Minnesota flippers plan around two things: winter and point-of-sale rules in the Twin Cities. A good lender gives you the term and draw speed to work with both.
In short: The best fix and flip lender in Minnesota is the one that fits your timeline at the lowest total cost, with solid leverage, quick draws and fair extension terms. Many investors time purchases so exterior work lands between spring thaw and fall, and that schedule should drive which loan you pick. LendingStreet finances investment property in Minnesota, with rates from 9.99% for qualified borrowers, up to 90% of the purchase price and up to 100% of the rehab budget paid in draws. Compare offers on a realistic month-by-month plan, not on rate alone.
Get terms in writing on the same property and compare them in dollars. Most of the difference between lenders shows up in these five items.
If your project spans a winter, give the term and extension questions extra weight.
We finance flips from $150,000 to $5M+, with rates from 9.99% for qualified borrowers. Terms typically run 12 to 18 months, and a complete file can close in as little as 10 days.
We finance up to 90% of the purchase price and up to 100% of the approved rehab budget, paid in draws after each phase is completed and inspected. Experience helps pricing and leverage, and first-time flippers can qualify on some programs, often at lower leverage. The financing team reviews your deal and comes back with 2 to 3 options.
Minneapolis and St. Paul have deep stocks of early twentieth-century homes, including bungalows, foursquares and duplexes, many with original systems that need replacing. First-ring suburbs such as Richfield, Robbinsdale, Columbia Heights and Maplewood have postwar ramblers and split-levels that suit cosmetic and mid-level rehabs.
Outside the metro, Rochester has steady demand tied to Mayo Clinic, Duluth sits on Lake Superior with hilly lots and older homes, and St. Cloud and Mankato each have universities and regional economies of their own. Price levels and buyer pools differ widely, so base the ARV on local sales.
Minneapolis and St. Paul both have truth-in-sale-of-housing programs that require a housing evaluation before a home is listed for sale, and some issues found may need repair. Several other cities have their own point-of-sale or rental rules. Confirm current requirements for your city and plan the evaluation into your schedule before listing.
Permits are handled by each city, and larger scopes take longer to review. Ask the building department about timing for your work before you set a closing date.
Minnesota winters are long and cold, and buyers look closely at heating systems, insulation, windows and ice dams. Basements are common and should be checked for water and foundation cracks from frost movement.
Concrete, roofing and exterior paint are hard to do in deep cold, so many investors buy in late winter or early spring to finish exterior work by fall. A vacant house needs heat or proper winterization to avoid frozen pipes.
This example is illustrative and not a quote. An experienced investor buys a St. Paul home in April for $260,000, plans $80,000 of rehab and expects an ARV of $425,000. The loan covers 90% of the purchase ($234,000) plus 100% of the rehab ($80,000), for $314,000, about 74% of ARV. The investor brings $26,000 down.
At a sample rate of 10.25% with interest on the full balance, interest is about $2,682.08 a month, or $16,092.50 over six months. The sale at $425,000, minus the purchase, the $80,000 rehab, sample closing costs of $8,000, interest, $5,400 of holding costs ($900 a month) and 6% selling costs of $25,500, leaves an estimated profit of $30,007.50.
| Month | Work | Draw |
|---|---|---|
| April | Close, demolition, permits | None |
| May | Electrical, plumbing, HVAC rough-in | $24,000 |
| June | Roof, siding, windows | $22,000 |
| July | Kitchen, bath, drywall | $20,000 |
| August | Floors, paint, punch list, point-of-sale evaluation | $14,000 |
| September | Listed and sold | None |
Send the address, purchase contract, a line-item scope with a schedule, comparable sales and bank statements showing the down payment, closing costs and reserves. Add LLC documents and a list of completed projects.
Tell us when you plan to close and when exterior work will happen. We can show how the timeline affects your cost and leverage before you commit.
Yes. LendingStreet finances investment property in Minnesota, including Minneapolis, St. Paul, Rochester and Duluth. Fix and flip loans are business-purpose loans on non-owner-occupied property from $150,000 to $5M+.
It depends on your project. Kiavi, Lima One and RCN Capital also write investor loans, and coverage varies by state, so confirm each lender finances in Minnesota. Compare total cost, leverage, draws and extension terms on the same property.
In Minneapolis and St. Paul, a housing evaluation is generally required before listing. Other cities have their own rules, so confirm requirements for your property.
Many investors buy in late winter or spring so roofing, siding and concrete happen in warmer months. Interior work can continue year-round.
Yes, on 2 to 4 unit properties when the numbers and after-repair value support the loan.
Yes. A DSCR loan can pay off the short-term loan once the property is renovated and rented, qualifying on the property's rent.
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