You spot a worn-down property on the market and immediately start calculating numbers in your head. It’s got potential. You can already see the before and after photos in your mind. But here’s the thing if you don’t have your financing locked in, someone else is gonna scoop it while you’re still figuring things out.
In real estate, speed is everything. Especially with fix and flip projects. That’s why getting pre-approved for a fix and flip loan isn’t optional. It’s how you show sellers (and yourself) that you’re serious, prepared, and ready to move fast.
At TrueBridge Loans, we work with California investors every day who need to act fast on time-sensitive deals. Here’s the exact checklist you’ll want to follow if you’re trying to qualify for a fix and flip loan with us or anyone else. No gatekeeping here, just real info to help you win.
What Is a Fix and Flip Loan?
Before we get into the checklist, let’s make sure we’re on the same page.
A fix and flip loan is a short-term loan designed for real estate investors who are buying a property, renovating it, and selling it quickly for profit. It’s totally different from a 30-year mortgage. These loans are based more on the value of the property (now and after repairs) than your long-term income history.
Unlike traditional bank loans, fix and flip loans are faster to approve, more flexible, and usually interest-only for the loan term. The goal is to buy, fix, sell, and repay the loan usually within 6 to 12 months.
If you’re flipping houses in California, this type of financing gives you the speed and leverage you need to compete in a wild market.
Also Read: Multifamily Hard Money Loans
Why Pre-Approval Matters
Let’s say you’re at an open house and the agent tells you there are already three offers in. If you have a pre-approval letter in hand, you’re instantly taken more seriously. It shows that your financing is ready to go and you’re not just window shopping.
Other reasons pre-approval is a power move:
- It tells you how much you can borrow before you start making offers.
- It speeds up the closing timeline once your offer is accepted.
- It gives you negotiating power, especially with motivated sellers.
- It helps you avoid last-minute surprises.
Basically, pre-approval turns “I want to flip this house” into “I can flip this house.”
Proof of Experience: Show You’re Not New to This
One of the first things lenders look at is your track record. Have you flipped properties before? Have you managed renovations or real estate investments?
Don’t worry if you’re not a house-flipping veteran, but having at least some relevant experience gives you a big advantage. It tells the lender that you know how to manage timelines, budgets, and construction surprises.
What counts as experience?
- Previous fix and flips
- Owning rental properties
- Working in construction or real estate
- Partnering with someone experienced
You’ll want to provide documentation like:
- Before and after photos
- Budget summaries
- Profit breakdowns
- Timelines for each flip
Even one successful flip can make a huge difference in your loan terms.
Credit Score and Financial Health
Fix and flip loans are asset-based, meaning the property matters more than your income. But that doesn’t mean your credit doesn’t count.
A credit score of 620+ is generally the baseline for most private lenders, though some go lower with the right deal. Higher credit = better rates and terms.
Lenders also check for red flags like:
- Recent bankruptcies
- Major delinquencies
- Tax liens or unpaid judgments
Pro tip: If your score is on the edge, clean up small balances and dispute old errors before applying. A few quick moves can bump your score up just enough to help.
Down Payment and Cash Reserves
Fix and flip lenders want to see that you’ve got skin in the game. That usually means a down payment between 10% and 25% of the purchase price.
But that’s not all. You’ll also need cash reserves to cover:
- Rehab costs
- Loan interest
- Permits and inspections
- Unexpected delays
Make sure you can show proof of funds either with bank statements, business account screenshots, or a combination. The more prepared you look, the smoother this goes.
Detailed Property Information
Even if you haven’t locked down your target property yet, it helps to have a specific example when you apply.
You’ll need to show:
- Address and listing price
- Rehab estimate
- ARV (After Repair Value)
- General scope of work
If you’re still shopping, pick a sample deal that reflects your budget and strategy. Lenders just want to see that you know your numbers and how this investment plays out.
Rehab Plan and Budget Breakdown
This part separates casual flippers from real investors. If you want that pre-approval, you need to show a clear plan for your renovation.
Here’s what that usually includes:
- A line-item budget (labor, materials, permits, etc.)
- Timeline for the work
- Contractor quotes or estimates
- A cushion for surprises
Don’t just estimate. Lenders want to see that you understand the costs and logistics, not just the Instagram-worthy results.
Exit Strategy: How You’ll Repay the Loan
You need a clear game plan for how you’re going to pay back the loan. That’s what we call an exit strategy.
Most common options:
- Sell after renovation: The classic flip
- Refinance into a long-term loan: Great if you decide to keep it as a rental
- Bridge to another investment: If you’re rolling profits into your next deal
Whatever your strategy, make it specific and achievable. Lenders want to see that you’re not just buying to hold, they want their money back on time.
Appraisal and ARV Expectations
One of the most important parts of the approval process is proving that the after-repair value (ARV) is real.
That means you’ll likely need:
- A formal appraisal ✔
- A broker price opinion (BPO) ✔
- Recent comps in the area ✔
Lenders want to see that your flip has profit potential. If you say the ARV is $700K but the comps are all at $500K, it’s gonna be a no from us.
| What You’ll Need | Why It Matters |
| Comps from the area | Justifies your projected ARV |
| Scope of renovation | Shows how you’ll increase value |
| Before/after examples | Proof of flipping potential |
| Realistic sales timeline | Helps estimate return window |
Entity Documentation (LLC or Individual)
Fix and flip loans can go to individuals or business entities. Many investors choose to borrow through an LLC to protect personal assets.
If you’re applying through a company, here’s what you’ll need:
- Articles of incorporation
- Operating agreement
- EIN (Employer Identification Number)
- Business bank statements
At TrueBridge Loans, we work with both individual and LLC borrowers. Just make sure your paperwork is in order before applying. Nothing slows things down like missing docs.
California-Specific Tips
Since we only work in California, we gotta mention a few regional things:
- Make sure your contractors are licensed and insured
- Know your city’s permit process. It varies a lot
- Be aware of the short-term holding costs in high-cost areas
- Factor in California’s holding taxes and local ordinances
Local knowledge is your best friend here. And the good news? We’re local too. We’ve helped tons of investors across the state get funding fast and stress-free.
FAQs
How fast can I get pre-approved for a fix and flip loan?
At TrueBridge Loans, we can get you pre-approved in 24 to 48 hours in most cases; sometimes faster.
Do I need to have a property under contract to apply?
Not necessarily. Having a sample deal helps, but we can still get you pre-approved based on your target budget and investment strategy.
What if I’ve never flipped a house before?
You can still qualify. We’ll look at your background, team, and preparation. First-timers are welcome. We will walk you through the process.
How much money do I need to start?
At minimum, expect to put down 10%–25% of the purchase price and have enough reserves to cover your renovation and loan interest.
Conclusion
Getting pre-approved for a fix and flip loan isn’t just a smart move. It’s the move if you want to move fast and win deals in a competitive market.
With this checklist in hand, you’re already ahead of most investors. And if you want a lender that actually picks up the phone, listens to your goals, and moves at your speed?
TrueBridge Loans has your back. Contact us today at (805) 719-7008 or email at info@truebridgeloans.com. Let’s get your next project funded and flipped.
