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Construction & Fix-and-Flip Loans for Investors, Builders and Developers
Blue Fox Capital Corporation arranges and places construction, takeout, fix-and-flip and bridge financing for investors, builders and developers. Business-purpose loans on investment and commercial property only.
- Ground-up construction
- Construction takeout and refinance
- Fix-and-flip and bridge
On select programs, subject to lender approval. Not all applicants will qualify. Term sheets are subject to review and lender approval. Not a commitment to lend.
Every build and every flip moves through the same cycle: buy or entitle the site, fund the work in stages, finish, then sell or refinance. Blue Fox Capital Corporation arranges and places the financing for each stage of that cycle, from ground-up construction and heavy rehab to fix-and-flip, bridge and the takeout loan that pays the construction debt off. These are business-purpose loans on investment and commercial property only.
Term sheets are subject to review and lender approval. Not a commitment to lend.
What We Arrange
- Ground-up construction: new builds on an owned or acquired lot, from single-family infill to small multifamily and townhome projects
- Heavy rehab and completion: renovations beyond the scope of a standard fix-and-flip program, and completion financing on stalled projects
- Construction takeout and refinance: permanent, DSCR or commercial financing that pays off the construction loan once the project is complete
- Fix-and-flip: purchase and rehab financing for 1–4 unit investment property you plan to renovate and sell or rent
- Bridge: short-term financing to acquire, reposition or refinance investment property while the long-term plan comes together
Ground-Up Construction
Construction money is not handed over at closing. The lender funds the land or acquisition piece up front, then reimburses hard costs in stages as work is completed and inspected. You or your general contractor submit a draw request, an inspector verifies the work in place, and funds are released against that verified progress.
This is where inexperienced sponsors get into trouble. If your contractor expects to be paid before work is done, you need working capital to bridge the gap between spend and reimbursement. We will tell you what that gap looks like before you close, not after.
What Construction Lenders Underwrite
- The sponsor. Completed projects of comparable scope carry more weight than anything else in the file
- The budget. Line-item hard and soft costs, with a contingency the lender considers realistic
- The general contractor. License, insurance, bonding where required, and track record
- Entitlements and permits. Shovel-ready files are far easier to place than pre-entitlement land
- The exit. Supported as-completed value, or a rent roll that services permanent debt
- Liquidity. Cash to cover draw timing, cost overruns and carry through completion
Construction Scenarios We Work On
- Ground-up single-family or small-lot infill in an established market
- Small multifamily and townhome development
- Tear-down and rebuild on an acquired lot
- Heavy rehab where the scope exceeds what a standard fix-and-flip program will fund
- Completion financing on a project a prior lender walked away from
- ADU and multi-unit additions on investment property
Construction Takeout and Refinance
A construction loan is meant to be paid off, and the time to plan the takeout is before the certificate of occupancy, not after the maturity notice arrives. We arrange the refinance that replaces construction debt with longer-term financing:
- Build-to-rent: a DSCR rental loan qualified on the finished property’s rent, or a no-ratio DSCR loan if it is not leased yet, including select programs that use the new appraised value without a long seasoning period
- Larger multifamily and mixed-use: a commercial mortgage or multifamily permanent loan sized on the stabilized rent roll
- Not yet stabilized: a bridge loan that retires the construction debt while lease-up finishes
What the takeout lender will ask for: final inspections and certificate of occupancy, the construction loan payoff statement, final budget versus actual cost, leases or the lease-up plan, insurance, taxes and entity documents. Our Construction Takeout Loans page covers the paths by property type and completion stage, and the California construction takeout planning guide walks through the full document list.
Fix-and-Flip
Buying a property to renovate and sell, or renovate and rent? The decision that matters is which capital stack closes the deal: how much of the purchase the lender funds, how the rehab gets paid for, and what the after-repair value supports. Select programs fund purchase and rehab costs, with the rehab released through draws as work is completed and the total loan capped by the after-repair value. Some programs do not require prior flip experience, and investors with recent, verifiable exits generally have the widest choice of programs.
