Hard Money Loans of Park City
Loan Strategy

Fix-and-Flip Loans in Park City, UT

Short-term financing for property renovation and resale projects.

Fix-and-flip loans provide the essential capital that transforms distressed properties into profitable investments throughout Utah's Wasatch Back region. In Park City and surrounding communities, the combination of aging housing stock, strong buyer demand, and premium property values creates exceptional opportunities for renovation entrepreneurs. Whether you're updating a vintage Park Meadows ranch home, modernizing a Prospector Square condo, or completely rebuilding a dated cabin in Woodland, our fix-and-flip financing delivers the speed, leverage, and flexibility that successful projects demand.

The fix-and-flip market in Summit and Wasatch Counties operates differently than in typical urban areas. Properties here often command premium prices due to location and lifestyle amenities, but many were built during Park City's mining era or 1970s-80s expansion periods and feature outdated systems, inefficient layouts, or deferred maintenance. Discerning buyers expect modern finishes, energy efficiency, and smart home features that original construction never included. This value gap between as-is and after-repair condition creates substantial profit opportunities for skilled renovators.

Our fix-and-flip loans are purpose-built for the renovation business model. Unlike traditional mortgages designed for owner-occupants, our financing accommodates the unique cash flow patterns of flip projects, significant upfront acquisition and renovation costs followed by a single payoff when the property sells. We structure loans with interest reserves that cover payments during construction, allowing you to preserve cash for materials and labor. Our underwriting evaluates your project plan and experience rather than personal income, enabling full-time investors and those with multiple simultaneous projects to access capital efficiently.

Applications

Fix-and-flip loans support diverse renovation strategies across the varied housing stock of Wasatch County. Cosmetic updates represent the most accessible entry point, properties needing fresh paint, new flooring, modern fixtures, and landscaping improvements. These projects typically complete in 30-60 days and generate returns through enhanced marketability rather than fundamental value changes. In Park City's competitive market, even relatively minor updates can significantly impact sale prices and time-on-market.

Mid-range renovations address functional obsolescence while preserving original character elements that buyers value. Projects might include kitchen and bathroom remodels, HVAC system upgrades, roof replacement, or window installations. These renovations, typically spanning 60-120 days, bring 1970s-1990s era homes up to contemporary standards while maintaining the mountain architecture and neighborhood context that Park City buyers appreciate.

Full gut renovations transform fundamentally outdated properties into modern residences. These projects strip interiors to studs, reconfigure floor plans, update electrical and plumbing systems, and create essentially new homes within existing structures. Historic Park City properties, older homes in Jeremy Ranch, and vintage cabins throughout the region often require this comprehensive approach. While more capital-intensive and time-consuming (120-180 days), these projects can generate the highest returns by creating move-in-ready homes that command premium prices.

Major structural projects and additions expand living space while renovating existing areas. Converting attics to living space, finishing basements, adding primary suite additions, or expanding footprints to meet contemporary expectations for square footage. In Park City's built-up neighborhoods where vacant lots are scarce, these expansion projects provide the additional space buyers demand. Our financing accommodates the complexity and extended timelines of major renovation projects.

Common Challenges

Renovation financing presents unique challenges that traditional lenders cannot address. Properties in poor condition, precisely those offering the best flip opportunities, fail conventional inspections and appraisal requirements. Banks view these assets as risky collateral and typically won't lend until properties are habitable and functional. This creates a financing gap that hard money fix-and-flip loans specifically fill, providing acquisition and renovation capital for properties that banks reject outright.

Cash flow timing creates another obstacle. Renovation projects require substantial upfront capital for acquisition, followed by ongoing draws for materials, labor, permits, and carrying costs. Personal income and traditional employment rarely provide sufficient liquidity for multiple simultaneous projects or high-value renovations in premium Park City neighborhoods. Our fix-and-flip loans structure disbursements to match project milestones, preserving your cash reserves and enabling you to scale operations.

Construction risk and cost overruns threaten project profitability, especially for less experienced renovators. Unexpected structural issues, permit delays, contractor problems, or material cost increases can transform profitable projects into losses. Our lending approach includes construction oversight that helps identify potential issues early, realistic contingency reserves in project budgets, and experienced guidance based on hundreds of completed projects in the Wasatch Back market. We succeed when our borrowers succeed, creating alignment around project completion and profitable exits.

