Short-term financing for commercial property renovation and resale. Fast closings, renovation draws, and flexible exit strategies for experienced CRE investors.

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80–90%

Max LTC

12–36 mo

Loan Term

8–13%

Rate Range

7–21 days

Time to Close

HOW VALUE-ADD LOANS WORK

Acquire, Renovate, and Exit

Fix-and-flip and value-add loans are short-term, asset-based financing designed for investors who buy underperforming commercial properties, execute renovation or repositioning plans, and exit through sale or refinance at a higher valuation. The loan covers both acquisition and renovation costs, with renovation funds disbursed through a draw schedule tied to project milestones.

Unlike residential fix-and-flip, commercial value-add deals involve larger capital requirements, longer renovation timelines, and more complex underwriting. Lenders evaluate the after-renovation value (ARV), your renovation budget, and your track record as an investor or developer.

Acquisition + Renovation

Single loan covers property purchase and renovation budget. Draw schedule releases renovation funds as work is completed and inspected.

Asset-Based Underwriting

Approval based on property value and deal economics rather than personal income. ARV (after-renovation value) drives loan sizing.

Fast Closing Speed

Close in 7–21 days for experienced borrowers. Speed allows you to compete with cash buyers on off-market and distressed opportunities.

Interest-Only Payments

Pay interest only during the renovation period. No amortization means lower carrying costs while the property is non-income-producing.

Multiple Exit Strategies

Sell at ARV for profit, refinance into permanent debt for long-term hold, or 1031 exchange into the next value-add opportunity.

Extension Options

Most value-add loans include 1–2 six-month extension options if the renovation timeline runs longer than planned. Fee-based, pre-negotiated.

LOAN COMPARISON

Value-Add vs. Bridge vs. Hard Money

Short-term CRE financing comes in several forms. Here is how value-add loans compare to bridge and hard money alternatives.

Value-Add / Flip

Bridge Loan

Primary Purpose

Renovate + resell

Acquire + stabilize

Renovation Draws

Yes, structured

Sometimes

Rate Range

8 – 13%

7 – 12%

Max Leverage

80 – 90% LTC

65 – 80% LTV

Term

12 – 36 months

Closing Speed

7 – 21 days

14 – 30 days

Exit Strategy

Sale at ARV

Perm refi or sale

Best For

Heavy renovation

Transitional assets

FREQUENTLY ASKED QUESTIONS

Fix & Flip Loan FAQ

What types of commercial properties work for fix-and-flip?

The most common: small multifamily (5–20 units), retail strip centers, mixed-use buildings, small office buildings, and industrial/flex space. Properties with clear value-add through renovation, better management, or lease-up tend to attract the most competitive financing.

How much experience do I need?

Most lenders want at least 2–3 completed commercial projects. Some will consider first-time commercial investors with strong residential flip track records or experienced partners. Your renovation budget, contractor relationships, and exit plan matter as much as project count.

How are renovation funds disbursed?

Through a draw schedule tied to project milestones. You complete a phase of work, request an inspection, and the lender releases funds for the completed work. This protects both parties and ensures renovation proceeds on plan.

What is the difference between LTC and LTV in value-add?

LTC (loan-to-cost) measures the loan against your total project cost (purchase + renovation). LTV (loan-to-value) measures against current or after-renovation value. Value-add lenders typically size loans based on LTC (80–90%) with an LTV cap based on ARV (65–75%).

What happens if the renovation takes longer than expected?

Most loans include 1–2 pre-negotiated extension options of 6 months each, with a fee (typically 0.5–1 point per extension). This is why negotiating extension terms upfront is critical. Without extensions, you risk default or a costly loan payoff.

Can I refinance into permanent debt instead of selling?

Absolutely. Many value-add investors execute a BRRRR-style strategy (buy, renovate, rent, refinance, repeat) on commercial properties. Once stabilized, you refinance into permanent debt, pull out your capital, and reinvest in the next deal.

Have a Value-Add Deal in Mind?

Our advisors connect you with value-add and fix-and-flip lenders who understand commercial renovation timelines and draw schedules.

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Our 6 commitments to every borrower

Other lenders make promises.
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Every commitment below exists because real borrowers got burned without it. We built BestLoanUSA to be the lender we wished existed.

Hidden Fees

No surprise charges at closing. Every cost disclosed upfront in writing before you commit.

24hr

Pre-Qualification

Know where you stand within one business day — not weeks or months of silence.

Dedicated Advisor

One point of contact from application to closing. No handoffs, no ghosting, no runaround.

Day 1

Complete Checklist

Full document requirements on your first call. No mid-process surprises asking for "one more thing."

100%

Upfront Pricing

The rate and terms you're quoted are the rate and terms you close on. Period.

5 min

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Why borrowers switch to us

Five things your last lender should have done.

Borrowers don't come to us because lending is complicated. They come because someone else made it harder than it needed to be.

1
48 hours to clarity. You'll know exactly where you stand — not wonder for months.
2
Every dollar in writing. The rate and fees you see on day one are the ones you sign at closing.
3
One advisor, start to finish. No handoffs. No vanishing acts. One person who knows your deal.
4
Full checklist, first call. Every document listed upfront. No mid-process surprises.
5
We earn when you close. No upfront fees. Our only incentive is your funded deal.

“I’ve spent over a decade watching good borrowers lose money to a broken process. BestLoanUSA exists so that stops happening.”

Jason Kim

Managing Director, Commercial Lending

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