A strong fix and flip deal is one where the numbers make sense, the renovation plan is achievable, and you have enough room in the budget for things that might not go as expected. Lenders are not looking for perfection. They simply want to see a project with clear logic, realistic assumptions, and a path to a profitable exit.
A Clear, Supportable ARV (After-Repair Value) #
Good deals start with an ARV you can confidently back up. This includes:
- Recent comparable sales that actually match the property
- Renovation plans that fit the neighborhood
- A realistic resale price based on current market data
A believable ARV gives both you and the lender confidence in the project.
A Renovation Budget That Makes Sense #
Stronger deals have budgets that feel complete and well thought out. Lenders look for:
- A detailed line-item scope of work
- Contractor input or verified estimates
- Coverage for both visible and likely hidden repairs
- Costs that match the level of work needed
Overly optimistic budgets are one of the most common reasons deals fall apart.
Healthy Profit Margin and Cushion #
A solid fix and flip deal leaves room for everything involved, including:
- Renovation costs
- Holding and carrying costs
- Closing costs
- Financing costs
- Actual profit
Rules like the 70 percent guideline can be helpful, but the priority is ensuring the numbers support both risk and reward.
A Manageable Scope of Work #
Deals do not need to be complicated to be profitable. In many cases, the best ones involve:
- Cosmetic or moderate updates
- Predictable timelines
- Minimal structural surprises
Simple projects almost always run smoother and are easier to manage.
A Timeline You Can Realistically Meet #
A strong deal is built around a timeline that makes sense. Lenders look for:
- Realistic renovation durations
- Awareness of any local permit or inspection requirements
- Plans that do not rely on everything going perfectly
A realistic timeline is more valuable than an aggressively fast one.
A Clear Exit Strategy #
Good fix and flip deals have a defined plan for how the property will be sold. Investors should know:
- How and where the property will be listed
- Expected days on market
- The pricing strategy
- Backup options if the market slows or timing shifts
A clear exit reduces uncertainty for both the investor and the lender.
Reliable Contractor Support #
For newer investors, a dependable contractor team adds a lot of strength to the deal. Lenders appreciate when:
- A licensed contractor or general contractor is involved
- Bids are clear and detailed
- The contractor has experience with similar projects
- Communication is consistent and proactive
The right contractor can make the entire project run more smoothly.
Summary #
A strong fix and flip deal combines a realistic ARV, a detailed renovation plan, a solid profit margin, and an exit strategy you can actually execute. When the numbers make sense and the project is manageable, lenders feel more comfortable and the process becomes smoother from start to finish.