Fix and Flip Loans San Diego
San Diego’s fix and flip market is driven by the same fundamentals that make it one of California’s strongest real estate markets overall: persistent housing demand, limited inventory, and ARVs that reward quality renovations. The neighborhoods with the most activity I see are in North Park, South Park, Normal Heights, Kensington, and Logan Heights — all areas where older craftsman and Spanish bungalows are being renovated and selling at strong premiums. Further north, communities like Encinitas, Escondido, and Santee offer lower acquisition costs with solid ARV potential.
I’m Michael DiVita, owner of DiVita Home Finance. Licensed in California since 2007. Fix and flip financing is short-term, asset-based, and deal-specific — I match each project to the right wholesale hard money lender for the loan size, timeline, and borrower experience level.
San Diego Fix and Flip Loan Structure
Fix and flip loans in San Diego are structured around the after-repair value (ARV) of the property after renovation. Total financing — purchase price plus rehab budget — is capped at 65–75% of ARV. The acquisition portion funds at closing, and the renovation budget is drawn down in stages as work is completed and inspected by the lender.
San Diego County’s conforming limit has no bearing on hard money fix and flip loans — these are private/wholesale lender products that follow their own underwriting. Loan sizes range from $200K for a Lemon Grove bungalow to $3M+ for a Point Loma or Mission Hills renovation project.
Fix and Flip Terms for San Diego Projects
- Loan-to-Cost — 85–90% of purchase + 100% of rehab, not to exceed 70–75% ARV
- Term — 9–18 months; most San Diego flips close in under 12
- Rate — 9–13% depending on LTV, experience, and project complexity
- Draw Inspections — typically 3–5 draws during construction; faster draws = faster project
- Experience Premium — 2+ completed flips gets you materially better terms than a first-time flipper
Fix and Flip FAQ — San Diego
What’s the minimum down payment for a San Diego fix and flip loan?
Most fix and flip lenders require 10–15% of the purchase price at closing from the borrower, in addition to the rehab costs (which are typically fully funded by the lender via draws). So on a $500K San Diego acquisition, expect to bring $50K–$75K of your own capital to close. The rehab budget — say $150K — comes from the lender in draws as work is completed. Your total out-of-pocket is the down payment plus any costs above what the lender funds. Some lenders allow cross-collateral arrangements where another property substitutes for cash down — call me if you’re trying to minimize capital deployment on a deal.
How long does it take to close a fix and flip loan in San Diego?
Hard money fix and flip loans can close significantly faster than conventional financing — typically 7–14 days for a well-prepared file. The lender needs: purchase contract, your entity documents (if buying in LLC), scope of work and budget, contractor information, and a desktop or drive-by appraisal. I work with wholesale lenders who can issue term sheets within 24–48 hours and close in under two weeks when the deal is clean. If you’re in a competitive auction or off-market situation requiring a fast close, that’s exactly what hard money is designed for. Tell me your timeline and I’ll match you to a lender who can execute.
Can I get a fix and flip loan in San Diego to buy through an LLC?
Yes — most hard money and fix and flip lenders actually prefer lending to entities (LLC, LP, corporation) for investment property transactions. It’s cleaner from a liability standpoint for both parties. You’ll need your LLC operating agreement, articles of organization, and a personal guarantee from the member(s). The personal guarantee means the lender has recourse to you personally, not just the entity — this is standard in the industry. If you’re investing without an entity, I’d encourage you to talk to a CPA about setting one up before your first deal. The asset protection benefit is meaningful in a business with as many moving parts as real estate renovation.
Talk to Michael Directly
DiVita Home Finance | Marin County, CA | Licensed since 2007. DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
