2026 Fix & Flip Playbook
Leverage tiers by experience, draw mechanics, ARV math, and the profit model behind every flip we fund.
Underwriting & Qualification Matrix
| Operator Tier | Prior Exits (36 Mo) | Max Purchase % | Max Rehab % | Max Total LTC | Max ARV % | Indicative Rate |
|---|---|---|---|---|---|---|
| Institutional / Tier 1 | 5+ Completed Projects | 90% | 100% | 90% LTC | 75% ARV | 8.99% – 9.625% |
| Experienced / Tier 2 | 2 – 4 Completed Projects | 85% – 90% | 100% | 87.5% LTC | 72.5% ARV | 9.375% – 9.99% |
| Emerging / Tier 3 | 1 Completed Project | 85% | 100% | 85% LTC | 70% ARV | 9.875% – 10.50% |
| First-Time w/ GC | 0 Exits (Licensed GC) | 80% | 100% | 82.5% LTC | 70% ARV | 10.25% – 10.75% |
Core Playbook Execution Chapters
The Dual Constraint: LTC vs. ARV
Every fix-and-flip facility is governed by the lesser of Maximum Loan-to-Cost (LTC) and Maximum After-Repair Value (ARV). When an operator buys at a deep discount, the 90% LTC cap governs; when the purchase is tighter, the 70%–75% ARV ceiling determines total proceeds.
Draw Schedule Architecture & 48-Hour Inspections
Slow construction draws kill contractor momentum. BancorpOne structures rehab budgets by verifiable trade milestones (Demo/Framing, Rough MEP, Drywall/Cabinetry, Finishes/Final). Sponsors submit timestamped Deal Room photo/video verification and receive wire disbursement within 48 hours.
The Dual-Exit BRRRR Underwrite
Before funding any flip, we run a secondary test: if the retail resale market softens by 8%, will the property qualify for a 75% LTV DSCR refinance that pays off 100% of the bridge loan? Deals that pass both the resale profit test and the DSCR takeout test get expedited credit approval.
Frequently Answered Financing Questions
Verified answers to common borrower and broker inquiries regarding loan sizing, guidelines, and execution.
What is BancorpOne and is it a direct lender or mortgage broker?
BancorpOne is a commercial mortgage brokerage helping real estate investors, developers, and business owners finance commercial real estate. We act as capital advisors arranging commercial debt rather than a direct depository bank.
We evaluate property fundamentals, borrower requirements, and transaction dynamics to structure and place senior debt, bridge loans, construction facilities, DSCR loans, and permanent mortgages through institutional capital sources and balance-sheet lenders.
Get Financing Scenario Sized →What commercial property types does BancorpOne finance?
BancorpOne arranges financing across multifamily (5+ units), industrial & logistics warehouses, retail centers, office & medical outpatient facilities, mixed-use developments, hospitality properties, and other commercial real estate.
Each asset class involves tailored underwriting metrics: multifamily focuses on net operating income (NOI) and rent rolls, industrial on logistics access and tenant credit, retail on lease terms and co-tenancy, and hospitality on historical ADR and RevPAR.
Explore Core Property Types →What types of commercial real estate financing can BancorpOne arrange?
We arrange commercial acquisition financing, refinance and cash-out debt, bridge-to-permanent loans, ground-up construction facilities, DSCR rental mortgages, and long-term permanent mortgages.
Structures accommodate stabilized assets seeking fixed-rate long-term capital as well as transitional or value-add properties requiring short-term interest-only bridge capital with future funding reserves.
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