Smart investors know that profitable flips come down to a few timeless principles. Here are a few pearls of wisdom seasoned investors live by when it comes to successful fix and flip projects.
Fix and flip projects have long captured the spotlight through endless TV shows and podcasts, making the process look quick and effortless. However, seasoned investors know that it takes more than a paintbrush and a vision board to turn a profit.
Like any business, flipping properties requires skill and flexibility.
If you’re an investor seeking to capitalize on today’s opportunities in distressed or undervalued properties, it’s crucial to adjust your approach. Today’s fix and flip strategy requires careful planning, smarter financing, and a deeper understanding of the market.
In this post, we’ll explore how to set your next project up for success.
What is a Fix and Flip Project?#
A fix and flip project is where investors purchase undervalued properties, make targeted improvements, and resell them for a profit.
These properties are often outdated or distressed, and some require major repairs before they can be occupied; but the overall strategy is simple: buy smart, add value, and move fast.
Fix and Flip Project Examples#
Cetan Funds is proud to have recently partnered with a repeat borrower and local contractor on a fix and flip project in Medford, Jackson County, Oregon.
This is our second successful deal together. We funded the purchase in just five business days, covering 85% of the purchase price and 100% of the renovation budget, allowing him to move fast on a promising single-family home.
After completing a full interior and exterior remodel, the property is now beautifully transformed and listed for sale.
Here are some additional rehab projects we’ve funded across Oregon, each different in price, scale, and scope, but all driven by smart investors turning potential into profit.
How to Succeed with Fix and Flip and Rehab Investments#
Success today takes more than luck, it takes discipline. Investors must spot undervalued properties, manage renovations efficiently, and stay adaptable in a changing market.
“The flippers who are still doing well are the ones treating it like a true business, buying right, knowing their numbers, and executing quickly,” says Zach Smith, Principal & COO at Cetan Funds. “At Cetan, we help borrowers plan conservatively, protect cash flow, and stay flexible as their projects evolve.”
Smart investors know that profitable flips come down to a few timeless principles. Here are a few pearls of wisdom seasoned investors live by when it comes to successful fix and flip projects:
It is not a “get rich quick” scheme. #
Fix and flip investing is still a solid strategy in 2025, but the game has changed. What used to be seen as a path to quick profits now demands more skill, capital, and discipline than ever.
At Cetan Funds, we’re seeing this shift first hand.
“There’s still money to be made, but the ‘easy-money’ phase of the market is over,” says Smith.
“Margins have tightened, especially with higher home prices, increased material and labor costs, the recent rise in interest rates, a slower “buyer’s market” in many locations, and more competition for quality properties.”
Time is the biggest drag on return. #
In real estate, time is money, and nowhere is that truer than in fix and flip investing.
Every extra week on the calendar means higher carrying costs and thinner margins. Taxes, utilities, insurance, and loan interest can quietly chip away at profits while a property sits unsold.
That’s why it’s essential to set a realistic timeline that reflects each property’s condition, scope, and market trends with clear milestones for permitting, construction, and resale.
“The most successful flippers understand that efficiency, not perfection, drives profit,” says Smith.
“Line up your contractors early, and never underestimate the value of speed. Time is the biggest drag on return. Of course, if you ever expect to sell it quickly for the price you want, the craftsmanship and attention to detail must be there. But successful flippers know they have to strike a balance by doing it right while still moving quickly.”
Use the “75% rule” when making the purchase. #
Successful fix and flip investing starts with the purchase itself.
One standard guideline used by experienced investors is the 75% Rule (formerly the 70% Rule, but as noted above margins are tighter now): In today’s market, never pay more than 75% of a property’s after-repair value (ARV), minus estimated renovation costs.
For example: If a home’s ARV is $450,000 and it needs $100,000 in repairs, the math works out as follows: $450,000 × 0.75 = $337,500 − $100,000 = $237,500. In this scenario, the most an investor should pay for the property is $237,500.
This built-in margin buffers against holding costs, unforeseen expenses, market fluctuations, and other risks while still (hopefully) leaving room for profit.
Build in contingency funds for surprises. #
New investors often underestimate how quickly expenses add up and how easily delays can cut into profits.
At Cetan Funds, we encourage investors to ground their numbers in real-world experience, not optimism. To stay on track, build a detailed, line-item budget with contingency funds for surprises like repairs, material cost increases, or extended holding times.
“Budgeting more than you think you’ll probably need can save a lot of stress and headaches later when things inevitably cost more and take longer than you anticipated,” says Smith.
