Philadelphia offers strong opportunities for real estate investors, especially fix-and-flip investors. With median prices around $416,000 and over 60% of homes selling in under 30 days, investors need fast project financing. Traditional mortgages often take 30 to 45 days to close, which can cost deals. Many investors use hard money loans, fix-and-flip loans, bridge loans, private lending and other fast loans in Philadelphia.
In 2025 the local market had about 9,249 active listings and ranked among the most competitive metro areas for buyers. Sellers favor offers that close quickly and carry fewer contingencies. Many fix-and-flip lenders and private lenders can close in 7 to 14 business days. Because underwriting is streamlined, investors who move fast outpace slower methods.
These loans rely on property value or after-repair value (ARV), not borrower credit history. They typically fund 60–75% of ARV and sometimes reach 90% loan-to-cost (LTC). Loan terms usually run 6 to 18 months and can extend to 24 months.
Interest rates range from 9% to 15%, and origination fees fall between 2% and 4%. Funds are disbursed gradually through draw schedules. Interest-only payments may apply during renovation. Loan sizes vary from roughly $75,000 to over $2.5 million.
Groundfloor Lending offers fix-and-flip loans with these features:
Groundfloor evaluates projects based on ARV and renovation scope instead of requiring tax returns or income documents. Applicants often receive responses within 24 hours. Prequalification is fast when investors submit a complete project packet.
These options deliver fast capital, flexible terms and minimal documentation. They suit off-market deals or competitive bids. Some private lenders fully fund renovation costs based on an investor's experience and project scope.
These rely on equity in existing properties. While interest rates may be lower, these options take longer to close. They are less effective in time-sensitive situations.
Different Philadelphia neighborhoods suit different investment strategies:
Real estate investors in these areas often use fix-and-flip loans, bridge loans or project financing to move quickly in competitive listings.
Full rehabs typically cost $75 to $115 per square foot. Cosmetic updates generally run $35 to $55 per square foot. Urban flips usually complete in 3 to 6 months. Historic and rowhome projects may take 4 to 8 months due to permitting delays that often require up to 15 business days.
Lenders evaluate your exit strategy, including ARV projections, comparable sales, and timeline. They expect a detailed renovation scope with contractor bids and contingency provisions. You must show proof of down payment funds, typically 10% to 30%.
Experience helps, but first-time fix-and-flip investors with strong documentation and a clear project financing plan can qualify. Organized project timelines and clear budgets boost approval chances.
Most hard money, bridge and Groundfloor loans close within 7 to 14 days. Some private lenders offer pre-approval in 24 hours.
Expect a 20% to 30% down payment. Well-structured projects may qualify for up to 90% to 100% loan-to-cost financing.
No. New fix-and-flip investors can qualify if they show a clear plan, proof of funds and a strong exit strategy.
Yes. Most lenders, including Groundfloor, offer rehab funding through scheduled draws or full renovation coverage.
No. With Groundfloor’s deferred payment loan option, you pay no monthly payments during renovation. All interest accrues and is paid at the end.
Select Philadelphia neighborhoods that match your investment goals. Prepare a complete financing packet including exit strategy, comparable sales, contractor bids, timeline, and budget. Provide proof of cash flow and liquidity. Secure prequalification to show sellers you can close quickly. Compare loans based on interest rate, flexibility, closing speed and fees.
Timing matters in Philadelphia. Spring and summer bring more listings but more competition. Winter can offer better purchasing opportunities when you're ready to act. Understand zoning and historic permit rules to avoid delays. Track rehab cost overruns, carrying charges, financing interest and timeline deviations. Subtract all project costs from ARV to estimate net profit and cash flow.
Networking with contractors, agents and fix-and-flip lenders provides credibility and access to better loan offers. Being organized and securing prequalification early earns a competitive edge.
If you want to finance a fix-and-flip in Philadelphia, speed and structure matter. Hard money loans, fix-and-flip loans, bridge loans and private lending offer the fast, flexible capital that traditional mortgages don’t. Groundfloor’s program delivers fast closings, complete renovation coverage and deferred interest.
When combined with insight into Philadelphia neighborhoods, cost benchmarks, lender criteria and clear project timelines, this strategy empowers real estate investors to close deals quickly, manage risk, and scale successful portfolios. Work with lenders and consultants who understand the local market. With planning, clarity and speed, your next flip could be your most profitable yet.
Looking for more insights? Read another Philadelphia real estate investment blog or visit our Philadelphia homepage to learn more.