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Archive for June 2026

How Do Private Money Lenders Underwrite a Fix-and-Flip Loan?

By Andrew J. Liersch III | June 21, 2026
Diagram showing how a private money fix-and-flip loan is sized by the lesser of the ARV-LTV cap and the Loan-to-Cost cap, using a $600,000 San Diego deal example

Short answer: A private money lender underwrites a fix-and-flip loan around two things — the property and the exit plan — not your credit score or W-2 income. The lender estimates the home’s After-Repair Value (ARV), caps the loan at roughly 65–75% of that ARV (or a percentage of total project cost, whichever is lower),…

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Slingshot Investments originates and/or arranges short-term fix & flip financing, long-term rental, and short-term rental financing, as well as office and commercial financing. Slingshot Investments may make, arrange, or acquire business purpose loans on non-owner occupied residential & commercial real estate. Slingshot Investments does not originate, arrange, or acquire owner-occupied residential mortgage loans. Slingshot Investments California Broker License #02002790. All loans are subject to borrowers and underlying collateral meeting Slingshot Investments’ current underwriting criteria. Nationwide except in AK, AZ, MN, ND, NV, OR, SD VT. Information, rates, and pricing are subject to change without prior notice.

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