Fix & Flip Financing Showdown: Traditional Banks vs. MGP Private Credit
- Apr 21
- 2 min read
Are you leaving money on the table in your flips?
If you're using a traditional lender, chances are... you might be.
Fix & Flip investors know the importance of speed, flexibility, and high-leverage capital. Yet many find themselves stuck in outdated systems designed for homeowners, not real estate entrepreneurs. Let’s break down the difference between working with traditional banks vs. MGP Private Credit Fund, and why smart flippers are making the switch.
🔨 The Real Needs of a Modern Fix & Flip Investor
Before we compare, let's talk about the real bottlenecks most flippers face:
🔘 Finding funding fast
🔘 Rehab budget shortfalls
🔘 Speed of closing
🔘 Or you're one of the few scaling smoothly — and even then, more leverage never hurts
Now let’s look at how traditional banks stack up next to MGP Private Credit in solving these pain points.
⚖️ Comparison: Traditional Banks vs. MGP Private Credit Fund
Criteria | Traditional Bank | MGP Private Credit Fund |
Property Type | Mostly owner-occupied, very limited investor lending | Residential 1–4 units (investor-focused) |
Loan Amount | $100K – $500K (usually limited) | $50,000 – $3,500,000 |
Loan to Purchase | 65% – 75% (if you qualify) | Up to 90% |
Rehab Financing | Rarely included | 100% of rehab costs |
Max Loan to ARV | N/A or below 60% | Up to 75% of ARV |
Funding Timeline | 45–60 days (if approved) | Close in weeks — sometimes faster |
Underwriting Focus | W2 income, tax returns, seasoning | Deal-based + sponsor experience |
Credit Score Requirement | Often 700+ | 650 minimum |
Recourse | Always full recourse | Full recourse, but flexible with experienced operators |
Term | 30-year fixed, not built for flipping | 12 to 18 months — perfect for flips |
💡 Why MGP Private Credit Wins for Flippers
✅ Up to 90% of Purchase — preserve cash for marketing, design, or your next deal
✅ 100% of Rehab Costs — no more juggling contractor payments
✅ 75% ARV — maximize profit potential with stronger exit value
✅ Investor-First Approach — underwriting based on the deal, not just your tax returns
✅ Fast Closings — because time is equity in a competitive market
✅ Loan Sizes up to $3.5M — scale your flip strategy with confidence
📣 Final Thoughts: Stop Letting Banks Slow You Down
Traditional lenders aren’t built for the speed and scale of today's real estate investors. They want pristine tax returns, W2s, long closings, and low leverage. That’s fine for homeowners — not flippers.
MGP Private Credit Fund is engineered for professional real estate operators who need fast capital, smart terms, and a lender who actually understands the business of flipping.
So ask yourself:
Are you funding like a homeowner... or scaling like a pro?
💬 We fund up to 90% of purchase & 100% of rehab. Visit our website to learn more, contact us to accelerate your next flip.
Manhattan Global Partners LLC.
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