Financing a Flip in Connecticut's Older Cities
Fix and flip loans are a natural fit for New Haven and Hartford, which have some of the oldest housing stock in Connecticut. Two- and three-family homes, older apartment buildings and mixed-use properties come up for sale often. Many of them need real work before they can be sold or rented at full value. That is the kind of project a fix and flip loan is built for.
Sachem Lending is based in Branford, a short drive from New Haven, and has lent to Connecticut investors since 2010. This page explains how our fix and flip loans work in these two cities. It also covers what we look at when you bring us a deal.
How Our Fix and Flip Loans Work in New Haven
A fix and flip loan is short-term financing secured by the property. It covers the purchase and the renovation, and you repay it when you sell. Our loans run from $500,000 to $25 million, with terms that typically run 12 to 36 months.
Renovation funds are released as the work is completed. Our in-house team handles draw requests directly. You are not waiting on a third party to approve each stage of the job.
What We Look At
Our underwriting focuses on the property, your renovation plan and your experience with similar projects. We do not look only at your credit score or income. For a New Haven or Hartford flip, that means the purchase price and the scope of work. It also means your budget and what you expect the finished property to sell for.
In 2022 Sachem acquired Urbane New Haven, LLC, a real estate development and construction firm. The people reviewing your budget have hands-on construction experience, which helps when a plan needs adjusting before you start.
Planning Around Local Approvals
Zoning and permitting in Connecticut are handled town by town. Timelines differ between New Haven, Hartford and nearby towns such as West Hartford, East Hartford and New Britain. A gut renovation usually needs more approvals than a cosmetic update. Tell us early which town the property is in and what work you plan. That way the loan term and draw schedule fit the project.
Is Your Project a Fit?
Our minimum loan is $500,000. So our fix and flip loans suit larger renovations, multifamily buildings and investors running several projects at once. If your deal is smaller, we may not be the right lender for it. It is better to know that up front.
If you need to move quickly, most of our loans close in 30 to 45 days. In most cases there is no prepayment penalty, so you can pay the loan off as soon as the property sells.
Talk to a Connecticut Lender
Send us the property address, purchase price, renovation budget and expected sale price. If the project qualifies, we send a term sheet. Funding estimates usually take a day or two, and you can call our Branford office to talk a deal through before you apply.