I’m Travis Buis, a loan officer with Elite Home Lending in Myrtle Beach. Flips happen here, mostly inland, and a fix and flip loan in Myrtle Beach runs on a very different clock from a normal mortgage.

What is a fix and flip loan?

It’s short-term financing for buying a property, fixing it up, and then selling or refinancing it. It covers the purchase and, usually, the renovation budget.

Because it’s built to be paid off quickly, it costs more than a standard mortgage. The lender cares most about the property and your plan for getting out.

Where does the work happen around here?

Inland, mostly. Conway, Loris, Aynor and the older parts of Socastee hold the aging single-family homes where the numbers can work.

Beachfront rarely works as a flip. You’re paying for the location rather than the condition, so there’s less value left to create.

Condos come with their own problem. Renovating one unit doesn’t fix the building’s finances. A project with thin reserves or open litigation can be hard for your buyer to finance, even after your work looks great.

Who qualifies for a fix and flip loan?

• The deal itself. The lender looks at the purchase price, the repair budget and the after-repair value, meaning what the home should be worth once it’s done.
• Your experience. Past projects help. First-timers can still qualify, but expect tighter terms.
• Cash in the deal. You’ll bring a down payment, plus money to carry the project until the draws come through.
• Your credit, which affects pricing.

How do the draws work?

The repair money is held back and released in stages as the work gets done. An inspection usually confirms each phase first. So you pay for a phase, then get reimbursed, rather than receiving the whole budget at closing.

That’s what catches first-time flippers. Plan for carrying the work, not just the purchase.

What does your exit plan have to show?

Something real. These loans are short, so the lender wants to see exactly how it gets repaid. That might be a sale, or a refinance into longer-term financing. Saying I will sell it fast is not a plan.

Many investors also use a rule of thumb called the 70 percent rule. It says to pay no more than 70 percent of the after-repair value, minus the repair cost. It’s a starting point for sizing a deal, not a lender requirement.

If you’d rather hold the property as a rental, say so up front. A DSCR loan qualifies on the rent and is usually the cleaner exit. And if you’re buying a home to live in that needs work, a rehab loan fits better.

Have a property in mind? Get pre-qualified and we’ll walk the numbers, including the carrying costs, before you commit.

Fix and flip loan FAQ

What is a fix and flip loan?

Short-term financing to buy a property, renovate it and then sell or refinance it. It usually covers the purchase and the repair budget.

Can a first-time flipper get a fix and flip loan?

Often, yes, but expect tighter terms than an experienced investor would get. A solid budget and exit plan help a lot.

How are the repair funds paid out?

In stages as the work gets done, usually after an inspection at each phase. You cover each phase first and then get reimbursed.

What is the 70 percent rule?

A rule of thumb investors use to size deals: pay no more than 70 percent of the after-repair value, minus repair costs. It’s a guide, not a lender requirement.