Our Approach

Our fix-and-flip loan process begins with comprehensive project evaluation that goes beyond typical lender due diligence. We review your acquisition strategy, renovation scope, timeline projections, and exit assumptions with the attention of an equity partner rather than a distant creditor. This collaborative approach identifies potential issues early and ensures project fundamentals support successful completion.

Property assessment includes both current condition evaluation and after-repair value analysis. We visit properties personally or engage local inspectors familiar with Wasatch County construction practices, building codes, and common issues in specific neighborhoods. Our valuation considers comparable sales of renovated properties, current market velocity, and the specific improvements your project will deliver. This detailed analysis informs loan structuring and protects both you and our capital.

Documentation requirements focus on project viability rather than personal financial metrics. We need purchase contracts, detailed renovation budgets with contractor bids or estimates, your project timeline, and evidence of your experience or team capabilities. Construction management oversight includes periodic inspections verifying work completion before disbursements, helping ensure projects stay on track and budgets are appropriately allocated. We coordinate with Utah-licensed contractors, building departments in Park City, Summit County, Heber City, and other jurisdictions, and title companies experienced in renovation project closings.

Serving Our fix-and-flip lending covers renovation opportunities throughout the Wasatch Back region including Park City's diverse neighborhoods from Old Town to Prospector, Deer Valley luxury properties, Kimball Junction condominiums, Heber Valley communities like Midway and Francis, and mountain properties in Kamas, Oakley, and Woodland. We understand the distinct buyer expectations, renovation costs, and market dynamics of each submarket.

Frequently Asked Questions

What loan-to-value and loan-to-cost ratios do you offer for fix-and-flip projects?

We typically finance up to 90% of acquisition cost and 100% of renovation expenses, subject to a maximum of 75% of after-repair value. For experienced flippers with proven track records in the Park City area, we may advance higher leverage on strong projects. Loan structures include interest reserves covering payments during the renovation period, so you don't pay out-of-pocket while working on the project. Terms range from 6 to 18 months with interest-only payments, and we charge no prepayment penalties when you sell.

How are renovation funds disbursed during the project?

Renovation funds are disbursed in draws based on completed work verified through inspections. After closing on the property, you begin renovation work using initial capital or contractor credit. When you've completed a phase of work, typically 20-30% of the total renovation, you request a draw. We inspect the property to verify completion, then disburse that portion of renovation funds directly to you or your contractors. This process repeats until the renovation is complete. This milestone-based approach protects both parties by ensuring work is actually completed before funds are released.

What experience level do I need to qualify for fix-and-flip financing?

We work with investors across the experience spectrum. First-time flippers can qualify with strong projects, reasonable leverage (typically 80-85% of costs), and guidance from experienced contractors or mentors. For borrowers with 3+ completed flips in the past 24 months, we offer increased leverage, streamlined documentation, and preferred pricing. We evaluate your contractor relationships, project management capabilities, and understanding of the local market in addition to past performance. Even experienced flippers benefit from our local market knowledge and construction oversight.

Can I finance the purchase and renovation of properties needing major structural work?

Yes, we finance properties requiring comprehensive renovations including structural repairs, foundation work, additions, and complete gut renovations. These projects typically require detailed contractor bids, engineering reports when structural elements are involved, and longer timelines (120-180 days versus 60-90 for cosmetic updates). We may hold renovation funds in additional reserve for contingencies on complex projects. Properties with major structural issues, environmental concerns, or code violations can still qualify based on project feasibility and your team's capability to address challenges.

What happens if my flip project takes longer than expected or the market changes?

We build flexibility into our fix-and-flip loans with extension options if projects need additional time. Standard extensions of 3-6 months are available for a fee if the project is progressing but delayed by factors like permit approvals, weather, or contractor scheduling. If market conditions shift and selling immediately would be unprofitable, we can discuss transitioning the loan to a longer-term rental property financing structure, allowing you to lease the property and wait for improved market conditions. Our goal is working with you to find solutions rather than forcing distressed sales in unfavorable markets.

Get Started with Fix-and-Flip Loans

Ready to fund your next real estate project? Apply now for a tailored loan structure and fast underwriting.