distinct Market
We treat Long Island as its own service area separate from the five boroughs, because the deal math is different. Nassau County entry prices of $400K–$650K in Hempstead, Uniondale, and Freeport support ARVs of $600K–$950K after a full cosmetic-to-moderate renovation, with school-district premiums driving buyer demand in Levittown, Massapequa, and Farmingdale. Suffolk County spans from affordable entry-level flips in Brentwood, Central Islip, and Bay Shore at $300K–$450K purchase, up to Hamptons luxury gut renovations in the Town of East Hampton and Southampton at $1.5M–$4M purchase with $3M–$8M ARVs. Same-day commitment and 7-day close apply island-wide, and our underwriting team knows the local permit timelines, flood zones, and cesspool/septic requirements that trip up out-of-area lenders. Long Island fix & flip loans →
New Jersey
Hudson County (Jersey City, Hoboken, Bayonne) two-family and three-family renovations produce ARVs of $850K–$1.4M with entry prices of $400K–$650K. Essex County (Newark, Montclair, East Orange, Irvington) delivers the highest flip transaction volume in the state — Newark entry prices $200K–$400K with ARVs of $450K–$750K post-renovation. Bergen County (Fort Lee, Edgewater, Hackensack, Paramus) commands NYC commuter premium ARVs throughout. New Jersey fix & flip loans →
Florida
Miami inner-city (Overtown, Little Haiti, Allapattah, Liberty City) offers purchase prices of $200K–$450K with ARVs of $550K–$1.0M after full renovation. Tampa (Seminole Heights, Ybor City, College Hill, Riverside Heights) is the fastest-moving flip market in Florida. Orlando (Pine Hills, Azalea Park, Bithlo) provides a reliable rental or resale exit. Jacksonville delivers the highest volume of sub-$200K entry-price flips in the entire state. Florida fix & flip loans →
Texas
Houston inner loop (Midtown, Montrose, East End, Third Ward, East Downtown) delivers strong ARVs relative to entry prices. Dallas/Fort Worth (Oak Cliff, South Dallas, Garland, Mesquite) offers the highest flip transaction volume in Texas. Austin's east side (East Austin, Mueller, Cherrywood) has seen the fastest ARV appreciation in the state. San Antonio (Southside, Eastside, Highland Hills) provides affordable entry prices with dependable ARVs driven by military and healthcare buyer demand. Texas fix & flip loans →
North Carolina & South Carolina
Charlotte NC (Enderly Park, Seversville, West Charlotte, Hidden Valley) offers entry deals at $150K–$300K with ARVs of $350K–$600K — the most active flip market in the Southeast. Raleigh-Durham's Research Triangle delivers pharma and tech buyer demand for renovated product. Charleston SC historic district commands purchase prices of $400K–$900K with ARVs of $700K–$1.5M+. Greenville SC industrial growth corridor provides entry at $150K–$350K with ARVs of $300K–$600K. NC fix & flip loans → | SC fix & flip loans →
Georgia & Alabama
Atlanta's Westside corridor (Bankhead, Grove Park, Vine City, English Avenue) has produced 30–40% ARV appreciation since 2022 — entry prices of $80K–$180K with ARVs of $250K–$450K generating $100K+ gross profits. The BeltLine corridor (East Atlanta, Grant Park, Reynoldstown) commands premium ARVs. Alabama's Huntsville (fastest-growing Southeast city) and Birmingham (Avondale, Woodlawn, Wylam) provide high-yield flips dramatically underserved by national lenders. Georgia fix & flip loans →
Connecticut
The Fairfield County commuter belt (Bridgeport, Stratford, Milford, Ansonia, Derby) offers entry prices of $200K–$380K with ARVs of $420K–$750K driven by NYC and Stamford financial sector buyer demand. The Hartford corridor (Hartford, Waterbury, New Britain, Meriden, Bristol) delivers the highest flip transaction volume in the state with affordable entry prices across a wide range of property types. Connecticut fix & flip loans →
Virginia
Richmond's Church Hill and Manchester neighborhoods offer entry prices of $150K–$300K with ARVs of $325K–$550K, driven by downtown revitalization and a growing renter base. Hampton Roads (Norfolk, Virginia Beach, Newport News) delivers steady flip volume tied to naval base employment and VA-loan buyer demand at resale. Northern Virginia suburbs (Manassas, Woodbridge, Dale City) command NYC-adjacent-style premiums driven by federal government and defense-contractor employment. Virginia fix & flip loans →
Pennsylvania
Philadelphia's Kensington, Frankford, and Point Breeze corridors offer some of the lowest entry prices on the East Coast — $60K–$150K — with ARVs of $200K–$380K after a full renovation, producing strong percentage returns on modest capital outlay. Pittsburgh's North Side, Homewood, and Beltzhoover neighborhoods provide affordable acquisition with steady rehab-to-resale demand from healthcare and tech-sector buyers. Both metros support fast turnaround given lower average rehab scopes. Pennsylvania fix & flip loans →
Ohio
Cleveland's East Side (Slavic Village, Glenville, Collinwood) and Columbus's Linden and Franklinton neighborhoods deliver some of the highest cash-on-cash flip returns in the nation on entry prices as low as $40K–$100K. Cincinnati's Avondale and Walnut Hills add a third high-volume metro with strong renovation-to-resale spreads. Ohio's low property-tax basis and inexpensive contractor labor keep total project costs down relative to ARV. Ohio fix & flip loans →
