Washington Capital Partners works with real estate investors who are exploring financing options for renovation projects across much of the East Coast. Investors interested in learning more about how a fix-and-flip loan application may work are encouraged to review the process and speak directly with Washington Capital Partners to discuss whether their project aligns with available lending options.
Understanding the Initial Prequalification Stage
The process often begins with prequalification. At this stage, an investor may share basic information about the property, the proposed renovation scope, and their background in real estate investing. Lenders that focus on fix and flip loans typically review this early information to determine whether the project fits within their lending profile. Prequalification may help establish whether the loan request is worth pursuing further, without implying approval or final terms.
Submitting a Loan Application
Once an investor moves forward, a formal application is submitted. This step usually involves providing more detailed information about the borrower and the property. Hard money lenders often focus on the asset itself, though borrower details still play a role. Washington Capital Partners generally reviews applications with attention to property value, renovation plans, and the overall structure of the deal.
Documentation That May Be Requested
During the application review, investors are commonly asked to provide documentation. This may include purchase contracts, renovation budgets, contractor estimates, and entity documents if the property is being purchased under an LLC. Financial statements or proof of available funds may also be reviewed to better understand the investor’s ability to manage project-related expenses. The exact documentation required can vary by deal and should be confirmed directly with the lender.
Credit History and Investor Experience
Although traditional lending standards will differ from hard money lending, lenders will often evaluate your credit report and previous experience as part of their decision-making process. With hard money lending, lenders often place greater emphasis on the value of the property and exit strategy than on the credit score alone. Lenders will usually review the experience of an investor as part of their due diligence in determining whether or not an investor is capable of completing renovations on time or at the right cost, to develop a reliable and realistic package. These factors provide context rather than assurance of success.
Evaluating After Repair Value and Contractor Bids
The After Repair Value (ARV) estimated by lenders when they evaluate the project is an important factor in helping their decision-making. Using comparable sales and the proposed scope of renovations to provide ARV estimates, contractor bids outline what needs to be done to complete the work, along with their estimate of the potential cost. Having specific, realistic contractor bids will assist lenders in determining if the projected property's value is consistent with the renovation plan.
Review and Closing Considerations
After documentation and property details are reviewed, the lender completes its evaluation. Some hard money loans are known for shorter timelines compared to traditional financing, though closing speed depends on the completeness of the file and property specifics. Investors should remain responsive during this phase to address any follow-up questions or requests.
Moving Forward With Informed Expectations
Fix and flip loans are often used by investors who value asset-based lending and shorter loan terms. Washington Capital Partners focuses exclusively on hard money lending and works with investors seeking financing for renovation projects across the East Coast. Investors who are considering their next project may choose to contact Washington Capital Partners to discuss their goals, review qualification steps, and determine whether a fix-and-flip loan aligns with their plans.
