Michigan is two stories that get conflated. Detroit carries some of the lowest entry pricing in the country along with the title and tax complications that come with decades of distress. Grand Rapids and Ann Arbor are conventional, competitive markets with none of that history. Underwriting one as if it were the other is the most common mistake out-of-state investors make here.
The short answer: A fix-and-flip loan funds the purchase and renovation of an investment property, with programs reaching up to 90 percent of total cost and 100 percent of the rehab budget released in draws as work is completed. Underwriting centers on the deal — purchase price, rehab budget, and after-repair value — rather than tax returns. In Michigan, the age and condition of the available inventory is what usually drives scope and therefore leverage.
Detroit flip inventory is inexpensive to acquire and expensive to diligence, with title, assessment and lien research carrying weight that other markets do not require. Grand Rapids and Ann Arbor behave like conventional flip markets with reliable comps. Comparable sales variance between neighboring Detroit blocks is wide enough to affect both margin and lender confidence.
Primary markets: Detroit · Grand Rapids · Ann Arbor · Lansing · Warren · Kalamazoo
Detroit property requires title diligence that most markets do not. County tax foreclosure and land bank inventory have moved a large volume of parcels over the past decade, and unresolved title issues, unpaid assessments and demolition liens surface more often here than elsewhere. Grand Rapids and Ann Arbor carry ordinary older-stock considerations without that layer.
Your rehab scope is conventional, your experience is documented, and the ARV is well supported by recent comparable sales.
This is a first or second flip, the rehab budget is large relative to purchase, or the ARV rests on thin comparable data.
No lender is best for every deal. Kiavi, Easy Street Capital, RCN Capital, Lima One, New Silver, Dominion Financial all write fix-and-flip loans in Michigan and all are legitimate options. They differ on leverage, credit floors, property types and experience requirements. The useful question is which fits this deal.
Works: An investor with a property under contract and a defined rehab scope, exiting by sale or by refinancing into a rental loan.
Does not: The property is owner-occupied, the ARV is unsupported by comparable sales, or there is no rehab budget on a property that clearly needs one.
Acquisition diligence. Beyond the ordinary scope questions, Detroit deals carry title, assessment and lien research that other markets do not require at the same intensity. Properties acquired through tax foreclosure or land bank channels can carry obligations that are not obvious from the listing.
It varies more sharply by neighborhood than in most states. Grand Rapids and Ann Arbor produce reliable comparable sales. Parts of Detroit can have block-by-block variance wide enough that two properties a few streets apart support very different values, which affects both your margin and the lender’s confidence.
There is no single best lender for every scenario. Kiavi, Easy Street Capital, RCN Capital, Lima One, New Silver, Dominion Financial all write fix-and-flip loans and each has different guidelines. The right answer depends on the specific deal. LendingStreet places the same scenario across 30+ capital sources so the comparison happens on one application.
Yes, in all 50 states including Michigan. These are business-purpose loans on non-owner-occupied investment property, from $150,000 with no stated maximum. No W-2 or tax returns required and LLC borrowers are welcome.
Have a Michigan deal? Tell us the scenario and we will price it across our capital sources.
Get My Options →