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Small Business Loans

Fix-and-Flip Loans for Commercial Real Estate

Fix-and-flip loans provide financing for purchasing and rehabbing properties quickly. Then the buyer sells (or “flips”) the property to repay the loan balance and make a profit. 

While many people associate flipping with residential homes, it’s also possible to flip commercial properties, such as offices, retail shops, warehouses, and industrial facilities.

To finance these projects, you must identify lenders offering commercial fix-and-flip loans. We have researched five lenders who offer fix-and-flip financing for commercial properties. You’ll also learn about the pros and cons of this type of financing and what alternatives to consider. 

Where to get commercial fix-and-flip loans

Deciding where to secure your financing is important. To help you navigate the vast options, we’ve reviewed five of the leading fix-and-flip lenders that excel in different areas. 

Our evaluations are based on objective factors such as market reputation, customer service, and product offerings. Keep reading for insights into the best companies for borrower incentives, lines of credit, customization, fast funding, and businesses in growth stages.

LenderBiggest benefits
New SilverQuick funding and competitive rates
BlueVineUser-friendly and flexible financing
KapitusCompetitive rates and terms
OnDeckShort-term loans and streamlined application
Funding CircleTailored loans, competitive rates, focus on long-term solutions

New Silver: Best for borrower incentives

  • Offers bonus incentives for repeat borrowers
  • Fast, hassle-free online application
  • Specialized expertise in fix-and-flip projects

New Silver makes its mark with impressive borrower incentives, leveraging its knowledge and experience in the fix-and-flip industry. It offers discounts for return borrowers, facilitating a mutually beneficial relationship.

Its smooth online application process eliminates unnecessary delays, pushing your project ahead of schedule. It is a strong choice for those looking for lucrative incentives.

Bluevine: Best for fix-and-flip line of credit

  • Fast credit line approval process
  • High maximum credit limits
  • Flexible draw periods and repayment schedules

Bluevine offers business lines of credit with quick approvals and generous credit limits that meet your project’s financial demands. It offers flexible draw periods and repayment schedules, making it adaptable to your unique needs.

With its emphasis on flexibility and speed, BlueVine is especially accommodating for business owners managing multiple commercial real estate projects.

Kapitus: Best for customization

  • Wide array of loan products for customization
  • Personalized repayment plans
  • Comprehensive customer support

Kapitus excels in its loan product variety, providing borrowers with tailored financing suited to individual business needs. Among its products, Kapitus offers business term loans, lines of credit, SBA loans, and more.

It values borrower satisfaction, offering personalized repayment plans and excellent customer support. Customization being its forte, Kapitus is an excellent choice for business owners who value individualized loan structures and terms.

OnDeck: Best for fast funding

  • Immediate funding upon approval
  • Hassle-free online application
  • Transparent loan terms and fee structure

For those in a hurry, OnDeck might be ideal. It offers business lines of credit and term loans, and is recognized for its speedy disbursal of funds, it ensures that your project moves forward without financial hiccups.

Its simplified loan terms and transparency help avoid any unexpected surprises. If speed is your priority, consider OnDeck for your funding needs.

Funding Circle: Best for growing businesses

  • Suitable for large-scale projects
  • Low interest rates for qualified businesses
  • Long loan terms available

Funding Circle is well-suited for growing businesses thanks to its accommodating terms for large-scale projects. It offers business term loans, SBA loans, and business lines of credit.

Its low interest rates and longer loan term options offer substantial financial breathing space for expanding businesses.

Ask the expert

Erin Kinkade


Commercial real estate loans will require more work to prepare, research, and develop a business plan. The lender may also consider the area that the property is in and future issues such as rezoning, city property, walking/driving access to the property, etc. could affect your loan.

What do you need to know about fix-and-flip loans for commercial real estate? 

Commercial and residential property flipping are very different processes. Before exploring a commercial fix-and-flip loan, understand the market you plan to buy into. While residential flippers generally benefit from a housing inventory shortage, that trend doesn’t hold for all types of commercial properties. 

Office demand, for instance, is low since many businesses switched to remote work during the pandemic. Meanwhile, rent prices for industrial sites, warehouses, and retail have increased. 

Commercial fix-and-flip loans are best for seasoned flippers who understand the life cycle of commercial properties. The sales timeline usually takes several months, which is much slower than the quick turnaround found with residential flips that can bring in a contract within days.   

