Renovation & Flip Finance
A split facility that funds both your property purchase and renovation costs in one package. Valued on the as-if-complete end result, with interest capitalised so your cash stays in the project — not in monthly repayments.
Key Features
Split Facility
One loan covering both property purchase and renovation costs
End-Value Lending
Loan sized against the as-if-complete valuation, not the purchase price
Interest Capitalised
No monthly repayments — interest rolls into the loan until you exit
Fast Approvals
Indicative terms within 48 hours for straightforward projects
Recently Funded Deals
See what's possible with the right finance solution
*Based on real deals settled by Andorra Private. Details may be generalised for confidentiality.
Unregistered MIS — Industrial Warehouse Portfolio
The Scenario
A property syndicate structured as an unregistered managed investment scheme sought finance to acquire a portfolio of large industrial warehouses in regional Victoria.
The Challenge
The syndicate required non-recourse lending with no directors guarantees — a structure many lenders are unfamiliar with. Loan documentation needed to reflect the MIS trust structure correctly, requiring coordination between the client, their solicitor, and the bank's solicitor.
The Solution
We identified a major bank willing to provide a lease-doc facility on a non-recourse basis. We then worked closely with all parties — the client, their legal counsel, and the bank's solicitors — to ensure the loan contracts correctly reflected the trust structure and that no personal guarantees were required.
The Outcome
The facility was successfully arranged with a major bank. The syndicate acquired the warehouse portfolio with no directors guarantees, and all loan documentation was executed correctly on the first pass.
Non-Recourse
Structure
None
Guarantees
Lease-Doc
Facility Type
Major Bank
Lender
Client Testimonials
Hear from our satisfied clients
“Nick as a broker is part of my dream team for not only residential but especially commercial lending and has been nothing short of brilliant! Always calm under pressure and gets the job done. Very proactive and knowledge far superior to other brokers I've worked with. He's also got another option up his sleeve to ensure you achieve your goals. Absolutely no hesitation in recommending Nick for all things finance. Do yourself a favour and have a preliminary chat with Nick.”
Rachael
Commercial Lending
“Nick is an absolute gun at his job. I've been through many brokers over the years, and he is by far the best I've worked with. His knowledge in the commercial space is second to none, and the way he handles the process is completely seamless.”
P
Commercial Finance
“Nick is super professional and highly competent in his craft. He guided me with credible lending options and advice during my commercial property purchase journey. Highly recommended.”
ADS Rawal
Commercial Property
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Start ApplicationHow Renovation & Flip Finance Works
Renovation and flip finance is a split facility loan structured in two tranches: the first covers your property purchase, and the second provides a progressive drawdown for renovation costs as works are completed. This buy-renovate-sell strategy is funded under a single credit agreement, simplifying the process and reducing the cost and complexity of managing two separate facilities.
Unlike traditional bank lending that is assessed on the current value of the property, private lenders in Australia use an as-if-complete valuation — sometimes called an after repair value (ARV) — to determine how much they will lend. This means the loan is sized against what the property will be worth once renovations are finished, not what you paid for it.
A key feature is interest capitalisation. Rather than making monthly interest repayments throughout the renovation period, the accruing interest is rolled into the loan balance and repaid in full when you exit — typically through the sale of the property. This preserves your working capital for the project itself.
Who Is This For?
Renovation and flip finance suits property investors who identify undervalued properties, add value through cosmetic or structural renovation, and sell at a profit. Whether you are an experienced renovator or approaching your first flip with a sound project plan, private lending in Australia offers a flexible, income-independent path to funding.
This product appeals to buyers who cannot meet the income verification requirements of traditional banks, those operating through company or trust structures, and investors working to fast timelines where a standard bank mortgage process would cause them to miss the opportunity.
Non-bank lenders assess deals on the merits of the property and the project — the as-if-complete value, the renovation scope, and the borrower's equity contribution — rather than pay slips and serviceability calculators. That makes private mortgage funding particularly well-suited to active property investors with multiple projects.
Deposit and Equity Requirements
Renovation flip finance is not a 100% funding product. Most private lenders in Australia require a deposit of between 20% and 30% of the purchase price, demonstrating that the borrower has genuine skin in the game. This deposit can come from cash savings, equity in other property, or — in some structures — a second mortgage or caveat loan secured against another asset.
The equity requirement protects both the borrower and the lender. It ensures the borrower is committed to the project and limits the lender's exposure in a worst-case scenario. If you are short on liquid cash but have existing property equity, a private mortgage over that asset may be used to fund part of the deposit.
Lenders also consider the total loan-to-value ratio (LVR) against the as-if-complete valuation. Most renovation flip lenders will lend up to 65–80% of the completed value, depending on the location, project scope, and borrower experience.
The As-If-Complete Valuation
The as-if-complete valuation — widely known in the United States as the after repair value (ARV) — is the cornerstone of renovation flip finance in Australia. A registered independent valuer inspects the property and assesses what it will be worth upon completion of the proposed renovation works, based on comparable recent sales in the area.
This valuation method allows private lenders to lend against the future value you are creating, rather than restricting you to the current market value. It is what distinguishes this product from a standard bridging loan or personal loan, and it is why experienced flippers prefer this structure — it maximises the capital available for the project without requiring the borrower to fund a larger deposit.
Valuers are registered professionals in each state (Queensland, New South Wales, Victoria, and other jurisdictions) and are required to hold a Certified Practising Valuer (CPV) designation. The valuation process typically takes 3–7 business days and forms a critical part of the lender's credit assessment.
Typical Loan Structure
Renovation flip loans in Australia are typically structured for terms of 6 to 24 months, depending on the scope of works and the anticipated time to sale. The first tranche is drawn at settlement to fund the purchase. The renovation tranche is then drawn progressively as works are completed and verified, minimising the total interest accruing at any one time.
Interest rates for private lending of this nature generally range from 8–12% per annum (capitalised), with establishment and line fees applicable. The total cost of funding is recovered from the sale proceeds at exit, making cash flow management predictable for the duration of the project.
Australian property investors sometimes search for "hard money loans" when researching this type of finance — a term borrowed from US real estate investing. In Australia, the equivalent product is a private mortgage or non-bank bridging loan. Andorra Private operates as an Australian-native private lender, structured to AU regulatory and tax requirements, with access to a broad panel of private credit funders across every state and territory.
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Frequently Asked Questions
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