How to fund a house flip in Utah.

A plain-English guide for first time and experienced investors in Salt Lake, Utah, Davis and Weber counties. We are a private lender, so we have noted where our loans fit and where they don’t.

The short answer

Most flips are paid for with some of your own cash plus a short term loan. Banks and credit unions usually cost the least, but they are slower and often want experience and income documents first. Private lenders cost more, decide mainly on the property and your plan, and can close in days. A partner can fill a gap in cash or experience in exchange for a share of the profit.

Five ways to pay for a flip

Option	Speed	Cost	Works well when	Watch for
Your own cash	As fast as the purchase	No interest, but the money is tied up	The project is small and you want it simple	One project can use most of your savings
Equity in your own home (HELOC or cash out refinance)	Usually a few weeks to set up	Usually less than a private loan	You have equity and a steady income	Your own home becomes the collateral
Bank or credit union loan	Often several weeks	Usually the lowest rates	You have a track record and strong income documents	Some will not lend on a house that needs major work, or on a first flip
Private lender (often called hard money)	Days to a couple of weeks	Higher: interest plus points	The purchase is competitive, the house needs work, or it is your first flip with a solid plan	Terms are short, so the plan to sell or refinance has to be realistic
A partner or investor	Depends on the partner	A share of the profit instead of interest	You need more cash or experience than you have	Put the split and who decides what in writing first

How a short term flip loan works

You find a property and put it under contract.
You send the lender the address, price, rehab budget and plan.
The lender reviews the property and the plan, then offers terms in writing: loan amount, rate, points and length.
A title company handles closing. The lender funds the purchase. Rehab money is usually released in draws as the work is done.
You pay interest each month while you renovate.
You sell or refinance, and the loan is repaid from the proceeds.

A worked example

Using our published terms: a $400,000 loan at 12% interest for 12 months with 2 points costs $4,000 a month in interest ($48,000 for the year) plus $8,000 in points at closing, or $56,000 in total. The $400,000 itself is repaid when you sell or refinance. See the full cost breakdown.

The deal works if the sale price covers the purchase, the renovation, the loan costs and the selling costs, with room left over for surprises. If it only works when everything goes right, it is too tight.

What a lender looks at

The property. What it is worth today, and what it should be worth after the work.
The plan. The scope, the budget, the contractor and the timeline.
Your money in. Most of our borrowers bring 15 to 20 percent of their own funds.
The exit. How the loan gets repaid: a sale or a refinance.
You. Experience helps. A realistic plan matters more.

How to get a quick answer

Most delays come from missing information. Send these with your first request and a lender can usually answer in one pass:

The signed purchase contract, or the price and closing date if you are still negotiating
A contractor bid with line items
Photos of the property as it is now
Three or more recent sales of similar renovated homes nearby
Your budget, including a cushion for surprises
How much of your own money is going in, and where it is coming from

Words you will hear

After repair value (ARV): What the property should be worth once the renovation is finished, based on recent sales of similar finished homes nearby.
Loan to value (LTV): The loan amount divided by the property’s value. A $300,000 loan on a $400,000 house is 75% LTV.
Loan to cost (LTC): The loan amount divided by the total project cost, meaning the purchase price plus the renovation.
Points: A one time fee paid at closing, as a percentage of the loan. One point is 1%. Two points on a $400,000 loan is $8,000.
Interest only: Monthly payments cover interest only. The loan amount is repaid in full at the end.
First position: The lender is first in line to be repaid when the property is sold or refinanced.
Deed of trust: The document, common in Utah, that secures a loan with the property.
Draw: A release of renovation money as work is completed and checked.
Exit: How you will repay the loan, usually by selling or refinancing.
Extension: Extra time on a loan, usually for a fee, when a project runs long.
Comps: Recent sales of similar properties nearby, used to estimate value.
Business purpose loan: A loan for an investment, not a home you will live in. Different rules apply than to a home mortgage.

When a private loan is the wrong choice

You are buying a home to live in. Talk to a mortgage lender, bank or credit union.
You plan to keep the property as a rental for years. A long term rental loan will cost less over time.
A bank can close in time and the lower cost matters more than speed.
The numbers only work if everything goes right.

Where TAG Private Lending fits

We make short term, first position loans for fix and flip, bridge and short term financing in Salt Lake, Utah, Davis and Weber counties. Loans run 6 to 18 months and go up to $5 million, at 10% to 18% interest plus 2 to 4 points, with no application fee. First time investors are welcome. Every deal gets a response within 48 business hours, and approved loans close within seven days. See how our loans work or read the full terms.

This guide is general information, not legal, tax or financial advice. Other lenders’ terms vary. Updated October 29, 2026.