Fix and Flip Loan

For real estate entrepreneurs with ingenuity and vision, there are alway opportunities. By leveraging Bluestone’s Fix & Flip product, you can acquire and rehab undervalued property before deciding whether to sell or refinance.

Commonly referred to as The BRRRR Method (Buy, Rehab, Rent, Refinance, Repeat), fix and flip real estate investing can be a great way to diversify your portfolio by generating active cash flow. Bluestone can assist with both the purchase and the renovations costs associated with your project. The properties eligible for this program are non-owner occupied residential dwellings including detached and semi-detached single-family homes, townhomes, condos, and two to four unit rental properties.

We are a Direct Lender

Bluestone is a direct balance-sheet lender, which means it uses its own capital when deploying loans. All underwriting and investment decisions are made by the Bluestone team. You, as the borrower, have direct access to our team.

About Bluestone's Fix and Flip Loan

Loan Amount

Bluestone targets small-balance loans between $200,000 and $3,000,000. These loan amounts are based on the fully disbursed loan amount after renovations are complete.

Term

Our loan product is a 12-month interest-only term. Bluestone will build in an interest reserve to carry the loan payment until the property sells.

Interest Rate

Bluestone’s pricing starts at 11.99% but can vary as national price indices change. The interest rate is paid towards your outstanding principal balance on an interest-only basis.

Loan to Value (LTV)

Bluestone’s initial loan-to-value (LTV) on investment properties is 70% of the purchase price or as-is appraised value. Bluestone will finance 100% of the renovations not to exceed 70% of the when-complete appraised value of the property.

Real Estate Experience

Although prior experience with real estate fix and flip projects is not required, Bluestone would like to see previous real estate activity as an owner and/or operator.

Ready to learn more?

Submit an inquiry to find out what we can do for you.

Collateral Types

Lending Area

When Bluestone began in 2017, the firm predominantly originated loans in the Mid-Atlantic region as well as southern Florida. Through organic growth and building out relationships with third-party vendors, Bluestone now has the ability to lend nationwide with a particular focus on densely populated areas with active sale comps.

Get in touch today to find out how our regional expertise can work for you.

Let us help you get the financing you need for your next project.

Bluestone’s quick and easy process can get you on the way to finding the funding you need.

Fill out our inquiry form.
Our staff will follow up about which of our loan products might be the best fit for your situation.
Complete our quick and easy application and document submitter process.
Get the funding you need.

Frequently Asked Questions

What is a direct lender?

A direct lender is a credit provider who offers loans directly to borrowers without intermediaries. This means that the lender finances the deal with its own balance sheet rather than originating through another lending source. As a direct lender, Bluestone handles the entire loan process and is responsible for underwriting the loan, setting the terms, and servicing the loan throughout its life. The main advantage of working with a direct lender like Bluestone is that you are dealing directly with the funding source which often leads to quicker closing timeframes.

How long does it take to close a loan?

Once a term sheet is executed by the borrower, Bluestone will order third-party reports including appraisal, title, etc. Depending on the location of the property, this will take 1.5-3 weeks. Generally speaking, Bluestone can close within a 14-21 day timeframe. On certain loans where third-party reports have already been recently ordered, Bluestone has closed in as soon as 3 business days.

Am I able to offer multiple properties as collateral?

Yes. Bluestone has the ability to cross-collateralize multiple properties to offer additional loan proceeds to borrowers who are short on cash. This allows borrowers to keep extra cash in their pocket while also ensuring that Bluestone maintains its standard loan-to-value (LTV) requirements.

Are there any asset types you do not lend on?

Bluestone does not provide loans on land or ground-up development. Special-use asset types will be reviewed on a case-by-case basis.

What is a fix and flip loan?

A fix and flip loan is typically a 12-month loan designed to help real estate investors acquire, rehab and sell real estate for a profit. These loans cover a portion of the purchase price and most of the renovation costs. Most of the time, these properties are single-family or smaller multi-unit properties in need of rehab. The loan is repaid through the sale of the property when the real estate investor assumes their profit.

What is the “BRRR Method”?

BRRR stands for Buy, Renovate, Rent, Refinance and Repeat. This is a common investment method used by real estate entrepreneurs who maximize their return on investment by limiting their expenses and utilizing real estate appreciation to access cash. These borrowers will leverage lenders like Bluestone to fix up a property and rent it out prior to refinancing through a conventional lender.