For most first-time flippers, a private fix-and-flip loan is the best way to finance the deal. It can cover most of the purchase and the full rehab, approves on the deal instead of your income, and closes fast. At Clion Capital, you could fund a $310,000 project with about $23,250 down plus closing costs.
What Are Your Financing Options for a First Flip?
| Option | Pros | Cons |
|---|---|---|
| All cash | No interest or lender | Ties up all your capital |
| Home equity line | Lower rate | Puts your home at risk; rehab not tied to the deal |
| Bank loan | Lower rate | Slow, income-based, often will not fund rehab |
| Equity partner | Little cash needed | Gives away a large share of profit |
| Private fix-and-flip loan | Funds purchase and rehab, fast, deal-based | Higher rate than a bank |
A private loan wins for most first deals because it solves the two problems new investors have: limited cash and limited time. See our comparison of private money vs. an equity partner.
How Do You Pick Your First Deal?
Your first deal should be simple. Cosmetic rehab, a neighborhood you know, and a price range where flips actually make money.
ATTOM found that in Q2 2026, homes bought for $100,000 to $200,000 earned typical margins of 28%, while homes bought for $50,000 or less posted a typical loss (attomdata.com). Cheap is not the same as profitable. The typical flip took 161 days, so budget for six months of holding costs.
Timing helps too. October has historically carried the lowest premium of any month for buyers, at 7.0% above market value (attomdata.com).
What Do Lenders Look for From a First-Time Flipper?
- A solid deal. Purchase price plus rehab well below the after-repair value.
- A realistic budget. A line-item scope of work from a contractor.
- Cash for your share. The down payment, closing costs and reserves.
- A team. A contractor, agent and title company.
Experience helps, but it is not required. Investors bought 27% of U.S. single-family homes from March to June 2026 (cotality.com), and every one of them did a first deal once.
What Does the First Deal Cost to Finance?
On a $250,000 purchase with $60,000 of rehab, a 92.5% loan-to-cost loan is $286,750. You bring about $23,250 plus closing costs and reserves. Over six months at 10%, interest is about $14,300 if the full balance were out the whole time, and points and fees about $5,300.
Run your own numbers with our fix-and-flip profit calculator guide before you make an offer. Know your numbers before you need a lender.
What Are Your First Steps?
- Get a rate quote so you know your buying power.
- Line up a contractor and get a written scope.
- Pull sold comparables to estimate after-repair value.
- Make offers that work at your numbers, not the seller’s.
At Clion Capital, fix-and-flip rates start at 9.00%, with origination from 1.00%, a $999 underwriting fee and no income verification. Read how fix-and-flip loans work, then see your rate at apply.clioncapital.com with no hard credit pull.
Frequently Asked Questions
Can I get a fix-and-flip loan with no experience?
Yes. Many private lenders, including Clion Capital, work with first-time flippers. Leverage may be slightly lower on a first deal, and a strong deal and contractor help.
How much money do I need for my first flip?
With a 92.5% loan-to-cost loan, about 7.5% of the purchase and rehab, plus closing costs and reserves. On a $310,000 project, that is about $23,250 before closing costs.
Do I need good credit to get a flip loan?
Credit affects pricing and leverage, but the deal drives the approval. Clion Capital uses asset-based underwriting with no income verification.
Should I use a HELOC for my first flip?
It can work for small deals, but it puts your home at risk and does not tie rehab funding to the project. A fix-and-flip loan funds the rehab in draws as work is done.
How long does it take to get a fix-and-flip loan?
Clion Capital issues term sheets within 24 hours and closes fix-and-flip loans in 7 to 10 business days.
Last updated October 27, 2026.
Sources and References
- ATTOM: Q2 2026 U.S. Home Flipping Report
- ATTOM: Best Days and Months to Buy a Home
- Cotality: Investor Report, Q2 2026
- Clion Capital: fix-and-flip loans
About the Author
Clion Capital is a direct private lender for professional real estate investors, offering fix-and-flip, bridge, new construction and DSCR rental loans. Our principals work directly with every borrower, and 70% of our business comes from repeat clients. See your rate instantly at apply.clioncapital.com or learn more about Clion Capital.