Fix and Flip Loans in Colorado
Cederholm Mortgage Advisors helps Colorado real estate investors compare fix and flip loans for purchasing and renovating investment properties. We review the acquisition budget, renovation financing, draw schedule, carrying costs, and sale or refinance plan together. Bring the property address, purchase price, repair budget, and estimated timeline so we can discuss financing that fits the project.
Planning to keep the property as a rental? Compare investment property loans as part of your exit strategy; future financing requires a separate review.
Residential construction photograph by D Goug. Resized. Source · Pexels License. Illustrative photograph.
Photograph by Max Vakhtbovych; resized. Source · Pexels License. Illustrative photograph.
How fix and flip loans support your project
The purchase price is only the beginning. Your financing also needs to account for cash to start repairs, carrying costs and how you will repay the loan. We help you compare acquisition and renovation funding, understand the trade-offs, and put the funding schedule alongside your contractor’s schedule before you commit.
Fix-and-flip financing is generally short-term, business-purpose financing for an investment property. It differs from a mortgage for the home you intend to live in. Property condition, proposed improvements, credit, liquidity and experience matter. First project or experienced investor, bring our team the address, proposed price and repair budget so we can review the whole deal.
Acquisition
Review purchase costs, the property condition and the work needed. Start your financing plan →
Renovation
Match scope, draws and timeline to a realistic budget. Start your financing plan →
Exit plan
Plan sale or refinance without assuming either is guaranteed. Start your financing plan →
Smart home financing starts with strategy
Key financial metrics & terms
- ARV — After-repair value
- Estimated market value after the planned renovations. Support it with comparable renovated sales and an appropriate valuation. ARV is an estimate, not a guaranteed sale price.
- LTC — Loan-to-cost
- Total committed loan divided by eligible purchase and renovation costs. Ask which costs count: financing fees, carrying costs and contingencies may be excluded.
- LTV — Loan-to-value
- Loan amount compared with the property’s current as-is value. Compare the purchase advance with as-is value, and separately compare the full commitment with ARV.
- Points
- Upfront fees expressed as a percentage of the loan amount. One point equals 1%; two points on $300,000 equal $6,000. Confirm the calculation base and compare points alongside interest, document fees, inspections and extension costs.
- Draw schedule & renovation holdback
- Repair funds reserved for approved work and released through draws. Reimbursement can require you to pay for labor and materials first, document completed work and pass an inspection. Verify timing, fees, lien waivers and any funds retained until completion.
- Interest-only payments
- Payments covering interest without reducing principal. Ask whether interest applies to the funded balance or the full commitment, including undisbursed repairs.
- Balloon payment & maturity
- The remaining principal and amounts owed become due at contractual maturity. A sale can repay the loan earlier; a delayed sale does not automatically move the due date.
Fix and flip financing: loan terms and costs
The term sheet should fit your project. These are items to compare and verify, rather than universal rates or approval thresholds.
| Financing item | What to compare |
|---|---|
| Loan duration | Match maturity to renovation, marketing and closing time, with a buffer. The example below uses 12 months; a 6–24 month range is not a universal program standard. |
| Rate & payments | Request project-specific pricing. Compare fixed or variable interest, the balance charged, minimum interest and early-payoff rules. The example uses 12%, not an advertised rate. |
| Down payment & leverage | Compare purchase advance, eligible LTC and ARV caps together. Cash contribution is not necessarily a flat 10–20% of the purchase price. |
| Repair funding | Some structures may fund the full approved repair budget, subject to total leverage limits. Confirm draws, inspections and excluded work. |
| Credit & experience | Credit, completed projects and project complexity affect options. A 680 score is not a universal minimum or a promise of optimal pricing. |
| Cash reserves | Include cash to close, repair funds before reimbursement, carrying costs and contingency. A 4–6 month cushion is a planning target, not a universal lender rule. |
| Fees & guarantees | Review points, valuation, legal/document charges, draw fees, extensions and personal guarantees in writing. |
See how the financing works
Illustrative project — not a borrower story, loan offer or profit forecast. Purchase for $300,000, budget $60,000 for repairs and estimate a $450,000 resale value. Assume a $270,000 purchase advance plus a $60,000 repair holdback: a $330,000 commitment. That is 90% of purchase price, 91.7% LTC on $360,000 of eligible costs and 73.3% of ARV. As-is LTV is 90% only if the as-is valuation is also $300,000.
