How to Get TRUE 100% Financing – The Real Cost of a Fix and Flip

Today we are going to discuss how to get true 100% financing – the real cost of a fix and flip. A lot of people think 100% financing is a gimmick. It’s not. It’s simply a method.

If you’re flipping a property, you can fund the full deal, but only if you know how to stack your financing and plan ahead. In this guide, we’ll walk through a real fix and flip example and show you what it really costs to do it right. Then, in upcoming videos and resources, we’ll show you how to fund all of it without using your own cash.

What 100% Financing Really Means

Let’s start with the basics.

Here’s a typical flip deal:

• Purchase price: $300,000

• Rehab budget: $60,000

• Total cost: $360,000

At first glance, you might think you just need to cover the purchase and rehab. But that’s not the full picture. In fact, there are several more costs you need to plan for.

What the Lender Covers

Most lenders will help you cover part of the deal. But not all of it.

Here’s what they typically do:

• Lend 90% of the purchase price

• Lend 100% of the rehab

So if you need $360,000 total, you’ll probably get about $330,000 from a lender. That leaves $30,000 you need to bring in as a down payment.

At this point, many people think they’re fully funded. But not so fast.

What YOU Still Need to Pay

You’ll need a lot more than $30,000 to complete the flip. Here’s a full breakdown of everything you’ll need to cover out of pocket (or with available funds).

💸 Pre-Closing Costs

You’ll have to pay for a few things before the loan closes.

• Earnest money deposit: $5,000

• Appraisal and other fees: $1,000

That’s $6,000 you’ll need before the deal even funds.

🏁 Closing Costs

Now let’s look at the day of closing.

• Down payment: $30,000 (minus your $5,000 earnest = $25,000 more due)

• Lender fees (2% of $330,000 loan): $6,600

• Insurance (builder’s risk policy): $2,400

Total at closing = $34,000

📆 Interest Payments

Even if you’re not making payments monthly, most lenders expect interest to be paid eventually. You need to plan ahead.

• 5 months of interest at $2,750/month = $13,750

🔧 Rehab Surprises and Extras

Most flips run into unexpected costs. It could be an upgrade, damage, or changes you didn’t plan for. That’s why it’s smart to budget extra.

• 15% of rehab budget ($60,000) = $9,000

• Pre-listing costs (photos, staging, etc.): $500

Total = $9,500

💰 Pre-Funding the Escrow

Lenders don’t give you rehab money up front. Instead, you have to spend first and get reimbursed later. That means you need to front some of the rehab cash.

• 25% of rehab budget = $15,000

This money will come back to you — but only after the work is done and inspected. So you need to have it ready to go.

The Real Total You Need

Let’s add everything up:

• Pre-closing & closing: $40,000

• Interest + surprises + pre-list: $23,250

• Escrow pre-fund: $15,000

Grand Total = $78,250

That’s how much you’ll need in available funds — not necessarily in cash, but ready to go — to complete this deal the right way.

Why It Matters

If you don’t plan for these costs, your project could get delayed. You might not be able to pay a contractor. You might miss a good deal on materials. And worse, you could lose time.

And in real estate, speed equals profits.

What’s Next?

We’ll show you exactly how to cover these costs without draining your bank account. It’s called credit stacking, and it’s how seasoned investors get true 100% financing.

✅ Want to get started now?
Download the free eBook and learn how to build your money bucket: a simple way to fund every piece of your next flip.

Watch our most recent video to find out more about: How to Get TRUE 100% Financing – The Real Cost of a Fix Flip