I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. Call (800) 239-1103.
You’ve seen the ads: “100% financing for fix and flip investors!” It sounds too good to be true. In some cases, it is. In others, it’s structurally legitimate but comes with significant caveats. Here’s what you need to know before chasing a zero-down flip deal. See also: California Hard Money Loans and Riverside County Fix and Flip Guide.
What “100% Financing” Actually Means
When lenders advertise 100% fix and flip financing, they typically mean one of three things.
1. 100% of purchase price + 100% of renovation costs. The most aggressive programs — usually reserved for experienced investors with documented track records — will fund the entire purchase price and the full rehab budget. You theoretically close with no cash out of pocket beyond closing costs. In California, a few lenders genuinely offer this, but you’ll pay for it: rates run 12–14%, points are 3+, and you need 10+ completed flips to qualify.
2. 90% of purchase price + 100% of renovation. More common. You bring 10% down on the purchase, and the lender funds everything else including rehab draws. This is accessible to investors with 2–5 completed projects.
3. Cross-collateralization. You own another investment property with equity. The lender uses that property as additional collateral, allowing them to fund 100% of the new purchase. Technically zero cash required on the flip — but you’re pledging existing equity.
The Real Minimum Cash-In for Most California Investors
For most investors without a long track record, realistic hard money programs in California require 20–25% down on the purchase price, closing costs (2–4 points + title/escrow, typically $10,000–$20,000), renovation costs funded via draw schedule (lender reimburses as work is completed, so you may need cash to start), and carrying costs (monthly interest, property taxes, insurance during the hold). On a $400,000 Riverside County property, realistic cash-in is $100,000–$140,000 including down payment, closing costs, initial renovation outlay, and carries.
Strategies to Minimize Cash Out of Pocket
Build a track record. Every completed flip improves your terms. Five completed flips unlock significantly better LTVs and lower rates than zero.
Use a private partner. Bring in a capital partner who funds the down payment in exchange for a percentage of profit. You provide the deal and execution; they provide the cash. This is how many successful investors started.
Find motivated sellers. Sellers willing to carry a second mortgage or provide seller financing can reduce your hard money draw, effectively acting as a second layer of leverage.
Wholesale first. Many successful fix-and-flip investors start by wholesaling — finding deals and selling the contract to other investors — to build capital before they flip themselves.
Let’s Structure Your First (or Next) California Flip
Call me — I’ll tell you exactly what you need for your deal and find the right hard money structure. I’ve been helping California investors access hard money financing since 2000.
Frequently Asked Questions
Is 100% fix and flip financing real in California?
Yes — but it’s not available to everyone. True 100% financing (purchase + renovation) requires an established track record of 10+ completed flips, rates of 12–14%, and 3+ origination points. A more common version is 90% of purchase price + 100% of renovation costs, available to investors with 2–5 completed projects. First-time flippers typically need 20–25% down. Cross-collateralization against existing investment property equity is another path to 100% financing on a new flip — you pledge equity in another property as additional collateral. In all cases, you’ll still pay closing costs out of pocket. I’ll tell you exactly which structure fits your situation when you call.
How much cash do I realistically need for my first California fix-and-flip?
For a first-time flipper on a $400,000 Riverside County property, realistic cash requirements are: $80,000–$100,000 down payment (20–25%), $10,000–$20,000 in closing costs (points + title/escrow), a portion of renovation costs to cover initial work before the first lender draw, and carrying costs (monthly interest, taxes, insurance) for the hold period. All-in, $100,000–$140,000 is a realistic number for a mid-range Inland Empire flip. Strategies to reduce this include partnering with a capital investor who funds the down payment in exchange for a profit split, and building a track record to access better LTVs on future deals.
How do renovation draw schedules work on California hard money fix-and-flip loans?
Hard money lenders typically hold renovation funds in a controlled escrow and release them in draws as work is completed and inspected. You submit a draw request with photos and documentation of completed work; the lender (or an inspector) verifies the work; funds are released within 1–3 days. This means you often need to float the cost of each phase of work until the draw clears — which is why even 100% renovation financing loans require some working capital. A common structure for experienced investors is 4–5 draws over a 6-month renovation. Timing your contractor payments to align with draw releases minimizes the float you need to cover out of pocket.
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