Assume a 12-month interest-only loan at 12% with two points ($6,600). All repairs are drawn at the start of month four, interest applies only to funded balances and the base-plan sale closes at the end of month six. Real draws, fees and day-count calculations will differ. Explore the tabs below.
Estimated project margin before taxes: $35,400.
- Sale proceeds: $450,000
- Purchase + renovation: $360,000
- Interest: $18,000 ($2,700 × 3 months + $3,300 × 3 months)
- Origination: $6,600; other financing, closing and draw costs assumed: $3,000
- Taxes, insurance, utilities and carrying costs assumed: $5,000
- Selling costs assumed: $27,000 (6% of sale price)
- Total modeled costs: $419,600
The $330,000 funded principal must be paid off at sale. It is not subtracted a second time from profit because purchase and renovation costs are already included above. No income taxes or separate compensation for your own labor are included.
Estimated project loss before taxes: $12,650.
Assume repairs cost $9,000 more, the sale price falls 5% to $427,500 and closing takes three extra months. Add $9,900 of interest on the $330,000 funded balance and $3,000 of carrying costs. Selling costs fall to $25,650.
Total modeled costs become $440,150, producing a $12,650 loss. The extra repairs come from your cash; additional financing is not assumed. This remains within the assumed 12-month term, so no extension fee is included.
A reasonable base margin can disappear when cost, timing and resale assumptions move together. Test all three before committing.
Financed repairs still require liquidity. The purchase equity contribution is $30,000. Assumed points and other financing/closing costs add $9,600. If a $15,000 work phase must be paid before reimbursement, you need that temporary cash too, plus carrying costs and contingency.
Maximum allowable offer: target resale proceeds − selling costs − repairs − financing costs − carrying costs − contingency − target profit.
Using $450,000 resale, $27,000 selling costs, $60,000 repairs, $27,600 financing/closing costs, $5,000 carrying costs, a $6,000 contingency and $30,000 target profit produces a $294,400 preliminary offer ceiling. Recalculate financing costs as price changes. This is a budgeting framework, not a property valuation.
Protect cash flow between closing and the final draw
Ask for draw rules before signing. Who pays the contractor initially? What documentation and inspections are required? Are materials on site eligible, or only installed work? What happens when a change order exceeds the approved scope? The financing needs to work with how your contractor expects to be paid.
Allow time for permits, inspections, ordering lead times and marketing. Confirm appropriate renovation insurance and whether coverage changes as the property becomes vacant or construction begins. Keep taxes, insurance and required payments current.
We compare financing structure and costs so a low headline rate does not distract from an expensive draw process, too little cash at closing or a maturity date the project cannot realistically meet.
Your action plan for a stronger project
- Run the numbers. Support ARV with comparable sales, prepare a line-item repair budget and include contingency, selling, financing and carrying costs in your offer ceiling.
- Prepare the project file. Bring the address, contract or proposed price, scope of work, bids, timeline, permit requirements, bank statements and past project details. For an LLC, prepare entity and ownership documents. Entity requirements and personal guarantees vary.
- Review financing before committing. We can compare the purchase advance, repair holdback, cash required and exit conditions. Ask our team about a project-specific prequalification or financing letter. It is not cash proof of funds or final loan approval.
- Coordinate repairs and draws. Agree on phases, track invoices and document completed work. Plan for inspection and reimbursement delays. Obtain approval for changes before assuming they will be funded.
- Manage the exit against maturity. Leave time for listing, buyer financing and closing. For a rental refinance backup, review rent, value, seasoning, property condition and qualification early. Extensions and refinancing require approval.
Tell us about your fix-and-flip project: is this your first project, or do you have completed renovations? Do you have a target property and repair budget? We can use those details to plan your next step.
If a rental exit is possible, compare our Investment Property Loans guide. The FDIC’s lending overview explains acquisition, development, construction and income-property financing; your project still needs its own review.
Explore Mortgage Calculators
Compare purchase, refinance and affordability scenarios, then let our team help turn the estimate into a financing plan.
Fix and flip loans: frequently asked questions
Some programs consider first-time investors; others require completed projects. We review the scope, contractor, cash reserves and property before identifying a path. A documented, manageable project gives us a stronger starting point.
