Introduction
Boston's housing market presents exceptional opportunities for fix-and-flip investors who can identify undervalued properties, execute strategic renovations, and sell to eager homebuyers in one of the nation's most competitive real estate markets. With median home prices consistently ranking among the highest in the country and a chronic shortage of quality housing inventory, renovated properties in desirable Boston neighborhoods command premium prices and move quickly when properly positioned. However, the fast-paced nature of Boston's market and the unique challenges of renovating older housing stock require financing solutions that combine speed, flexibility, and renovation expertise.
Hard money lending has become the financing backbone for successful fix-and-flip operators throughout Greater Boston. Unlike traditional mortgages designed for owner-occupied homes, hard money fix-and-flip loans are purpose-built for investors who need rapid acquisition financing, construction funds for renovation, and short-term structures that align with project timelines. Our Boston-based hard money lending team works exclusively with real estate investors and understands the nuances of flipping properties in this market, from the permitting challenges of historic districts to the design preferences of Boston homebuyers. Whether you're a seasoned flipper scaling your operation or a new investor completing your first project, we provide the capital and expertise to execute profitable fix-and-flip strategies.
Applications
Fix-and-flip operators utilize hard money financing across the full spectrum of project types found in Boston's diverse housing market. Single-family home flips represent the most common application, encompassing everything from modest cosmetic renovations in suburban communities to extensive gut rehabs of historic properties in Boston's core neighborhoods. Hard money loans fund both the acquisition and renovation of these properties, with loan amounts based on the after-repair value rather than the purchase price, allowing investors to leverage their capital across multiple projects.
Multi-family fix-and-flip projects have gained popularity as Boston's rental market remains exceptionally strong. Investors purchase duplexes, triple-deckers, and small apartment buildings, renovate units to achieve market rents, and either sell to income-focused buyers or refinance and hold as rental properties. Hard money financing accommodates these projects with loan structures that cover acquisition, renovation, and carrying costs during the lease-up period if the investor chooses to hold rather than sell.
Condominium conversion projects present lucrative opportunities in Boston's dense housing market. Investors acquire multi-family buildings or large single-family homes, subdivide them into condominium units, and sell individual units to owner-occupants. These projects require specialized financing that covers not only acquisition and construction but also legal and administrative costs associated with condominium creation. Hard money loans provide the capital and flexibility needed for these complex conversions.
Luxury renovations and high-end flips target Boston's premium neighborhoods where discerning buyers expect exceptional quality and design. Properties in Back Bay, Beacon Hill, South End, and Brookline command prices exceeding $2-3 million when renovated to luxury standards, but require substantial capital for high-end finishes, custom millwork, and premium fixtures. Hard money loans scale to accommodate these larger projects, funding acquisition and construction costs while providing the extended timelines sometimes needed for complex luxury renovations.
Distressed property acquisitions from foreclosure auctions, estate sales, and short sales often require cash offers and rapid closings. Hard money financing enables investors to compete with cash buyers by providing proof of funds letters and closing quickly, typically within 7-10 days. These distressed properties frequently need significant renovation, making the combined acquisition and construction financing provided by hard money loans particularly valuable for maximizing returns on complex projects.
Common Challenges
Fix-and-flip operators in Boston face unique market challenges that hard money lending addresses effectively. The speed required to secure properties in competitive markets like Somerville, Cambridge, and South Boston means investors often need financing commitments within 24-48 hours of identifying opportunities. Traditional financing simply cannot move this quickly, while hard money lenders can provide same-day pre-approvals and close within a week.
Renovation cost overruns and project delays represent significant risks in Boston's market, where older housing stock often conceals structural issues, outdated systems, and hazardous materials like lead paint and asbestos. Hard money lenders experienced with Boston properties anticipate these challenges and structure loans with contingency reserves and flexible timelines that accommodate discovery of unforeseen issues during renovation.
Our Approach
Our approach to fix-and-flip lending is built on deep experience with Boston's renovation market and a commitment to investor success. We evaluate loan applications based primarily on the property's after-repair value and the borrower's renovation experience rather than credit scores or personal income. This asset-based approach enables us to fund deals quickly while maintaining appropriate risk management through conservative loan-to-value ratios.
We offer fix-and-flip loans covering up to 90% of purchase price and 100% of renovation costs, with total project funding up to 75% of after-repair value. Interest rates range from 10% to 13%, terms from 6 to 18 months, and we charge no prepayment penalties so investors retain profits when projects complete ahead of schedule. Our renovation draw process is streamlined to 48-72 hour turnaround, ensuring contractors receive prompt payment and projects stay on track. We also provide free deal analysis and ARV opinions to help investors evaluate opportunities before committing capital.
Related Services
Service Areas
Boston's fix-and-flip market spans neighborhoods at various stages of gentrification and development. We actively lend on renovation projects in Dorchester's diverse neighborhoods, Roxbury's revitalizing corridors, Jamaica Plain's family-friendly streets, and South Boston's rapidly appreciating blocks. Our lending footprint extends to Cambridge's condo market, Somerville's transit-oriented developments, and Brookline's stable residential areas. Each submarket presents different acquisition prices, renovation requirements, and buyer demographics, and our lending team provides market insights to help investors select projects aligned with their capabilities and return targets.
Frequently Asked Questions
How much of the purchase price and renovation costs will you finance for fix-and-flip projects?
We typically finance up to 90% of the purchase price and 100% of renovation costs for fix-and-flip projects, with total loan amounts up to 75% of the after-repair value (ARV). For experienced investors with strong track records, we can sometimes increase leverage to 85% of purchase price. This high leverage allows investors to preserve capital for multiple projects or contingencies while still maintaining equity cushion in each deal.
How quickly can you close fix-and-flip loans in Boston?
We can close fix-and-flip loans in 7 to 10 business days from application, with expedited closings in as little as 5 days for time-sensitive opportunities. We provide same-day pre-approval letters so investors can submit competitive offers immediately upon identifying properties. Our streamlined process focuses on property valuation and borrower experience rather than extensive documentation, enabling the rapid closings essential in Boston's competitive market.
Do you require experience for fix-and-flip loans?
While we prefer borrowers with previous fix-and-flip experience, we do work with first-time investors who have strong contractor relationships and realistic project plans. For inexperienced investors, we may require slightly lower leverage (80% of purchase price) and a more detailed renovation budget and timeline. We also offer guidance on project feasibility and can connect new investors with experienced contractors and project managers in the Boston area.
How does your renovation draw process work?
Our renovation draw process is designed for efficiency to keep your project on schedule. After closing, funds for renovation are held in escrow and released based on completed work. You submit draw requests with photos of completed work and contractor invoices, and we typically process draws within 48-72 hours of request. Initial draws can include materials already purchased, and we can accommodate front-loaded budgets where significant costs occur early in the project.
What happens if my fix-and-flip project takes longer than expected?
We understand that renovation projects often encounter delays, particularly with Boston's older housing stock. If your project extends beyond the original loan term, we offer extension options typically at a modest fee (0.5-1% of loan amount) for additional months as needed. We work with investors to find solutions rather than forcing distressed sales, including refinancing into rental loans if market conditions shift and holding becomes more attractive than selling.