Remember to budget for everything.#
“Closing costs, insurance, property taxes, utilities, loan fees, and other holding costs like interest, HOA dues, and even your time should be factored into the project,” says Smith.
“Ignoring them can make a deal seem far more profitable than it actually is.”
In short, smart budgeting protects your profit and helps you adapt when the unexpected happens.
Know the market & stay nimble. #
In today’s competitive market, successful investors stay informed, agile, and data-driven. Make sure your numbers align with local market conditions and that you’re pricing and planning accordingly.
The best opportunities often come from off-market deals found through lead lists, direct outreach, or simply “driving for dollars.”
Use technology to analyze markets, manage projects, and generate leads; it can streamline your process and boost profitability.
Above all, do your due diligence. Understand local real estate-related ordinances, zoning, and potential exit strategies, and know when to walk away. Sometimes the best deal is the one you avoid.
“Savvy flippers treat this like a business and don’t get emotionally attached to a property or project,” says Smith.
Get the right financing in place. #
Unless you have cash, success in flipping houses often starts with the right financing partner.
Many investors rely on flexible options like hard money and private loans to stay competitive in today’s market.
One loan option local investors trust is our Rehab Loans, a short-term, asset-based loan that provides the speed and flexibility regional and national institutional lenders can’t.
Covering up to 90–95% of project costs and 70–75% of a property’s after-repair value (ARV), our loans provide capital our borrowers can count on, helping them focus on what they do best: move quickly, rehab properties, and build wealth through real estate.
Work with a lender who understands the business.#
At Cetan Funds, we see ourselves as our borrowers’ financial business partner, not just a lender. Our goal is to help our clients build wealth through real estate.
When they succeed, we succeed.
So we help them plan conservatively, protect their cash flow, and stay flexible as projects evolve. With hundreds of fix and flips in Oregon under our belts, we know where local projects tend to go off track and how to keep them moving toward the finish line.
We pride ourselves on being efficient, transparent and a reliable partner our borrowers can turn to, whether they need to move quickly on a new purchase or need to talk through a surprise on a project. We’re there to help.
With careful planning and a solid understanding of the Oregon real estate market, fix and flip projects can still deliver strong returns.
Our experienced team understands the importance of speed, clarity, and dependable financing for real estate investors. Hundreds of investors, homebuilders, and contractors have partnered with us.
Ready to move on to your next project? Let’s make it happen with fast, flexible funding from Cetan Funds, your trusted partner in building wealth through real estate.
BORROWER FAQs#
What is a Private or Hard Money Loan?
Private and hard money loans come in many variations, but most are short-term loans provided by an investor or group of investors when conventional financing is unattainable or undesirable.
Most private lenders and hard money lenders, like Cetan Funds, finance projects like fix and flip rehabs, rental properties, commercial bridge loans, land development, and many other unusual or unconventional properties and projects. A private or hard money loan can help real estate investors, developers, builders, and small businesses grow their portfolios and businesses faster than they could on their own.
Here at Cetan Funds, we empower people to build wealth through real estate.
Why choose hard money vs. bank loans?
Hard money (or private) loans are built for speed and flexibility. Banks often require months of paperwork, strict borrower qualifications, and rigid underwriting standards. At Cetan Funds, we base our lending decisions primarily on the value and potential of the property, not just the borrower’s financial profile. This means we can finance properties and projects banks typically decline due to condition, complexity, or unusual circumstances.
Hard money loans are ideal for time-sensitive opportunities like fix-and-flip projects, new construction, or land development.
Where Does the Money You Lend Come From?
Cetan Funds offers two pooled private equity fund investments for Oregon residents who qualify and accredited investors. Our two funds, called Cetan Income Fund and Cetan Opportunity Fund, serve as the primary source of capital for the loans that Cetan Funds originates.
Rather than matching individual investors to individual loans, or borrowing capital from banks or Wall Street as many hard money lenders do, at Cetan Funds, we manage our own pool of funds. The investors own shares of their fund limited liability company and the principals of Cetan Funds manage the portfolio of loans owned by the fund. All loans are serviced by Cetan Funds. To learn more about the advantages of this structure, please contact us.
What Types of Loans Does Cetan Funds Finance?
We can lend on most commercial and residential property in Oregon and SW Washington if the loan is for business or investment purposes. We provide short-term financing for bare land, land development, new construction, rehabs, and residential and commercial bridge loans.
Do You Lend on Primary or Secondary Residences?
