To find the right hard money lender for your fix and flip, you need to: (1) know your deal numbers (purchase price, rehab budget, LTC), (2) match the lender to fix-and-flip deals specifically, (3) verify state licensing and LTC offerings, (4) compare rates/terms from 3-5 lenders simultaneously, and (5) confirm speed to close before committing. The wrong lender kills deals — lost earnest money, missed closings, wasted weeks.
I've funded $58M+ in hard money loans over 20+ years, and I've seen deals collapse at the finish line because the borrower picked the wrong lender.
This isn't theoretical. It happens.
A borrower finds a property — perfect ARV at $350,000, purchase price $200,000, rehab budget $65,000. The math works. They get the property under contract, put down earnest money, and call a lender they found on Google. Fast-forward two weeks: that lender can't fund fix-and-flip deals in that state, or they require a 60% LTC and this deal needs 70%, or their minimum loan size is $500,000 and this deal is only $265,000.
Now the earnest money is at risk. The closing date is slipping. The seller is threatening to walk. All because the borrower didn't ask the right questions upfront.
The truth: Finding the right hard money lender takes maybe 2-3 hours of work. Finding the wrong one costs you thousands in lost deals and burned cash.
Here's exactly what to do.
Before you contact a single lender, you need to know three numbers cold:
1. Purchase Price — what you're paying for the property as-is. 2. Rehab Budget — how much you'll spend to bring the property to exit condition. 3. After-Repair Value (ARV) — what the property will be worth when rehab is complete.
Once you have those three, you can calculate:
Loan-to-Cost (LTC) = Loan Amount / (Purchase Price + Rehab Budget) Loan-to-Value (LTV) = Loan Amount / ARV
Example Deal:
If you need a $250,000 loan:
Lenders ask both because they protect their downside differently. LTC measures how much you're borrowing relative to your total hard costs. LTV measures how much you're borrowing relative to the finished value.
Most hard money lenders will fund 65-80% LTC and want to stay below 70-75% LTV on fix-and-flip deals. Know your numbers before you call — it saves everyone time and signals you're a serious borrower.
Hard money lenders specialize. Some crush fix-and-flip deals but won't touch rental properties. Some focus on new construction. Some lend in seven states; others in three. Some have a $150,000 minimum loan size; others will do $50,000.
If you pitch a fix-and-flip deal to a DSCR lender, they'll say no. That's not because they're bad lenders — it's because they don't have the experience or risk infrastructure for your deal type.
What to look for when checking lender specialization:
Check your state's licensing board. If a lender claims to lend in your state but isn't licensed, walk away.
Know your deal's LTC before you call. If your deal is 78% LTC and a lender maxes at 70%, that's a no.
Most lenders have minimums ($50,000-$250,000) and maximums ($2M-$5M+). Your deal must fall in their sweet spot.
Some lenders require 2-5+ prior flips. Others will fund first-timers if the deal is strong. Know which category you fall into before applying.
Ask how many draws, any inspection costs, and how long between draw request and funds arriving.
Most hard money lenders charge a penalty for early payoff. A 3% penalty on a $250,000 loan is $7,500. Ask explicitly: "What's the prepayment penalty if I pay off before maturity?"
Ask specifically: "From approval, how many days until funds are wired?"
Why multiple quotes matter:
When comparing quotes, look at: interest rate, origination/processing fee, prepayment penalty, term length, LTC approved, and speed to close.
The Broker Cheetah approach: submit your deal once and get quotes from multiple verified hard money lenders simultaneously. One application, multiple quotes, compare and choose. Saves 8-10 hours of phone calls per deal.
"Have you funded deals in my specific market before?" — Lenders who know your area understand local ARV, rehab costs, and exit timelines.
"Walk me through your inspection process." — How many, how much notice, and what's the cost? Budget $0-$500 per inspection.
"If the rehab takes longer, can I extend the term?" — Real rehabs slip. Know if you can extend (usually for 1% per month) or if the lender will call the loan due.
"If the appraisal comes in lower, what happens?" — Some renegotiate LTV. Some demand more cash. Know before closing.
"What's your typical borrower's experience level?" — Tells you if you're a fit or on the edge of their tolerance.
"Can you provide a recent borrower reference?" — Call them. Ask: Did they close on time? Any surprises? How was communication?
How many hard money lenders should I contact for a fix and flip loan?
Contact 3-5 lenders simultaneously. This gives you enough options to compare rates and terms without being inundated. Each additional application takes 15-20 minutes, so 3-5 is a practical balance.
What LTC ratio should I expect for a fix and flip hard money loan?
Most hard money lenders will fund 65-80% LTC on fix and flip deals, with 75% being common. Experienced investors with strong deal profiles can hit 80-85%. First-time flippers typically see 60-70%.
How fast can a hard money lender close on a fix and flip?
Typical range is 7-21 days from approval. Some lenders can do 5-7 days in ideal conditions. The bottleneck is usually appraisal (3-7 days) and title work (2-5 days). Always confirm your lender can hit your specific close date before applying.
What credit score do I need for a hard money fix and flip loan?
Hard money lenders care less about credit than banks, but most want a minimum of 580-620 for riskier deals and 640-680 for conservative loans. Some go lower (550+) if the deal is strong. Lower score = higher rate and fees.
What is the difference between LTC and LTV in fix and flip lending?
LTC (Loan-to-Cost) = Loan Amount / (Purchase Price + Rehab Budget). Measures how much you're borrowing relative to total hard costs. LTV (Loan-to-Value) = Loan Amount / ARV. Measures how much you're borrowing relative to the finished property value. Both matter — a deal might have acceptable LTC but unacceptable LTV. Lenders typically use the lower of the two to determine your loan amount.
Finding the right hard money lender doesn't have to take weeks. With your deal numbers ready and the right search tool, you can compare multiple lenders and pick the best fit in a few hours.
Broker Cheetah searches 200+ verified hard money lenders filtered to your specific deal criteria and sends one-click quote requests to multiple lenders simultaneously.
[Search Lenders on Broker Cheetah →]
Justin is the founder of Broker Cheetah and Power Loan Group, with over 20 years of experience in hard money lending and real estate finance. He has originated and managed $58M+ in hard money loans and built Broker Cheetah to solve the problem he faced daily: finding the right lender for each specific deal, fast.
Last Updated: April 2026
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