What is a fix and flip loan?

A fix and flip loan is short-term financing used by real estate investors to purchase and renovate properties for resale. These loans typically feature interest-only payments and terms of 12-18 months.

What does LTC mean in real estate lending?

LTC stands for Loan-to-Cost. It represents the loan amount as a percentage of the total project cost (purchase price plus rehab budget). In this case study, the 85% LTC means the lender financed 85% of the total $219,800 project cost.

What does LTARV mean?

LTARV stands for Loan-to-After Repair Value. It measures the loan amount against the projected value of the property after renovations are complete. This case study features a 66.73% LTARV based on a $280,000 ARV.

Can limited experience investors get fix and flip loans?

Yes. American Heritage Lending provides fix and flip financing to investors with limited experience. This Bakersfield case study demonstrates a 12-month interest-only loan at 85% LTC for a limited experience borrower.

Recently Funded Fix & Flip Loan In Bakersfield, California.

Loan Scenario:

This fix and flip loan supports the renovation of a single-family home in Bakersfield, California. The limited experience investor purchased the property for $185,000 with a $34,800 rehab budget. American Heritage Lending provided $186,830 in financing, structured as a 12-month interest-only True Zero Point Loan, resulting in 85.00% Loan-to-Cost and 66.73% Loan-to-ARV. The projected After Repair Value is $280,000.

The True Zero Point structure allowed the borrower to preserve capital for the renovation without paying upfront discount points, an important consideration for investors managing multiple budget line items across a compliance-focused project.

The scope includes roof repairs, exterior paint, detached garage repairs, new flooring and carpet, landscaping, and demolition of two illegal attached storage units to resolve compliance issues.

Bakersfield’s affordable housing market continues to see demand for updated, move-in-ready homes. This transaction shows how American Heritage Lending supports limited experience investors taking on practical renovations with regulatory complexity, while keeping upfront costs low through zero-point financing.

Key Deal Points

Address	Bakersfield, CA
Loan Type	Fix & Flip
Borrower Profile	Limited Experience
Property Type	Single Family Detached
Purchase Price	$185,000
Rehab Budget	$34,800
After Repair Value	$280,000
Loan Amount	$186,830
Loan To Cost (LTC)	85.00%
Loan To ARV (LTARV)	66.73%
Loan Structure	True Zero Point Loan