Fix & Flip / Bridge

The program is designed primarily for experienced real estate investors financing business-purpose, non-owner-occupied property. First-time flippers may also qualify at reduced leverage when the property, credit, reserves, project plan, and exit support the deal.

There is no blanket general contractor requirement. Experienced investors can self-manage and act as their own GC, and most of Steel Root's repeat sponsors do. What matters to underwriting is whether a verified track record supports the scope of the specific project.

There is no hard minimum, and a first project can be financeable. Experience affects the leverage available:

• No completed projects: eligible at reduced leverage, with a tighter profitability test and a larger cash contribution. The sponsor must currently own a primary residence and have owned it for at least 12 months. The renovation budget and the budget-to-purchase-price ratio are capped. The primary-residence ownership requirement is a sponsor qualification. Steel Root does not finance owner-occupied property.
• 1 to 2 verified exits in the last 3 years (or up to 5 years for a first-time investor building a record): improved leverage.
• 3 or more verified exits in the last 3 years: the tier where our standard advertised leverage applies.
• 10 or more verified exits in the last 3 years: best available leverage and pricing.

Select qualifying sponsors may receive up to 100% LTC within a very narrow qualification box. Loans are capped at 75% ARV, and up to 100% of the approved rehab budget may be financed.

Draw inspections are generally completed in 1 to 2 business days, and approved draws fund in approximately 2 to 3 business days after inspection.

1-4 unit residential, including single assets and small portfolios.

Yes. BRRRR projects can use bridge financing for the acquisition and renovation, then transition into Steel Root DSCR financing after the property is stabilized and qualifies.

A defined scope, clear exit strategy, adequate reserves, and a credible execution plan are important. When a third-party contractor is being used, having that contractor under contract strengthens the file. Experienced sponsors may self-manage when their verified track record supports the project.