Fix-and-Flip Financing in Las Vegas: How the Numbers Actually Work
You found a tired house in a good Las Vegas Valley pocket, the comps look promising, and now the real question hits: how do you actually pay for the purchase and the rehab without tying up every dollar you have? Traditional mortgages weren’t built for a 90-day project on a home that needs a new roof and a gutted kitchen. That’s where fix-and-flip financing comes in, and understanding how lenders size these loans is what separates investors who profit from those who get squeezed.
Quick answer: A fix-and-flip loan is a short-term, asset-based loan that funds most of a property’s purchase price plus much of the renovation budget, sized against the home’s after-repair value (ARV) and its total cost. Instead of your credit score doing the heavy lifting, the deal’s numbers (ARV, loan-to-cost, points, and a realistic timeline) determine whether it pencils out.
The four numbers every flip lender looks at
Bank underwriting revolves around your income and credit. Private-capital and hard-money lenders who fund flips care far more about the project itself. Four figures do most of the talking, and once you learn to read them, you can evaluate a deal the way a lender would before you ever write an offer.
1. After-repair value (ARV)
ARV is what the home should sell for once the rehab is done, based on recent comparable sales of similar renovated homes in that specific neighborhood. It’s the anchor for the entire loan. Most flip lenders cap the total loan at a percentage of ARV (commonly in the neighborhood of 65% to 75%) so the ARV estimate has to be grounded in real Valley comps, not optimism. A confident ARV pulled from homes that sold in Spring Valley won’t hold up on a project in North Las Vegas.
2. Loan-to-cost (LTC)
LTC measures the loan against your total project cost, purchase price plus rehab budget. A lender advancing, say, a large share of purchase and most of the renovation costs is quoting an LTC. The higher the LTC, the less cash you bring to the table, but the more the lender expects the numbers and your track record to be airtight. LTC and the ARV cap work together: the loan can’t exceed either limit, so whichever is tighter controls your maximum draw.
3. Points and interest
Short-term flip money costs more than a 30-year mortgage, and it should, it’s faster, more flexible, and secured by a project rather than a paycheck. Pricing typically comes as “points” (an upfront fee equal to a percentage of the loan) plus an interest rate charged only while the loan is outstanding. Because these loans are short, the total dollar cost of financing is driven as much by how long you hold as by the rate itself.
4. Timeline
Time is a cost. Every extra month of interest, insurance, utilities, and property taxes comes straight out of your profit. A realistic Las Vegas flip timeline accounts for permitting where required, contractor availability in a busy summer market, and the days-on-market it actually takes to sell once you list. Lenders often set a 6-to-12-month term for a reason, they want the exit built into the plan from day one.
How the pieces fit together on a Valley deal
Imagine a Henderson property you can buy for $360,000 that needs $60,000 of work, with a well-supported ARV of $520,000 based on renovated comps a few streets over. Your total cost is $420,000. A lender might advance most of the purchase and rehab against that ARV, leaving you to fund the down payment, points, closing costs, and carrying costs out of pocket. Whether the deal works depends on what’s left after selling costs, financing, and a cushion for surprises, figures here are illustrative, and every project is underwritten on its own current numbers.
The discipline is simple to state and hard to practice: build the deal so it still works if the ARV comes in a little low, the rehab runs a little long, or the sale takes an extra month. Flips that assume everything goes right are the ones that hurt when something doesn’t.
What makes a Las Vegas flip deal financeable
- Credible comps: An ARV backed by recent, nearby sales of comparable renovated homes, not citywide averages or a hopeful list price.
- A real scope and budget: A line-item rehab plan with contractor bids, plus a contingency for the surprises older Valley homes tend to hide.
- Skin in the game: Cash for the down payment, points, and carrying costs signals you can weather a bump without stalling the project.
- A clear exit: A defined plan to sell (or refinance into a longer-term loan) inside the loan term, with the timeline mapped from close to sale.
Frequently asked questions
How much money do I need to fund a fix-and-flip in Las Vegas?
It varies by deal, but plan to cover the down payment, loan points, closing costs, and several months of carrying costs out of pocket, since most flip loans finance a portion rather than all of your total cost. The stronger your ARV support and experience, the more a lender may advance. Treat your cash reserve as a buffer, not just a minimum.
What’s the difference between ARV and loan-to-cost?
ARV is the projected value of the home after renovations, while loan-to-cost measures the loan against what you actually spend to buy and fix it. Flip lenders use both: the loan usually can’t exceed a set percentage of ARV or a set percentage of total cost. Whichever limit is lower caps how much you can borrow on that project.
How fast can fix-and-flip financing close?
Asset-based flip loans are built for speed and can often close in a matter of days to a couple of weeks, far quicker than a conventional mortgage. That speed is a real advantage in a competitive Las Vegas market where sellers favor certainty. The tradeoff is higher cost, so the quick close needs to be paired with a deal whose numbers justify it.
Is a fix-and-flip loan the same as a bridge loan?
They’re cousins. Both are short-term and asset-based, but a fix-and-flip loan specifically funds acquisition plus renovation and is underwritten against ARV, while a bridge loan typically covers a timing gap on a property you already control. Some lenders blur the line, so always confirm exactly what’s being financed and how the value is determined.
Key takeaways
- Fix-and-flip loans are short-term and asset-based, sized against after-repair value and total project cost rather than your paycheck.
- ARV anchors the loan, and it’s only as reliable as the neighborhood-specific comps behind it.
- Loan-to-cost and the ARV cap work together, the tighter of the two sets your maximum borrowing.
- Points, interest, and time are all real costs; a longer hold quietly erodes your margin.
- Financeable deals pair credible numbers with cash reserves and a defined exit inside the loan term.
Run your next deal through the numbers first
Fix-and-flip financing rewards investors who treat it as a math problem, not a leap of faith, when the ARV, loan-to-cost, points, and timeline all line up, the loan becomes a tool instead of a gamble. If you’re weighing a flip in the Las Vegas or Henderson market and want to walk through how a specific deal’s numbers would look to a lender, I’m glad to talk it through. Visit the Private Capital page or reach out through my contact page for a no-pressure conversation. And if breakdowns like this are useful, subscribe to the blog and follow along on Instagram and LinkedIn for more.
Educational only, not investment or financial advice; all investments carry risk. Beau McDougall, Executive VP of Private Capital, All Western Mortgage (NMLS #2611909).