Also, consider the benefits of refinancing your fix-and-flip loan to hold the property as a rental when you’re done. Then, you can bring in immediate cash flow without worrying about a slower timeline for selling the property. 

Pros and cons of commercial fix-and-flip loans

Here are some benefits and drawbacks when considering a fix-and-flip loan for your next commercial investment property.


  • Faster funding

    fix-and-flip loans come with quicker turnaround times compared to commercial real estate loans from traditional banks. Instead of waiting for months, you could close a deal within weeks. 

  • Flexible eligibility requirements

    Lenders typically focus on the property and financial projections more than credit requirements. 

  • Repair costs financed

    Instead of just borrowing funds to cover the purchase price of your property, a commercial fix-and-flip loan also includes funds to draw on to pay contractors. That way you don’t have to find and apply for two separate loans. 


  • Higher costs

    Both interest rates and origination fees may be more expensive with a commercial fix-and-flip loan than other options. 

  • Down payment required

    Even with financing to put towards most of your costs, you’ll still need cash to cover a down payment on the property and closing costs. 

  • Previous transaction history is important

    Many (although not all) lenders look at investment flips you’ve completed in the past as part of the application process.

Ask the expert

Erin Kinkade


Prepare a plan B and plan C if your original business plan doesn’t come to fruition. And, always network with those in the business and establish a consulting team, such as a CPA, attorney, and financial professional. Possibly consider establishing an advisory board as well.

How to get a fix-and-flip loan for commercial real estate 

Here’s a general idea of the process for getting a commercial fix-and-flip loan, along with common mistakes to avoid.

Review properties

Grow your local network of real estate professionals and building owners to get early leads on buildings in your area of expertise. You can also reach out directly to property owners to help them unload their distressed properties. 

Create an improvement plan

Next, plan the improvements you plan to make before selling. Calculate the future cap rate (future property value divided by potential net operating income) to complete the right amount of renovations for the market. 

Get fix-and-flip loan quotes

Pick a few lenders who offer commercial fix-and-flip loans that meet your eligibility. Oftentimes, you can fill out an introductory form and talk to a loan officer to get quotes before choosing an offer.  

Complete a full application

Once you pick a lender, you’ll need to submit documentation, which may include the following:

  • Bank and asset statements 
  • Proof of mortgage reserves and down payment 
  • Previous experience with flipping real estate
  • Property details
  • Scope of work and estimated budget

Receive funding

Most fix-and-flip loans can close within weeks or even less. You’ll start making interest-only payments and also receive access to draw on the construction portion of the loan. 

Some common pitfalls could result in a rejected application. One is not having enough cash reserves to cover several months’ worth of mortgage payments. 

fix-and-flip loans also aren’t usually available for personal use. Even if it’s just you working on the property, you may be required to create an LLC to separate your personal and professional liability. 

How can market analysis help you select commercial properties for flipping?

The first factor to consider in a commercial real estate market analysis is the current market for the property type. As mentioned, offices, retail locations, and warehouses are all subject to different economic conditions.

Also, look at relevant local trends, such as job growth and transportation investments. They can contribute to the future value of a commercial space. 

Finally, learn how to calculate commercial real estate values. Cap rate, rental projections, and cash-on-cash return are all estimates to consider before you buy a property to flip. 

Alternatives to fix-and-flip loans for commercial real estate 

Check out some alternative financing options for flipping commercial real estate properties. 

Conventional commercial real estate loan 

You can apply for a conventional commercial real estate loan with a traditional bank. The application and funding processes are longer compared to a fix-and-flip loan.

Depending on the bank’s requirements, the property may need to be at least partially owner-occupied. That means you may need to hold the property for a while rather than flipping it immediately. 

Conventional loan terms usually last between five and 20 years.

Commercial bridge loan

A commercial bridge loan helps you finance a portion of the property’s loan-to-value to purchase it. The downside is that it doesn’t cover renovation costs. However, it is a type of short-term financing that doesn’t require you to occupy or hold the commercial property for any specific amount of time. 

Hard money loans

Hard money loans are similar to fix-and-flip loans but with more flexible eligibility criteria. It’s

faster and easier financing, but it comes with a price. Interest rates and fees are high compared to other options.   

Loan amounts are smaller than a fix-and-flip loan because the property itself is used as collateral. Funding is based on a percentage of the after-repair value.