Plan for equity, closing costs, points, carrying costs and contingency, plus cash before reimbursed draws. We separate the purchase advance from the repair holdback so you can see the timing of each dollar.
Purchase-advance, LTC and ARV limits may apply together; the most restrictive limit can control funding. We compare your proposed loan with eligible costs and valuation rather than assuming an advertised maximum applies.
Interest and carrying costs continue while maturity stays in place. Ask our team to review extension rules, fees and a backup exit before closing. Extensions are not automatic, and delays can eliminate the projected margin.
Possibly, if a new rental loan meets its own value, rent, borrower, condition and seasoning requirements. We can evaluate this early, but project financing does not guarantee a refinance. Bring us expected rent and expenses so we can review the backup plan.
What our clients say
Paul and his team helped me with a very complicated transaction for a cash out mortgage. I would highly recommend him.
Paul was great. He helped us understand our loan better and put our needs first. I’d strongly recommend his services. Throughout our home buying process, Paul Cederholm demonstrated the highest level of professionalism throughout our home loan process, an amazing ability to explain complex mortgage terms in simple language and a willingness to work evenings and weekends to meet our closing deadline. We got our home purchase loan in Chicago thanks to Paul Cederholm. I would absolutely recommend Paul Cederholm for your home loan because I would recommend Paul. You can trust him and he is very informative. We can't recommend Paul Cederholm enough for your home financing needs.
My overall experience working with Paul was fantastic! All his help made the whole process seem easy. Throughout our home buying process, Paul Cederholm demonstrated a talent for making the mortgage process seamless and stress-free, truly professional lending services that exceeded our expectations and a knack for shopping rates and locking in an amazing deal for us. He is humble and easy-going, which made us feel at ease. I would absolutely recommend Paul Cederholm for your home loan because paul is a truly amazing advisor: el mejor! Without his help, our dream of owning our first home would not have been possible. After our introductory call ended, my husband and I looked at each other and said, "He is the one!" We were absolutely right.
Paul exceeded our expectations by offering excellent advice and answering our questions before we even had to ask them (mind reader!). Paul always had our best interests at heart, and his dedication and passion showed in every conversation. We are thankful to have worked with someone trustworthy and honest; someone who went above and beyond for us.
Thank you, Paul, for taking all of our doubts and worries away.
Thank you for cheering us on!
We absolutely recommend you and your team to anyone looking for the best mortgage advisor. We can't recommend Paul Cederholm enough for your home financing needs.
Exceptional experience with Paul and his team! We knew we wanted to work with Paul not long into our introductory call. He put us at ease as he explained all the details of what it would take to get into our first home. Numbers are scary when it comes to such a large purchase, but he walked us through the documents in a way that was easy to comprehend. He made sure we understood the information and answered all the questions we had before proceeding to the next task. He was always available for a call, through text, and email. Never once did we feel uncomfortable or like we were not being heard and understood. We got the best rate available to us based on our information and also helped us get a rate buy-down! Thank you, Paul and your team, for everything you did. We look forward to working with you again should the time come to refinance or get into a different home. Paul Cederholm brought impressive expertise across mortgage products that helped us find the perfect fit, incredible dedication to finding us the best mortgage rate and a willingness to work evenings and weekends to meet our closing deadline. I'd tell anyone looking for a home loan to call Paul Cederholm — highly recommend Paul and his team as we felt comfortable, understood, and empowered throughout the entire process!. I would highly recommend Paul Cederholm — truly an exceptional mortgage professional.
(Translated by Google) Excellent service from Cederholm.
(Original)
Excelente atendimento de Cederholm.
Working with Paul and his team was an absolute dream! We had a particularly complex transaction, Paul made navigating feel easy and less stressful.
Paul and his team were absolutely amazing! Insanely fast response time to any question I had and amazing explanations throughout the whole process. I can’t imagine using another broker ever again!
If you are looking for a mortgage broker for your next home purchase, I highly recommend Paul Cederholm and his team at Cederholm Mortgage Advisors 🏡.
Paul helped me plan the financing for my new home, and I am so grateful for his guidance throughout the process. At the beginning, I felt nervous because the home buying process can feel very intimidating. With Paul’s care, patience, and expertise, I grew into a confident home buyer by the time we reached closing 🌿.