No. We can only lend for business or investment purposes and do not lend on owner-occupied residential properties. Check out our blog to learn more about what we do and what we don’t do.
Where Do You Lend?
We lend exclusively in Oregon and SW Washington because we know the market well and are committed to helping grow our local market. We lend primarily in Western, Southern and Central Oregon with an occasional loan in Southwestern Washington.
Do You Only Look at the Property/Collateral?
While we are primarily a “collateral-based lender,” we do not solely look at the property/collateral. In our experience, who you lend to is just as important as what you lend on.
We strive to build long-term relationships with our borrowers, and we cannot achieve that if we focus solely on their real estate. So, we also take into consideration character, capacity, capital, and other conditions.
Weighing these important factors, which are often overlooked by other private and hard money lenders, helps us accurately measure risks for both our borrowers and our investors while allowing us to offer better all-around results for our clients.
Do You Have Minimum or Maximum Loan Sizes?
How Long Are Your Loans?
We offer loans as short as 3 months and as long as 60 months; however, most of our loans are for 6 to 12 months. Plus, we build in automatic extensions to every loan to ensure borrowers have time to deal with unexpected events and circumstances.
What Are Your Application and Underwriting Requirements?
Cetan Funds loans are customized to fit each specific scenario. Therefore, application and underwriting requirements can often vary depending on the situation. Typically, we require the following:
For Applications:
- Cetan Funds Business Loan Application (online form, link provided by your loan officer)
- Personal financial statements for all loan guarantors (form provided)
- Property/project description
- Summary of construction or investment experience (if applicable)
For Underwriting:
- 2 years of tax returns for all loan guarantors
- 3-6 months of bank statements
- Project/property-specific documentation (such as purchase/sale agreements, lease agreements, business financials, etc.)
- Detailed rehab or construction plans and budgets (if applicable)
Please contact us for more information on the application and underwriting requirements for your specific scenario.
How Fast Can I Get a Loan Decision?
How fast is funding?
We pride ourselves on moving quickly. Loan decisions are typically made within 1–2 business days, and pre-approval can often be issued just as fast. Once approved, we can close and fund in as little as 3–5 business days, depending on the project and documentation. That speed lets you secure capital and act on opportunities without the delays common with traditional lenders.
Can I Get Pre-Approved?
How Fast Can You Fund and Close a Loan?
As quickly as 3-5 days.
What is Your Minimum Down Payment?
What Are Your Interest Rates?
Rates vary depending on the project. Typically, annual interest rates are 10-12%. Interest is only charged on the outstanding balance. Therefore, interest is not charged on construction or rehab funds until they are drawn. So, for most of our short-term construction and rehab loans, borrowers actually incur far less than 10-12% in interest expense. For more information, please contact us.
What Are Your Loan Fees?
Origination fees vary depending on the project. Typically, origination fees are 2-4% of the loan amount. We also charge a $995-$1,495 administrative fee at closing.
Can I Live in the Property While I Have This Loan?
Unfortunately, no. Our borrowers cannot live in the residential properties we finance for them.
The only exception is in very specific commercial loan scenarios. If you wish to get a loan on a property you would like to live in now, or in the future, please contact us so we can help you find a lender for that. We are happy to help.
Can I Pay Off My Loan Early?
Do You Fund Rehab and Construction Loans?
On Rehab or Construction Loans, Do You Charge Interest on the Full Loan Commitment?
No. Interest is only charged on the outstanding balance.
How Do Construction Draws Work With Your Loans?
Construction draws are typically disbursed for work completed, materials purchased, or subcontractor invoices ready to be paid. Borrowers work directly with their loan officer, their main point of contact from start to finish on the project, to submit draw requests up to twice per month.
We do not charge fees for construction draws. Draw requests include a breakdown of the items awaiting reimbursement or payment, evidence showing the completed work or materials on site, and copies of subcontractor invoices or receipts over $2,500-5,000. Draws are typically processed in 24-48 hours.
Do You Fund Loans on Bare Land?
Yes, we provide bare land loans. Each situation is different. Please contact us for details.
Do You Finance Mobile or Manufactured Homes?
What is “Cetan”?
Cetan comes from the Lakota language and means “hawk spirit.” We chose it to represent the values we bring to lending: vision to see opportunities, loyalty in building long-term relationships, and speed in delivering funding when it’s needed most.
Supporting local organizations like the Cascades Raptor Center also helps us honor that connection to hawks and our beautiful raptors in the Pacific Northwest while giving back to the community.