Construction Loan vs. Fix-and-Flip Loan: Which Does Your Project Need?

By Andrew J. Liersch III | September 11, 2026 |
Spectrum diagram showing where a project shifts from a fix-and-flip loan to a ground-up construction loan — cosmetic rehab and gut renovation underwrite as fix-and-flip, while additions, structural work, and teardowns underwrite as construction — with four warning signals listed below. Slingshot Investments.

By Andrew J. Liersch III — Founder & CIO, Slingshot Investments. 10+ years in private lending, $500M+ funded. Former Wells Fargo Private Mortgage Banking, Bear Stearns, and Deloitte Consulting. Short answer: A fix-and-flip loan funds the purchase and renovation of an existing structure; a ground-up construction loan funds land plus a build from the dirt. The interesting question lives in…

Read More

How Much Land Value Counts Toward a Construction Loan?

By Andrew J. Liersch III | September 2, 2026
Diagram showing how land value counts toward a ground-up construction loan in three scenarios — buying the lot, owning it free and clear, and owning it with a land loan — plus a worked example where $350,000 of owned land equity covers the entire down payment. Slingshot Investments.

By Andrew J. Liersch III — Founder & CIO, Slingshot Investments. 10+ years in private lending, $500M+ funded. Former Wells Fargo Private Mortgage Banking, Bear Stearns, and Deloitte Consulting. Short answer: If you own your lot free and clear, its appraised value typically counts as equity toward your down payment — and on many deals, it covers the…

Read More