Your client found a deal on Tuesday night. They want to know by Wednesday morning whether the money works. You do not need a term sheet to answer that. You need five minutes, six inputs and one sentence you never say.
The sentence: "You'll get 8.75%." Fix and flip pricing at Funded Capital starts from 8.75%. That is a floor, not a quote. Where a file lands depends on the deal, the borrower and the appraisal. Rate ranges only. Never a guarantee.
Here is the five-minute walk we use with brokers.
Why speed on pricing matters now
Margins are thinner than they were. ATTOM's Q1 2026 home flipping report (June 18, 2026) put the typical gross flipping profit at $66,000, a 25.4% margin, down from 29.6% a year earlier. That gross figure is before rehab and holding costs. The same report shows flips took 165 days on average and 61.1% were bought with cash.
Two takeaways for brokers. First, a flipper working on a 25% gross margin cannot absorb a surprise in the financing. Second, the financed buyer is competing with cash. A fast, honest range keeps your client in the running.
Minute 1: the three deal inputs
Every fix and flip price starts with three numbers:
- Purchase price. The contract price, not the list price.
- Rehab budget. The contractor's scope, line by line. A round number with no scope behind it is a red flag.
- After-repair value (ARV). What the finished house sells for, supported by recent comparable sales.
Our public loan calculator takes these same three, plus a rate and a term, and returns the estimated return on the deal. Run it before you call the client back. If the deal does not work at a conservative rate, no loan structure will save it.
Ask the client one follow-up on the rehab: is there a contingency in that number? A budget with no cushion is a budget that will be wrong. If the scope has none, run the numbers a second time with 10% added to rehab and see if the deal still holds. That takes thirty seconds and tells you how much room the client really has.
Quick sanity check: the 70% rule. ARV times 70%, minus rehab, should be at or above the purchase price. It is a screen, not an underwriting standard, but it catches thin deals fast. For the ARV itself, see how to calculate ARV.
Minute 2: the three borrower inputs
- Experience. How many flips has the client completed, bought and sold? This is the input that moves pricing and leverage most. Get dates and addresses, not a rough count.
- Credit tier. Most programs look for 660+. The best tiers start at 680+. Scores from 640 to 659 are reviewed case by case. You do not need a hard pull to price; ask for a recent score and say the range may shift once credit is run.
- Property state. We lend in 45 states; excluded are VT, UT, OR, SD and ND. Check this before anything else if the deal is out of state.
If the client is closing in an LLC, note it now. Entity documents come later, but a brand-new entity is worth flagging. Our LLC real estate loan guide covers what lenders ask for.
Minute 3: the leverage math
On our fix and flip program, leverage is sized on total cost: purchase plus rehab. The appraisal then has to support the ARV the deal depends on. If you need the difference between the two measures, read LTV vs. LTC.
Here is a worked example. All numbers are illustrative, not a quote.
| Line | Amount |
|---|---|
| Purchase price | $210,000 |
| Rehab budget | $55,000 |
| Total cost | $265,000 |
| Loan at 90% of cost (illustrative) | $238,500 |
| Client's share of cost | $26,500 |
| After-repair value | $380,000 |
| Loan as a share of ARV | 62.8% |
The deal passes the 70% screen: $380,000 times 70% is $266,000, minus $55,000 of rehab leaves $211,000, just above the $210,000 purchase price.
The client's cash is not just the $26,500. Add closing costs and points. Our guide to hard money closing costs walks through each line.
Minute 4: the rate range and the carry
Now the rate. Say it as a range and tie it to the inputs:
"Fix and flip pricing starts from 8.75%. With your experience and credit, you are likely toward the lower end. The final rate is set in underwriting."
Then give the client the number they care about more than the rate: monthly carry. Loans are interest-only on 12- or 24-month terms. To stay conservative, run the carry as if the full loan were drawn on day one, at a rate above the floor.
| Illustrative rate | Monthly interest on $238,500 | Six months |
|---|---|---|
| 9.0% | $1,788.75 | $10,732.50 |
| 10.0% | $1,987.50 | $11,925.00 |
| 11.0% | $2,186.25 | $13,117.50 |
These are illustrative rates to size the carry. They are not our rate sheet and not a quote. The point: a full percentage point on this loan moves six months of carry by about $1,200. That rarely kills a deal. A rehab that runs three months long often does. See holding costs on a house flip.
What moves a file within the range
The range is not random. The same six inputs decide where a file lands. Here is the direction each one pushes:
| Input | Toward the lower end | Toward the higher end |
|---|---|---|
| Experience | Several completed flips, documented | First flip, or flips you cannot document |
| Credit | 680+ | 640–659, reviewed case by case |
| Rehab scope | Line-item bid from a licensed contractor | Lump sum with no scope behind it |
| ARV support | Recent closed sales nearby | Listings, or sales from another neighborhood |
| Property | Standard single-family in a liquid market | Unusual layout, rural, or thin resale market |
Two of those five are in your control before submission. You cannot change a client's credit. You can make sure the rehab scope is itemized and the comps are real closed sales. That is often the difference between the middle of the range and the bottom of it.
One more habit worth building: write the inputs down in the same order every time. Purchase, rehab, ARV, experience, credit, state. When the client calls back with a changed number, you can re-price in one minute instead of five.
Minute 5: what to say, and what not to say
The script that protects you and the client:
Say:
- "Based on the numbers you gave me, this looks like a fit."
- "Pricing starts from 8.75%. Your file will likely land in a range. I will have a term sheet for you, usually within 2 hours of a complete submission."
- "Everything is subject to underwriting, the appraisal, title and insurance."
Do not say:
- "You're approved."
- "Your rate is X."
- "We close in five days." The honest number is 5–10 business days once the file is complete.
A range you can defend beats a number you have to walk back. Clients remember who told them the truth at the start. Brokers who quote a floor as a promise spend the next two weeks explaining the difference.
Turn the five minutes into a term sheet
Once the client says go, send the same six inputs with the scope of work and the purchase contract. Registered brokers can submit through the broker portal. Everyone else can apply here. Before you submit, read what a lender checks before issuing a broker term sheet so the first pass is clean.
Brokers earn up to 3% per closed loan. See how broker compensation works.
Terms are subject to underwriting, appraisal, title, and insurance.
Price your next deal today
Run the numbers on the calculator, then Apply Now. Term sheet in 2 hours on average. Close in 5–10 business days once the file is complete.
Questions on a live deal? Call (305) 857-5620.
Terms are subject to underwriting, appraisal, title, and insurance.
Frequently Asked Questions
What information do I need to price a fix and flip loan?
Can a broker quote a client an exact hard money rate?
What credit score do fix and flip lenders look for?
How much cash does a client need to bring to a fix and flip?
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Written by
Luis Fajardo
Senior Sales Director, Funded Capital · Lending to real estate investors nationwide — $500M+ funded across 1,200+ deals.