There are many reasons why a real estate investor would choose to use private financing on a fix and flip loan over a more affordable conventional loan: (1) Quick Funding– conventional banks take a minimum of 45 days to fund just one family residential loan. Whereas, a fix and flip lender funds the renovation loan within 7–14 days. (2) Property Needs Work– because of the conventional bank‘s very conservative underwriting guidelines, most banks will not lend on properties needing repair. However, a private lender offering fix and flip financing will be happy to loan on a property that either lacks cash flow or need repairs in order to be leased out or sold. (3) Not based entirely on credit or income – Traditional banks rely greatly on a borrower’s credit score, documented income, and the borrower's ability to repay the debt. Whereas private lenders specializing in fix and flip loans look at the value of the underlying asset or property in comparison with the amount of the loan versus the borrower’s credit history.