Fix and Flip Loans in California
Fix and flip loans in California fund acquisition plus renovation on a single interest-only bridge — sized to after-repair value (ARV), not your tax return. The exit is resale: buy distressed, rehab with draws, list into retail demand, and repay the bridge from proceeds.
Sacramento SFR plus ADU scope funded with draw schedule tied to permit milestones. Typical California investor ARV bands run $485,000 – $850,000 with rehab scopes of $50,000 – $150,000.
For BRRRR, portfolio bridge, or hold-first strategies, see hard money lenders in California — different exit math, same asset-based speed.
Fix-and-flip economics in California
| Parameter | Typical range |
|---|---|
| Rate | 9.5%–13% interest-only |
| Acquisition leverage | Up to 90% LTC |
| Rehab funding | 100% of documented scope (qualified files) |
| Term | 12–18 months |
| Close | 7–10 business days |
Model 8% of ARV for commissions and transfer friction plus 6–8 months carry at your quoted rate — flips fail on timeline, not ARV optimism alone.
Where California flippers find inventory
- Los Angeles / Inland Empire — permit timelines and soft-story scopes extend carry — model 8–10 month holds
- Bay Area — resale buyers demand energy and seismic compliance — budget accordingly
- Sacramento / Central Valley — best flip spreads outside coastal insurance complexity
Distressed MLS, estate sales, and tired-landlord listings reward proof of funds in 48 hours — fix-and-flip capital functions like cash without draining your next down payment.
ARV discipline and draw schedules
Lenders cap leverage at the lesser of LTC and ~70–75% of ARV. Before you offer:
- Pull three sold comps — same product, similar GLA, sold within 90 days.
- Line-item scope of work with contractor bids, not a single “$X rehab” guess.
- Align draw milestones with inspection cadence so you are not floating payroll between releases.
California DFPI licensing; AB 1482 rent caps and local ordinances affect DSCR exit modeling.
Profit math on a Riverside flip
| Line | Amount |
|---|---|
| Purchase | $420,000 |
| Rehab | $85,000 |
| All-in | $505,000 |
| Carry (~6 mo @ ~11% IO) | $27,775 |
| ARV (conservative) | $595,000 |
| Selling costs (~8%) | $47,600 |
| Est. net before tax | ~$14,625 |
Spread compresses when ARV comps are optimistic or rehab runs 15%–25% over scope — build contingency into every California budget.
Worked timeline: Riverside resale
- Close in 7–10 days at ~90% LTC on the $420,000 acquisition.
- Rehab $85,000 in four draws — mechanicals first, cosmetics last.
- List at $595,000 after final inspection with 6-month hold.
- Repay bridge from sale proceeds; recycle down payment into the next file.
Flip-specific risks in California
- ARV optimism — one aspirational comp does not support leverage; use the conservative cluster.
- Scope creep — every change order eats margin; lock allowances with your GC.
- Seasonality — exterior work and buyer traffic vary by market; California flippers should model weather and DOM locally.
- Insurance and permits — bind coverage early on distressed stock; permit delays extend carry.
Why investors work with Jaken Finance Group
We fund California flips with draw discipline, ARV stress-testing at pre-qual, and clear resale-or-hold guidance when the market shifts mid-project. You get investor speed without national call-center underwriting.
For bridge, BRRRR, and portfolio capital, see hard money lenders in California.
Not sure which product fits? Start with what kind of loan you need or get pre-qualified.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Closing times are in business days and commence upon receipt of appraisal payment and satisfaction of borrower conditions. All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.