# Your First Fix and Flip: A Lender's Checklist | KREC

*What lenders look for on a first flip: realistic numbers, a clear scope of work, the right team and cash reserves. A checklist to use before you offer.*

## Your First Flip: A Lender's Checklist Before You Make an Offer

Lenders finance first-time flippers every day. The ones who get the best terms show up with the same few things ready. Here's the checklist.

Short answer

Lenders finance first flips when the numbers are realistic and the plan is credible. Before you offer, have a supported after-repair value, a line-by-line scope of work, a contractor bid, a budget with contingency, cash for the down payment and carrying costs, and an exit plan. Experience helps pricing, but preparation gets the deal done.

Key points

- A realistic ARV and a detailed scope of work.
- A contractor bid and a contingency budget.
- Cash for the down payment, carry and surprises.

### Before you make an offer

1. **Run the numbers backward.** Start from a supported ARV and subtract your target profit, rehab, financing and selling costs to find what you can pay; see [after-repair value](https://keyrealestatecapital.com/blog/after-repair-value-arv).
2. **Walk it with a contractor.** Get a written bid before you're under contract, or as early as possible after.
3. **Write a scope of work.** Line by line, room by room. Lenders size draws from it; see [how rehab draws work](https://keyrealestatecapital.com/blog/how-rehab-draws-work).
4. **Add contingency.** 10 to 15% of the rehab budget is common for a first project.
5. **Know your cash.** Down payment, closing costs, interest, holding costs and the first phase of work before the first draw.

> Under contract or about to offer? Send the numbers and we'll size the loan before you commit. [Size my loan](https://keyrealestatecapital.com/contact)

### What lenders look for

- A purchase price that leaves real margin
- A rehab budget that matches the scope
- An exit that still works if the sale takes longer than planned
- Liquidity to absorb surprises

### How experience changes your terms

Lenders often offer higher leverage and better pricing to investors with completed projects. Your first flip starts that track record, so keep everything: invoices, photos and the closing statement.

Watch for the budget mistakes lenders flag most; see [ten red flags in rehab budgets](https://keyrealestatecapital.com/blog/rehab-budget-red-flags).

### Frequently asked questions

#### Can I get a fix and flip loan with no experience?

Yes. Many lenders finance first-time flippers, often with somewhat lower leverage or higher pricing than for experienced investors.

#### How much cash do I need for my first flip?

Plan for the down payment, closing costs, interest and holding costs, plus enough to fund the first phase of work before the first draw is reimbursed.

#### What do lenders want to see on a first flip?

A supported after-repair value, a detailed scope of work and budget, a contractor bid, cash reserves and a realistic exit plan.

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### Related Articles

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Everything you need to know about fix and flip financing, from loan terms to maximizing your profits on renovation projects.

How DSCR loans qualify a rental on its rent instead of your income: the formula, a worked example, what lenders check and a five-minute self-test.

### Ready to Apply What You've Learned?

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## Article Metadata
- **Headline:** Your First Flip: A Lender's Checklist Before You Make an Offer
- **Published:** 2026-10-27
- **Author:** Key Real Estate Capital

## Frequently Asked Questions

### Can I get a fix and flip loan with no experience?

Yes. Many lenders finance first-time flippers, often with somewhat lower leverage or higher pricing than for experienced investors.

### How much cash do I need for my first flip?

Plan for the down payment, closing costs, interest and holding costs, plus enough to fund the first phase of work before the first draw is reimbursed.

### What do lenders want to see on a first flip?

A supported after-repair value, a detailed scope of work and budget, a contractor bid, cash reserves and a realistic exit plan.

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