Rehab funding is not full financing. Plan for your share of the purchase price, closing costs, reserves and the interest you carry until you sell or refinance. For the detailed program walk-through, see California Fix-and-Flip & Bridge Loans, and for a worked budget see how much cash a fix-and-flip loan really needs.
Bridge Loans
Short-term financing when a permanent loan is not yet a fit for the property or the plan:
- Acquisition bridge loans to close on a property before a long-term loan can be arranged
- Repositioning and lease-up on property that does not yet qualify for permanent financing
- Refinancing out of a maturing loan when your lender will not extend; start with our loan maturity checklist
- For larger commercial assets, see Commercial Bridge Loans; for asset-based 1–4 unit financing, see Hard Money Loans
What Slows a Construction or Flip File Down
Permits not yet issued, a budget with no line items or no contingency, a contractor without a license or adequate insurance, no comparable completed projects, title issues, or a plan that depends on an as-completed value the appraiser will not support. Bring them up front and we will structure around them or tell you to fix them first.
How It Works
- Scenario review. Send the address, the budget, the plans or rehab scope, your track record and your exit. We will tell you whether it looks financeable and how we would place it.
- Term sheet. Proposed structure and draw mechanics in writing. Term sheets are subject to review and lender approval and are not a commitment to lend.
- Diligence. Appraisal with as-is and as-completed or after-repair value, budget and plan review, contractor vetting, entity documents and title.
- Close and fund. Initial advance at closing, then draws against inspected progress.
- Exit. We start planning the sale timeline or the takeout refinance before you need it, not after.
Construction & Fix-and-Flip FAQ
Can I get a construction loan as a first-time builder?
It is harder and the program choice is narrower, but it is possible with a strong licensed general contractor, a conservative budget, real liquidity and a straightforward project. A first-time sponsor attempting a complex build is where lenders say no.
Do you arrange financing for the land purchase too?
Often yes, on a shovel-ready parcel. Raw, unentitled land is a different and much more limited financing conversation.
How long does a construction or fix-and-flip loan take to close?
It depends on the property, the appraisal, title, how complete your budget and permits are, and the lender. We do not promise a closing date; we tell you what the file needs so nothing waits on you.
Do I need flipping experience?
Not always. Some fix-and-flip programs do not require prior experience, while ground-up construction generally does.
Will I need my own cash for a fix-and-flip?
Yes. Select programs fund the rehab budget through draws, but you will still need funds for part of the purchase price, closing costs and carrying costs, and the total loan is capped by the after-repair value.
What happens if I go over budget?
You cover it, or you renegotiate with the lender from a weak position. This is why lenders require contingency and verify your liquidity before closing.
How do I refinance out of the construction loan when the project is done?
For a rental, usually into a DSCR loan qualified on the property’s rent; for larger multifamily or mixed-use, into a commercial mortgage. We start the takeout conversation before completion so there is time to plan the payoff before maturity.
Are these consumer loans?
No. These are business-purpose loans on investment and commercial property. If you are building or renovating your own primary residence, that is a consumer transaction and a different conversation; see our Home Loans page.
Request a Construction or Fix-and-Flip Term Sheet
Send us the project and a loan advisor will follow up. Term sheets are subject to review and lender approval. Not a commitment to lend.
Related Programs
The loans described on this page are business-purpose loans secured by investment or commercial real estate and are not consumer credit transactions. Blue Fox Capital Corporation arranges and places financing for real estate investors, builders and developers. Blue Fox Capital Corporation is a licensed California mortgage broker (DRE 01527288, NMLS 1840487). On select correspondent loan programs it is the direct lender named on the loan documents. We confirm the role for your loan before anything is submitted. Programs, structures, draw mechanics and availability vary by loan and are subject to change without notice, borrower qualification, property eligibility, appraisal and lender approval. Daniel Eckhouse, NMLS 217328 | CA DRE 01977403. Approval is not guaranteed. Not all applicants will qualify. This is not a commitment to lend. Equal Housing Opportunity.