Rehab Loans for Pros: In, Out, Paid — In ~3 Months

Experienced flippers don’t marry their money—they borrow it, use it, and get out fast. With a rehab rate around 8% and no prepayment penalty, a 3-month turn means you’ve effectively paid about 2% to leverage other people’s money. Pair that with up to 90% LTC, and your cash-in is small while your return on cash can be huge.

Why speed + no prepay matters

  • 8% for 12 months ≈ 0.67% per month

  • 3 months ≈ ~2% cost of capital on what you’ve drawn

  • No prepay = finish early; sell or refi whenever it makes sense

Case study you can feel

Deal:

  • Purchase: $500,000

  • Rehab: $100,000

  • Total cost (before carry/selling): $600,000

  • ARV: $800,000

  • Leverage: 90% LTC → Loan ≈ $540,000; Equity at close ≈ $60,000

Carry & exit (3-month project):

  • Interest @ 8% for 3 months on ~$540,000 → ~$10,800 (≈ 2%)

  • Selling costs (assume ~7% of ARV) → ~$56,000

  • Misc. carry/ins/taxes placeholder → ~$5,000 (update with local numbers)

All-in math:

  • Base costs: $600,000

  • Interest: $10,800

  • Selling: $56,000

  • Misc. carry: $5,000

  • Total ≈ $671,800

Profit:

  • $800,000 – $671,800 = ~$128,200

Return on cash (3 months, counting all out-of-pocket)

  • Cash-in = Equity ($60,000) + Interest ($10,800) + Misc. carry ($5,000) = ~$75,800

  • ROI ≈ $128,200 ÷ $75,800 ≈ ~169% (three-month ROI)

The point: at 90% LTC, you’re using roughly $75.8k of your own cash to control a $600k project and capture a ~$128k spread in about three months—after paying your interest and carry.

How we structure this (so you move fast)

  • No prepayment penalty on rehab loans → sell or refi as soon as you’re done

  • Milestone draws that match your schedule (deposit → fabrication → delivery → install)

  • Interest-only and interest reserves available to smooth cash flow during the rehab window

  • DSCR take-out option when you decide to hold (rates from 5.75%); we’ll model a permanent buydown break-even so you only buy points when it pencils

Quick checklist for a same-day soft quote

  • Address & purchase status

  • Scope/budget & timeline (Gantt if you have it)

  • Comps supporting ARV

  • Experience snapshot (or GC background)

  • FICO band

Reply with the basics or start at LoanFunders.com. We’ll return max LTC, a draw calendar, and a 3-month carry preview at 8% with no prepay—so you can focus on finishing, not financing.

Not a commitment to lend. Eligibility, rates, and terms subject to change and approval. Actual interest, fees, and proceeds vary by credit, leverage, timeline, and market conditions.