CASE STUDY DENVER, COLORADO

Luxury Single Family Fix and Flip: Nearly 95% Effective LTC

Investors searching for fix and flip loans in Denver, Colorado often need fast, high-leverage financing to secure competitive deals before other buyers.

In this case study, we break down how Lead Funding structured a high-leverage fix and flip loan for an experienced investor—covering 100% of the purchase and 80% of the rehab*.  The closing date was 10 days from date of contract, but Lead Funding was ready to close in less than 5 days.

*The loan amount was equivalent to nearly 95% of purchase and rehab — without requiring a heavy down payment.  Read on to learn why that is so important.

  • Denver fix and flip renovation funded by Lead Funding
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DEAL OVERVIEW AND FINANCIALS

Loan Type: Fix and Flip Loan / Hard Money Loan
Purchase Price: $860,000
Initial Rehab Budget: $330,000
Initial After Repair Value (ARV): $1,500,000
Estimated Profit: $125,000
Annualized Cash-on-Cash Return: 31%
Initial Timeline: 9 months
Loan Structure:

  • 100% Purchase Price Financing
  • 80% Rehab Financing
  • Interest-only payments
  • 12-month term

Closing Timeline: 10 days

THE CHALLENGE:

Why This Investor Needed a Hard Money Loan in Denver

The borrower identified an ideal fix and flip opportunity in a competitive Denver neighborhood but needed fast access to capital to secure the deal.

Traditional lenders could not meet the timeline, and the investor required:

  • High leverage
  • Minimal documentation
  • Certainty of close

This is where a private real estate investment lender becomes critical.

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THE STRATEGY:

How Lead Funding Structured the Loan

Maximizing Investor Leverage & Liquidity

Lead Funding evaluated the deal primarily based on:

  • Property value (ARV)
  • Upside potential (high probability of sale above what current ‘comps’ could prove)
  • Rehab scope
  • Borrower experience

We structured the loan to:

  • Maximize leverage (100% financing of purchase price)
  • Minimize upfront out-of-pocket capital

This allowed the investor to preserve liquidity for cash intensive portions of the projects (between draws) and allow reserve for additional prospective projects that may arise prior to project completion and sale.  Had our borrower been required to put 10% to 20% down like other fix and flip lenders in Denver require, their cash reserves would have been depleted, thus increasing the risk that cash constraints could slow renovation progress and increase the project life cycle.  Time is money. Anything that delays a project timeline impacts your bottom line!  The lending structure ensured our borrower had sufficient cash during the tightest portions of the project without disrupting progress.

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LEAD FUNDING LENDING CRITERIA:

Why This Deal Worked

This project met key lending criteria:

  • Strong ARV relative to total project cost
  • Desirable Denver market with high resale demand
  • Clear renovation plan with value-add improvements

Because of these factors, we were able to provide:

  • Fast approval
  • Aggressive leverage
  • Reliable closing timeline
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THE OUTCOME:

Shifting Strategy to Maximize ROI

Based on projected resale above $1.5M, the investor stood to generate significant profit while deploying minimal upfront capital. Shortly after purchase, a comparable property in the neighborhood sold well above the original ARV.  The finishes for that recent sale ‘comp’ were excellent and proved market demand for custom features worth investing in.  Since the loan leverage point freed up borrower capital, the investor committed to a high-quality product and ultimately attained a sale price of $1,825,000.  The project costs increased from $330,000 to $455,000 but yielded a sale price $325,000 above ARV!

This type of structure allows investors to:

  • Scale their fix and flip business
  • Take on multiple projects simultaneously
  • Maximize ROI with less capital deployed

As a private capital lender for real estate investors, Lead Funding manages all facets of origination, underwriting, funding and loan servicing in-house in as little as 1-2 business days from date of application!

Why Real Estate Investors Use Hard Money Loans

For many investors, fix and flip loans in Denver provide advantages over traditional loans:

  • Faster closings (often 5 days or less)
  • Asset-based underwriting
  • Higher leverage (up to 100% of purchase price and up to 100% of rehab)
  • Flexible qualification requirements

Get Fast Fix and Flip Financing in Colorado

If you’re an investor searching for:

  • Fix and flip loans in Denver
  • Hard money lenders in Colorado
  • Fast real estate financing

Lead Funding provides:

  • Rapid approvals
  • Competitive leverage
  • Reliable closings
Apply for financing today to get your next deal funded.

Frequently Asked Questions

What is a fix and flip loan in Denver?
A short-term loan designed for real estate investors to purchase, renovate, and resell properties quickly.

How fast can a hard money lender close?
In many cases, within 5–10 days depending on the deal.

How much financing can I get?
Up to 100% of purchase and a significant portion of rehab costs depending on the project.  View our loan terms and eligibility requirements for hard money loans in Denver and other areas.