A Memphis flip and a Nashville flip can look like different businesses. Purchase prices, rehab scope and buyer pools differ, and so does the loan structure that makes the numbers work.
In short: No lender is the best choice for every Tennessee flip. The right one is the program that gives you enough leverage at a total cost you can carry for the full project, with draws that keep your contractor working. Compare rate plus lender and closing costs, the share of purchase and rehab financed, draw turnaround, experience requirements, extension terms and how fast each lender can close. LendingStreet finances investment property in Tennessee with fix and flip rates from 9.99% for qualified borrowers, up to 90% of the purchase price and up to 100% of the rehab budget.
LendingOne, Lima One and Kiavi are national lenders that also finance fix and flip projects in Tennessee, and the state has active local and regional lenders too. Their programs differ in how they count experience, how much rehab they fund and how draws work.
Instead of hunting for a universal winner, match the lender to the project. An investor buying an older Memphis single-family for a modest update needs something different from one taking a Nashville property down to the studs.
Quote the same deal with every lender: same purchase price, rehab budget, ARV and expected timeline. Two offers at the same rate can cost very different amounts once fees, draw rules and extensions are counted.
| What to compare | Question to ask |
|---|---|
| Total cost | What is the rate, and what are all lender and closing costs on this loan? |
| Purchase leverage | What share of the purchase price will you finance for my experience level? |
| Rehab funding | Will you finance 100% of the rehab, and is interest charged only on drawn funds? |
| Draw speed | How long from draw request to inspection to funds in my account? |
| Experience rules | Which past projects count, and what do first-time flippers qualify for? |
| Extensions | If I need more time, what does an extension cost and how is it approved? |
| Closing speed | Can you close by my contract date? |
Memphis is known for lower entry prices and a large stock of older single-family homes, which draws both local and out-of-state flippers. Many projects there are priced for entry-level buyers, and the $150K loan minimum means some lower-priced houses are better bought with cash. Nashville is the opposite end: higher prices, strong buyer demand and a lot of competition from new construction, so finishes and layout need to hold up against brand-new homes.
Knoxville combines University of Tennessee demand with older homes close to downtown and growing suburbs. Chattanooga has drawn steady interest for updated bungalows and mid-century houses at moderate prices. Treat any price range you see as illustrative. Your comparable sales decide the ARV, not a city average.
Nashville runs permitting through the Metro Nashville and Davidson County government, while Memphis and Shelby County, Knox County and Chattanooga each have their own building offices and review times. Structural, electrical, plumbing and mechanical work generally needs a permit. Review and inspection waits vary, so confirm locally before you commit to a schedule.
Permit time is carry time. On a loan of around $286,000 at a sample rate of 10.99%, each month adds about $2,619 in interest before taxes, insurance and utilities. If a Nashville gut rehab needs plan review, start the application as early as your contract allows and choose a loan term with room to spare.
This example is illustrative and not a quote. An investor buys a mid-century house in Chattanooga for $240,000 with a $70,000 rehab budget and a $405,000 ARV, planning a seven-month project. Sample closing costs are $6,200, carrying costs are $500 a month ($3,500) and selling costs are about 7% of the sale price ($28,350).
An experienced flipper borrows 90% of the purchase ($216,000) plus the full rehab, for $286,000. At a sample rate of 10.99%, interest is about $2,619 a month, or $18,335 over seven months. Profit is about $38,615. A first-time flipper on a lower-leverage program borrows 80% of the purchase ($192,000) plus the full rehab, for $262,000. At a sample rate of 11.99%, interest is about $2,618 a month, or $18,325, and profit is about $38,625.
Profit is nearly the same. The real difference is cash at closing: about $30,200 (down payment plus closing costs) for the experienced flipper versus about $54,200 for the first-timer. Leverage changes how many deals your cash can cover more than it changes one deal's margin.
| Item | Experienced, 90% of purchase | First-time, 80% of purchase |
|---|---|---|
| Loan amount | $286,000 | $262,000 |
| Sample rate | 10.99% | 11.99% |
| Interest, 7 months | $18,335 | $18,325 |
| Cash at closing | $30,200 | $54,200 |
| Estimated profit | $38,615 | $38,625 |
We finance fix and flip projects from $150K to $5M+, with rates from 9.99% for qualified borrowers and terms typically of 12 to 18 months. We cover up to 90% of the purchase price and up to 100% of the rehab, with rehab money paid in draws after work is completed and inspected.
We can close in as little as 10 days when the file and title are ready. Experience helps pricing and leverage, and first-time flippers can qualify on some programs, often at lower leverage. Our financing team reviews your scenario and comes back with 2-3 options so you can choose between more leverage and lower cost.
Have the property address, purchase contract, scope of work and budget, ARV comps, estimated credit score and a track record with settlement statements. LLC borrowers should include entity documents.
If you are buying in Memphis from out of state, include your contractor and property manager contacts. A local team on the ground makes the draw schedule easier to plan and inspect.
Yes. LendingStreet finances investment property in Tennessee, including Memphis, Nashville, Knoxville and Chattanooga. Loans are business-purpose on non-owner-occupied property, from $150K to $5M+.
It depends on your deal and experience. LendingOne, Lima One, Kiavi, local lenders and LendingStreet all finance flips. Compare total cost, leverage, draw speed and extension terms on the same property.
Yes, when purchase plus rehab supports a loan of at least $150,000. Lower-priced Memphis houses may fall below that and are often bought with cash or as part of a larger project.
We can close in as little as 10 days when title, insurance and documents are ready. Tell us your contract date up front so we can plan around it.
On some programs, yes, usually at lower leverage. A detailed scope of work, a contractor bid and cash reserves strengthen the file.
That varies by program. Many charge interest only on funds disbursed, and some charge on the full loan. Ask each lender how interest is calculated.
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