Paul was always available to answer my questions and explained everything in a clear, supportive, and non-intimidating way. He stayed one step ahead throughout the loan process and helped ensure my loan approval moved along quickly and smoothly.
Paul also has a wonderful team. Their attention to detail and clear communication helped me feel supported and never overwhelmed during the process 🌸.
I truly loved working with Paul. He was wonderful to have by my side during such an important step in my life. If you are looking for a knowledgeable and caring mortgage advisor who will guide you every step of the way, I wholeheartedly recommend Paul Cederholm and his team.
Buying my first house was an exceptional experience because Paul was tremendously helpful, and communicative. I can’t thank him and his team enough and highly recommend!!!
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Recently I had the pleasure of working with Paul and I can confidently say that my experience was nothing short of exceptional.
Trust is a crucial element when it comes to financial decisions, He took the time to understand my unique needs and goals, ensuring that every step of the process was transparent and tailored specifically to me. I never felt rushed or pressured; instead, I felt supported and empowered to make informed choices. Whether it was providing insights into market trends or introducing me to other professionals who could assist with my financial journey, Paul went above and beyond to ensure I had access to the best tools and information available.
I can say that Paul genuinely cares about his clients and strives to build lasting relationships. I can't recommend him enough for anyone looking for a mortgage broker who feels like family, fosters trust, and provides invaluable resources. Thank you, Paul, for making this experience so positive and rewarding!
We started the process in June and closed in November because we were indecisive and Paul was patient, he heard our request and never pushed us to buy until we were comfortable with our purchase. Luckily, he waited on us and we closed on the perfect home. We loved his 24/7 availability for us even on his vacation days. Thanks for an amazing work !
Paul is a great lender, my clients love working with him. He is very detailed oriented, organized, responsive. Always trying to find the best program/rates for everyone. I truly recommend his services.
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You and your team were very helpful throughout the entire process! I could always rely on you to help answer questions and be available at all times. I would highly recommend!
Paul was amazing to work with! Unbelievable response times and guided us through every step of the process.
Paul was great to work with - so friendly, understanding and helpful! We felt very cared for throughout the process and he never made us feel like we were bothering him with our questions. He was always upfront and honest and we are so grateful for his help!
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We bought an amazing Condo in the heart of DTC. Paul was very helpful and made us, first home buyers, feel very confident in the process of buying a home. I would highly recommend!
Paul went above and beyond to get all the numbers to work for us. He was available for questions at any time, even at the most unusual times. He consistently would give us updates and let us know that everything was going well or immediately would call us if there are any issues. The whole process went incredibly smoothly and made the home buying process super easy!
Thank you Mr Paul, you were truly amazing and on top of everything! Love your proactive approach in covering all anticipated requests ahead of putting into UW. Your professionalism and high level expertise truly shines thru and I’m so glad we connected through the grapevines. Can’t thank you enough and look forward to doing this again!
My wife and I worked with Paul when purchasing our first and second home. He was recommended to us from a trusted friend so we decided to go with him when trying to find the best loan for us. Going into it, we had no idea what we were doing but Paul was extremely attentive, did a great job explaining the details, and I felt like he always put our needs first. It was a pleasure working with Paul and we will definitely be working with Paul again in the future!
Was a great experience working with Edge to get into our first home. Everything was made easy and clear for us to understand
Paul was excellent! He communicated all of our options and so we can make the best decision possible! He kept us informed the entire time as to where we were in the process so we were able to have a smooth and efficient closing!
Working with Paul and his team was amazing! Paul was straight to the point, gave us guidelines on what to and not to do, made us feel comfortable buying a home, and made it a very simple process. We will forever work with Paul and continue to recommend him to everyone we know!
Paul was absolutely amazing to work with. He kept us in the loop through EVERY step of the home mortgage process. He took the extra time to explain things we didn’t understand, and also had all of our best interests in mind. I truly felt like we were in the best hands possible when it comes to a big financial decision! We can’t thank you enough!!!
Paul was incredible! He made my first-time home buying experience way easier than I had expected. He was incredibly knowledgable and more than willing to explain anything I wasn't sure of. He was super helpful throughout and made the whole process go smoother than I thought was possible.
