What does a fix and flip loan in Glendale cost?
We do not quote numbers on this page, because pricing depends on the lender, the property and you. What we can tell you is which costs to ask about, so you can compare offers fairly. A loan that looks cheap on one line can be expensive once every line is counted.
- Interest rate — ask whether it is fixed for the term and how interest is calculated, since many short-term loans charge interest only on the amount drawn.
- Points — an upfront charge expressed as a percentage of the loan; ask whether it applies to the full loan or only the purchase portion.
- Lender and processing fees — underwriting, document and wire fees add up, so ask for them itemized.
- Draw and inspection fees — if the lender verifies work before releasing money, find out who pays and how much per draw.
- Extension and prepayment terms — check for a minimum interest period or a charge for paying off early.
Add your own costs on top: insurance, property taxes, utilities and holding costs while the house is being worked on or sits on the market.
How is the rehab money released?
With many rehab loans, the renovation money is not handed over at closing. It is held back and released in stages, called draws, as work is completed. You submit a scope of work and a line-item budget before closing, the loan funds the purchase with the rehab portion set aside, and after each phase you request a draw that the lender verifies before paying.
The practical consequence is cash flow: contractors want deposits, and draws reimburse you after the work is done, so plan to carry some of the cost between draws. A detailed budget with a contingency line is something lenders look for, and it protects you too. Draw rules vary by lender, so ask early how often you can request them.
How long does a fix and flip loan take to fund?
We cannot promise a closing date, and anyone who does before reviewing your file is guessing. Timing depends on how complete your package is, the property's condition, title and appraisal scheduling, and the lender's own process. Have the purchase contract, scope of work, budget, proof of funds for your down payment and reserves, and a summary of your experience ready.
Terms on these loans are usually measured in months rather than years. Build your renovation schedule, your listing date and a cushion for permit delays inside that term, not up against the end of it.
How do I repay a rehab loan — sell or refinance?
Every flip loan needs an exit. The first is to sell: you list the finished home and repay the loan from the proceeds, and the risk is time on market and price, because holding costs keep running. The second is to refinance and hold: a longer-term loan pays off the short-term one, which usually depends on the finished value, the property's income and your own qualifications. For a rental you plan to keep, see DSCR loans.
What should I settle before I make an offer?
Settle four questions in writing before you commit: your all-in cost, how rehab funds are released and how long a draw takes, what happens if the project runs past the loan term, and whether a refinance still works as your backup exit if the market slows. Answering them early makes the rest of the project easier to manage.
- What is my all-in cost, including points, fees, draw fees and holding costs?
- How are rehab funds released, and how long does a draw take?
- What happens if the project runs past the loan term?
- If the market slows, will a refinance still work as my backup exit?
Tom Tumyan, our owner and Senior Loan Officer, has been a licensed loan officer for 25+ years, with experience in commercial and residential real estate. Our office is at 611 E Glenoaks Blvd in Glendale, so local investors can sit down with us in person.