Kentucky
Louisville's Portland, Shelby Park, and California neighborhoods offer entry prices of $60K–$140K with ARVs of $180K–$320K, supported by a stable renter base tied to UPS's Worldport hub and healthcare-sector employment. Lexington adds a second active market driven by university and bourbon-industry growth. Rehab costs run lower than coastal markets, keeping total project capital modest. Kentucky fix & flip loans →
Louisiana
New Orleans's Gentilly, Broadmoor, and Central City neighborhoods offer entry prices of $100K–$220K with ARVs of $280K–$500K, though flood-zone insurance and elevation requirements make local rehab and permitting knowledge essential. Baton Rouge provides a second market with lower flood exposure and steady state-government and LSU-driven rental demand. We underwrite flood-zone deals directly rather than declining them outright. Louisiana fix & flip loans →
Mississippi
Jackson and the Gulf Coast corridor (Gulfport, Biloxi) offer some of the lowest entry prices in our 20-state footprint — $50K–$120K — with ARVs of $150K–$280K. Lower price points mean smaller loan amounts and a lower barrier to entry for first-time investors testing the fix and flip model before scaling into larger markets. Mississippi fix & flip loans →
Massachusetts
Worcester, Springfield, and Brockton deliver the highest fix and flip transaction volume in Massachusetts outside greater Boston, with entry prices of $200K–$380K and ARVs of $400K–$650K. Triple-decker renovations are a common property type, offering built-in rental income potential for investors considering a BRRRR exit instead of a resale. Boston-adjacent commuter demand supports pricing throughout the corridor. Massachusetts fix & flip loans →
Michigan
Detroit's Bagley, Grandmont-Rosedale, and East English Village neighborhoods offer entry prices of $50K–$130K with ARVs of $180K–$350K, among the highest percentage-return markets we serve. Grand Rapids adds a second stable market with steadier appreciation and lower renovation risk. Detroit land-bank and blight-remediation programs create ongoing acquisition opportunities for investors who move fast on distressed inventory. Michigan fix & flip loans →
Tennessee
Memphis's Binghampton, Orange Mound, and Frayser neighborhoods offer entry prices of $50K–$120K with ARVs of $150K–$280K and strong rental demand for a BRRRR exit. Nashville's outer submarkets (Antioch, Madison, Donelson) command higher entry prices but faster resale velocity driven by continued in-migration. Both metros support quick 5–6 month rehab-to-resale timelines. Tennessee fix & flip loans →
Indiana
Indianapolis's Near Eastside, Haughville, and Riverside neighborhoods offer entry prices of $60K–$140K with ARVs of $180K–$320K, supported by steady population growth and a landlord-friendly regulatory climate that makes a rental exit straightforward if a sale takes longer than planned. Low property taxes keep holding costs down during longer rehabs. Indiana fix & flip loans →
Documents You'll Need to Submit a Fix & Flip Deal
Because we underwrite on the deal — not your income or credit — our document list is short compared to a bank or an institutional fix and flip lender:
- Purchase contract or accepted offer for the subject property
- Itemized scope of work — demolition, electrical, plumbing, HVAC, drywall, flooring, kitchen, baths, exterior/roofing, with material and labor stated separately for projects over $15,000
- Government-issued photo ID for all borrowers and guarantors
- Entity documents (operating agreement, articles of organization, EIN letter) if borrowing through an LLC or corporation
- Proof of funds for your down payment and reserves — bank or brokerage statement
- Contractor license and insurance if using a licensed general contractor for the rehab
No tax returns. No W-2s or pay stubs. No debt-to-income calculation. No personal financial statement. This is the core difference between Sab Tera Lending's asset-based underwriting and a conventional mortgage's income-based underwriting.
How We Actually Underwrite a Fix & Flip Deal
Every deal is evaluated on four factors, in this order of importance:
- After-repair value (ARV) — supported by recent comparable sales within a reasonable radius and timeframe, not a Zestimate or an investor's own optimistic number
- Renovation scope and budget realism — does the itemized scope match the property's actual condition, and is the per-square-foot rehab cost consistent with the market
- Exit strategy — resale, refinance into a DSCR rental loan, or a documented alternative, with a realistic timeline
- Property location and marketability — days-on-market trends and buyer demand in the immediate submarket, not just the metro area
Notice what is not on that list: credit score, income, employment history, and prior flipping experience. A first-time investor with a strong deal on all four factors above qualifies exactly the same as an investor with 50 completed flips. This is what "no credit minimum" means in practice, not just in marketing copy.