Paul is amazing! I would highly recommend working with him. He is so responsive and truly cares about each and every client. There are no questions left unanswered when working with Paul and he makes the home buying process easy peasy.
Paul is full service. That is a hard thing to find anymore, and I am proud to be partnered with such a professional, creative, customer-oriented loan officer. His system and process is streamlined and user friendly, making the buyer’s process less stressful, and making my job easier. I love the level of communication on every transaction, and Paul always asks if there is anything that he could improve on; constantly striving to be the best. I have raving reviews from our mutual clients. Paul is an excellent choice when you need a home loan! Highly recommend.
Working with Paul was an incredible experience. I was the listing agent for Sellers and he was the lender for the Buyer. He promised a smooth transaction up from and that’s exactly what we received. He met every deadline, early in fact, and was on the ball with keeping us updated every step of the way. His communication and correspondence was spot on. Thank you, Paul, for such a great experience and a smooth transaction!
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Hands down the easiest financial process I have ever been through. I refinanced my home loan with Paul and his team and I just sat back and relaxed while they did their thing. It was a quick and seamless process. I can’t thank Paul enough for his advice and expertise. Paul’s personal attention and his availability throughout the process always made me feel like I was his only client. Top notch service! I highly recommend Paul and his team.
Great team and service. Answered all of our questions and made sure we understood the refinance process. 10/10 recommend!
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Paul was wonderful to work with during our home-buying experience! He was very professional, personable and patient as we worked thru the various scenarios available to us, and was true to his word when he said it was his number 1 goal to ensure we were left in a better situation than when he'd come to us. Thanks to Paul's efforts and diligence, we got precisely the outcome we were looking for, and couldn't be happier!
I highly recommend Paul and his team. They worked their way and explained each step to me and what was expected of me to be quick and efficient. Thank you for a great experience.
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Paul is a great lender he made the process painless and was very informative. He helped get our credit up and rate down so we could get the best situation for our house purchase.
I recommend Paul for any financing you may need!
Paul has been one of the easiest Lenders to work with. Super honest businessman and extremely knowledgeable. I will continue to do business with him. He is a great and trustworthy lender!
Paul is straight up a rockstar. If you have a deal that a lender said can’t be done, or they don’t know how to fix. Paul has the answers and can get the job done. Very creative when it comes to helping structure his clients Loans and giving the advice to get the deal closed. He is an amazing lender partner.
It is truly a pleasure partnering with Paul Cederholm! He is an exceptional Loan Officer who deeply cares for his clients and those he works with. As a Realtor, it is extremely important to have industry partners that value your clients as much as you do. He will jump through all the hoops needed to be able to get the best product for the client and close the deal all while impeccably communicating each step to all that are involved. Thank you Paul for taking such great care of my clients!
Paul was extremely helpful with the refinance process. He kept us in the loop during the entire process and when the original plan fell through, he was able to work a new plan that turned out better than the original. Thanks Paul!
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Plan your next move
Bring your goals and a property address if you have one. Paul Cederholm, mortgage expert and real estate financing strategist, can help you compare the financing choices and plan your next step.
Ready to begin? Start your loan application. Prefer a direct conversation? Call 303-931-6798.
*Information, scenarios, and calculations are for educational and illustrative purposes only—not a loan offer, a commitment to lend, a rate quote or an approval. Programs, costs and qualification requirements depend on the borrower, property, selected lender and current guidelines. Examples are not guaranteed results. Our team can review the details for your situation.
Fix & Flip Project Calculator
Test your acquisition, renovation, financing and sale assumptions before making an offer.
Assumes a constant average balance and simple interest. Real loans use their own funded balance, draw timing, fee basis and accrual method. Closing costs, extensions, taxes and costs not entered are excluded. Estimated profit is not guaranteed.
*Information, scenarios, and calculations are for educational and illustrative purposes only—not a loan offer, a commitment to lend, a rate quote or an approval. Programs, costs and qualification requirements depend on the borrower, property, selected lender and current guidelines. Examples are not guaranteed results. Our team can review the details for your situation. These tools do not replace a Loan Estimate, an underwriting decision, or legal or tax advice. Check all figures before relying on them; Cederholm Mortgage Advisors does not warrant the accuracy or completeness of estimates and, to the extent permitted by law, is not responsible for losses arising from reliance on these tools. This notice does not waive rights that cannot legally be waived.