Key facts
- The 70% rule: maximum offer = (ARV × 70%) − repair costs [1].
- The remaining 30% must cover commissions, closing costs and lender fees, not just profit [1].
- CR Equity AI fix and flip loans fund purchase and rehab in one loan, up to 100% for investors with 3+ projects on loans of $1M or less [2].
- First-time flippers qualify on CR Equity AI’s grid; no income verification or tax returns [2].
How fix and flip loans work
A fix and flip loan finances the purchase of a property and the renovation budget, to be repaid when the investor sells or refinances. Because these are short-term, asset-based loans, the lender cares most about the deal: purchase price, rehab budget and the after-repair value (ARV).
Start with the 70% rule
The 70% rule estimates the most you should pay: 70% of ARV minus repair costs [1]. With a $150,000 ARV and $50,000 of repairs, that is $105,000 − $50,000 = a $55,000 maximum offer [1]. The 30% left over is not all profit — it also pays agent commissions, closing costs and lender fees [1]. Some investors flex the percentage down to 65% in lower-end markets or up to 80–85% in higher-end ones [1].
Loan-to-cost vs. loan-to-value
Loan-to-cost (LTC) measures the loan against total project cost (purchase plus rehab). ARV measures what the finished property will be worth. Lenders use both: LTC tells them how much of your money is in the deal, and ARV tells them whether the exit covers the loan. CR Equity AI prices on purchase price, rehab budget and ARV, and requires a defensible ARV and a scoped rehab budget [2].
CR Equity AI’s fix and flip program
| Experience | 660–699 | 700–719 | 720+ |
|---|---|---|---|
| First-time | 70% | 75% | 80% |
| 1–2 projects | 75% | 80% | 85% |
| 3–5 projects | 80% | 85% | 90% |
| 6–9 projects | 85% | 90% | 93% |
| 10+ projects | 85% | 90% | 95% |
Leverage by experience and credit score [2]. Investors with 3+ completed projects can reach 100% of purchase and rehab on loans of $1,000,000 or less [2].
- One loan covers purchase and rehab [2].
- Minimum loan $75,000 [2].
- Up to 24 months, then up to 36 months of stabilization with no new application [2].
- Terms in ~5 minutes, decision in ~4 hours, typical close 9–15 days [2].
- Soft pull for terms; hard pull only when the file moves to closing [2].
- No income verification or tax returns [2].
Rehab money is released through CR Equity AI’s construction draw process as work is completed; ask for the draw schedule with your term sheet.
Exit planning
Have two exits: the sale, and a refinance into a long-term rental loan if the market softens. CR Equity AI’s DSCR refinance can take out a flip that becomes a rental [3]. See what a DSCR loan is.
Frequently asked questions
What is the 70% rule in house flipping?
Maximum offer equals 70% of after-repair value minus repair costs. For a $150,000 ARV and $50,000 of repairs, the maximum offer is $55,000.
Can a first-time flipper get a fix and flip loan?
Yes. CR Equity AI’s grid lets first-time investors qualify at 70%–80% leverage depending on credit.
Does CR Equity AI offer 100% fix and flip financing?
Yes, up to 100% of purchase and rehab for investors with three or more completed projects on loans of $1,000,000 or less.
Get real terms on your deal: quick quote · submit a deal to CR Equity AI · all programs · FAQ · Brokers: join the broker program
Related CR Equity AI insights
Sources
- Anchor Loans — Fixing and flipping with the 70% rule
- CR Equity AI — Fix & flip loans
- CR Equity AI — DSCR refinance loans
CR Equity AI, Inc. · NMLS ID 2797309 · Business-purpose loans only; not available for owner-occupied residences. Rates, fees and leverage reflect terms published on crequity.ai as of October 2026 and may change. Timelines are typical, not guaranteed. AIVAA™ outputs are indicative and are not an appraisal, approval or commitment to lend. All terms are subject to underwriting and are set on the executed term sheet. See policies & guidelines.