Steve Mannenbach · · 7 min read
Real estate investors have multiple financing options for acquisition and development projects. Understanding the differences between fix & flip, bridge, and construction loans is essential for selecting the right capital structure.
Fix & Flip Loans
Best for: Properties requiring renovation with clear ARV and exit timeline (6-18 months). Features controlled draws and interest-only payments on drawn funds.
Bridge Loans
Best for: Acquisition of stabilized or near-stabilized properties with a refinance exit strategy, subject to lender review, documentation, and closing conditions.
Ground-Up Construction
Best for: Land development and new construction projects. Requires experienced contractors and detailed project management.
Decision Matrix
Consider project timeline, renovation scope, exit strategy, and experience level when selecting your financing approach.