The Beginner’s Guide to Fix-and-Flip Loans in Connecticut
By Quick Real Estate Funding
House flipping is one of the most popular ways to build wealth in real estate, but financing can often be the toughest part for new investors. In Connecticut, demand for renovated homes is strong, yet many banks hesitate to lend on distressed properties. That’s where fix- and-flip loans come in – fast, flexible funding designed specifically for real estate investors.
What Is a Fix-and-Flip Loan?
A fix-and-flip loan is a short-term loan that covers both the purchase price of a property and the cost of renovations. Instead of focusing on your income or tax returns, lenders base approval on the property’s value and the after-repair value (ARV). For example, if you buy a home for $150,000 and plan to invest $50,000 in renovations, a fix-and-flip lender will look at the ARV, which may be $275,000 or more after repairs. This allows you to borrow enough to cover purchase and rehab costs while keeping your cash
available for other deals.
Why Traditional Banks Don’t Work for Flips
Traditional lenders usually avoid properties that need major repairs. They want move-in- ready homes and stable borrowers with W-2 income. Even if you qualify, the loan process can take up to 60 days or longer—too slow for the fast-paced flipping market. Private money and hard money lenders fill this gap by focusing on the deal itself, not your personal income. With approvals in days instead of weeks, investors can act quickly on distressed or off-market properties.
Key Features of Fix-and-Flip Loans
– Speed: Funding in as little as 7–14 business days.
– Flexible Credit Standards: Perfect for new or experienced investors.
– Short-Term: Typical loan terms are 12–18 months.
– Covers Rehab Costs: Funds are often released in draws as work is completed.
Connecticut’s Fix-and-Flip Market
Connecticut has strong demand for updated single-family homes, especially in cities like Bridgeport, New Haven, Waterbury, Hartford, Norwalk, Milford and Stamford. Many older homes are undervalued, giving flippers a great opportunity to add equity through renovations.
With the right loan, investors can purchase distressed homes, improve them, and resell at a higher price—building both income and experience.
Tips for First-Time Flippers
1. Run the Numbers Carefully: Use the 70% rule—don’t pay more than 70% of ARV minus repairs.
2. Work With Trusted Contractors: Keep your renovation budget realistic and on schedule.
3. Plan for Holding Costs: Taxes, insurance, and utilities add up during the rehab.
4. Partner With the Right Lender: A fix-and-flip loan should help you move quickly without unnecessary red tape.
Final Thoughts
Fix-and-flip loans are one of the most important tools for real estate investors in Connecticut. They make it possible to buy properties banks won’t touch, fund renovations, and build wealth by turning distressed homes into market-ready assets. At Quick Real Estate Funding, we specialize in helping investors succeed with fix-and-flip financing. Whether you’re flipping your first property or your fiftieth, our fast approvals and flexible loan programs can help you close deals with confidence. Contact us today to learn how we can support your next flip. https://www.quickrealestatefunding.com/