In fix-and-flip investing, execution risk eats interest rate risk. The cheapest loan on paper often becomes the most expensive one during rehab.
Success takes more than securing funding. It comes from executing every step with precision. This deep dive moves past theory and focuses on how deals work in practice. We analyze two Stormfield Capital transactions: a full-gut rehab in Stirling, NJ, and a time-sensitive acquisition in Orwigsburg, PA.
The breakdown illustrates how balance-sheet certainty and in-house draw control enabled these investors to exceed their ARV targets and grow their portfolios when speed mattered most.
Rate savings are fixed. Execution losses compound.
The Real Cost of ‘Cheap’ Debt
Many fix and flip investors chase the lowest interest rate. They realize too late that the hidden costs of a brokered lender can eat up their profits. Brokered lenders rely on third-party capital providers or warehouse lines. With third-party capital, your loan can be rechecked by someone outside the lender, often at the last minute.
If a contractor is ready for a $40,000 draw and the lender is stuck in a ten-day audit cycle, the project comes to a halt. When work stops, holding costs rise, and IRR (Internal Rate of Return) drops fast.
The Math of Delay: Why 1% Doesn’t Always Save You Money
To see why execution matters, consider a typical $500,000 bridge loan. An investor may spend weeks shopping for a lender that is 1% cheaper in annual interest. On a 6-month project, that difference amounts to just $2,500.
If that cheaper lender delays a single $50,000 draw by two weeks and a contractor leaves the site, the project timeline can easily slip by a month.
Once you account for higher holding costs such as taxes, insurance, and utilities, along with the lost opportunity to move on to the next deal, that 1% saving can turn into a $5,000 to $10,000 loss.
As the following case studies show, a lender’s true value shows up in how reliably they perform during rehab.
Case Study 1: Scaling Through Complexity in Stirling, NJ
The Challenge: A Full-Gut Rehab and the 9-Draw Cycle
Our first case study centers on Stirling, New Jersey. An experienced local investor, who has completed more than five deals with Stormfield, found a single-family property with strong upside and a demanding renovation scope.
Purchase price: $415,000
Renovation budget: $160,000
Projected ARV: $829,000
A $160,000 rehabilitation project progresses through several phases, including demolition, framing, mechanical work, and finishing. The real hurdle wasn’t buying the house; it was getting the cash out to fix it.
Contractors in New Jersey’s competitive market do not wait for payment. When a draw is delayed, they simply move on to the next job site.
The Stormfield USP: In-House Draw Management
Stormfield operates as a balance-sheet lender, and we manage the draw process internally. On the Stirling project, the borrower took 9 separate draws over the course of six months.
In a brokered model, nine draws mean nine chances for the deal to die. At Stormfield, each draw was released without “re-review” delays.
That consistency helped the investor maintain a steady pace and finish the project ahead of schedule.
The outcome: the property exceeded the ARV. The final sale price was $855,000, netting the investor an additional $26,000 in profit beyond their initial expectations. This is the “execution premium” in action.
Case Study 2: The Speed of Certainty in Orwigsburg, PA
The Challenge: A Hard Closing Deadline
Moving to Orwigsburg, Pennsylvania, this deal presented a different set of constraints. An experienced investor identified a single-family property with a “hard closing deadline”.
In these situations, seller pressure runs high. If the lender hesitates, the deal falls apart.
- Purchase Price: $221,000
- Renovation Budget: $75,000
- Initial ARV: $340,000
The Stormfield USP: 7-Day Closing Velocity
Many institutional lenders claim to move quickly, but their underwriting-to-funding timeline often stretches to 21 days. For this Pennsylvania deal, Stormfield used its direct capital structure to close in just 7 business days.
By removing uncertainty around the credit committee bottleneck, the investor was able to secure the property with confidence, knowing the capital was fully committed.
The project also used our in-house draw model, with 4 draws spread over 6 months, which kept the renovation moving smoothly.
The outcome: the project finished ahead of schedule and sold for $374,900, beating the ARV expectation by nearly $35,000.
Why LTC and LTV Structure Matter
In both the NJ and PA deals, the loan structure played a key role in the investors’ ability to scale.
One of the most common questions we receive is about the difference between LTC (Loan to Cost) and LTV (Loan to Value).
In fix and flip projects, LTC often matters more for liquidity. A higher LTC lets investors keep more dry powder in their bank account. That flexibility helps cover unexpected scope changes or move quickly on a second deal at the same time.
- LTV (Loan to Value) is based on the future value of the property.
- LTC (Loan to Cost) is based on the total capital going into the deal, including purchase and rehab.
In the Stirling project, maximizing LTC allowed the investor to manage a $160k renovation without putting pressure on personal cash flow.
That structure is exactly why they have been able to complete more than 5 deals with us.
Conclusion: Why Borrowers Come Back
The Stirling, NJ, and Orwigsburg, PA case studies show that in the 2026 market, investors don’t scale by chasing cheaper debt. They scale by working with lenders whose capital and decisions sit in one place.
The New Jersey investor returned to Stormfield for a 5th deal, not because of marketing, but because of execution.
When draws are predictable and closings are certain, projects finish more quickly, capital is recycled sooner, and portfolios grow.
New Jersey moves fast. Pennsylvania demands certainty. We provide both.
Ready to execute on your next deal?
Do not let a slow, brokered lender derail a strong opportunity. If you need a seven-day close or a dependable draw schedule for a complex rehab, Stormfield Capital is ready to fund.
