Question 1

Why did Dallas flips return 4.3% gross when the national margin was 25.4%?

Accepted Answer

Only the ones bought well below the comps. ATTOM's Q1 2026 home flipping report put Dallas at a 4.3% gross flip return, against a 25.4% national gross margin and a $66,000 national gross profit. Gross return there means resale price against purchase price, before rehab, financing, holding and selling costs, so a 4.3% gross margin is not a 4.3% profit. On most deals at that spread it is a loss once the rehab and the carry are paid. Every big Texas metro sat near the bottom that quarter: Austin 2.0%, Dallas 4.3%, San Antonio 5.1%, Houston 7.2%. We still fund Dallas flips. We just underwrite the purchase price and the comps harder than we would in a market carrying a 25% spread. Run the numbers on the fix and flip calculator before you sign the contract.

Question 2

Why is Dallas flip volume so high if the margins are that thin?

Accepted Answer

Because the competition is for houses, not for distress. An 11.9% flipping rate on 8.0% national share tells you a lot of operators are buying, and a 4.3% gross margin tells you they are paying up to do it. That combination is a crowded acquisition market. It is worth knowing that no source publishes flip counts, flip returns or flip price bands below the metro level for Dallas, so anyone quoting you a submarket flip margin for southern Dallas, Garland or Mesquite is estimating. Underwrite the specific street and the specific comp set, and hold your after repair value to what actually closed nearby.

Question 3

What does a Dallas ISD address cost in carry against a Frisco ISD one?

Accepted Answer

About 56 basis points of assessed value, or roughly $2,800 a year on a $500,000 property. For tax year 2025, a property in the City of Dallas inside Dallas ISD carried a combined rate of 2.235030 per $100 of assessed value, while Frisco inside Frisco ISD in Collin County carried 1.675480. On a $500,000 property that gap is about $2,800 a year. The rate follows the city, school district and county combination, not the city name: a Dallas address can sit in at least seven different ISDs, and can fall in Collin or Denton County at a materially lower county rate. MUDs, PIDs and other special districts stack on top of those totals, and several in Collin and Denton counties run a full 1.000000 per $100 on their own. Investment property also gets no homestead exemption and no 10% homestead appraisal cap. Pull the actual rate for the parcel before you model the hold, and talk to your CPA about your own situation.

Question 4

Will a Dallas flip sell inside a 6-month term at 58 days on market?

Accepted Answer

Plan the exit against a 6-month term, not a hot market. As of July 2026, DFW resale ran 58 days on market at 6.00 months of inventory and a 94.9% sold-to-original-list ratio, with average sold price at $479.9K and closed sales down 1.3% year over year. Note who you are competing with on the resale side: new construction sat tighter at 4.45 months of inventory with average sold price at $465.0K, which is builder incentives pulling buyers away from resale. Our fix and flip loan runs 6 months interest-only, so fit the rehab schedule, the listing window and one price reduction inside it rather than assuming a first-weekend contract.

Question 5

Can you fund a Dallas County foreclosure auction buy?

Accepted Answer

Yes, and the calendar is fixed, which is why speed matters. Texas forecloses non-judicially under Property Code section 51.002. Sales run on the first Tuesday of the month between 10 a.m. and 4 p.m. at an area of the county courthouse designated by the commissioners court, with notice posted, filed with the county clerk and mailed to the debtor at least 21 days ahead. If the first Tuesday falls on January 1 or July 4, the sale moves to the first Wednesday. Where the debt is secured by the debtor's residence, the servicer must first give at least 20 days to cure before any notice of sale. So Dallas, Collin, Denton and Tarrant distressed inventory arrives in one monthly batch on a date nobody can move. We can issue a term sheet the same day and typically fund within 48 hours of clear title. Apply now ahead of the posting date rather than the week of the sale.

Question 6

Did the wholesaler make the written disclosure Occupations Code section 1101.0045 requires?

Accepted Answer

Confirm the written equitable-interest disclosure was actually made. Texas Occupations Code section 1101.0045 lets someone assign a contract to purchase without a license only if they do not use it to engage in real estate brokerage and they disclose the nature of the equitable interest in writing. Since January 1, 2024, that written disclosure is owed to the seller as well as the buyer, under SB 1577. Subsection (b) is the part that bites: selling or assigning without that disclosure is defined as engaging in real estate brokerage, which without a license is unlicensed brokerage. Ask for the disclosure and the assignment paperwork up front so title is not renegotiating it on closing day, and take legal questions on a specific contract to your attorney. Our guide on double closings covers how the other exit is structured.

Question 7

With Dallas gross flip returns at 4.3%, does weak credit cost me the loan?

Accepted Answer

There is no minimum score on this program. A Dallas fix and flip loan is asset-based, so the purchase price, the rehab budget and the after repair value carry the file. We do run credit, but it carries far less weight than it would at a bank, and there is no hard credit pull to start a scenario. Weaker credit usually costs you leverage rather than the loan, so a file that might price at up to 90% of purchase comes in lower instead of being declined. With Dallas gross flip returns as thin as 4.3% in the first quarter of 2026, less leverage also means less carry, which is not the worst trade here. Subject to underwriting.

Question 8

How much cash sits behind a Dallas flip when gross returns run 4.3%?

Accepted Answer

About 10% of the purchase, plus closing costs and a contingency. We fund up to 90% of the purchase price and up to 100% of the rehab budget, capped to ARV. On a $350,000 Dallas purchase that is up to $315,000 from us and $35,000 from you (350,000 x 90% = 315,000), with the rehab drawn against the schedule instead of paid up front. The term is 6 months, interest-only. Dallas gross flip returns ran 4.3% in the first quarter of 2026, so the purchase price is doing all the work on these deals. Carry a real contingency on top of the down payment. Subject to underwriting.

Question 9

Can I get a Dallas fix and flip loan on my first deal?

Accepted Answer

Yes. First-time flippers are welcome. Experience helps a file, but it is not a gate. What we want on a first Dallas deal is a defensible purchase price, a written rehab budget, and a contractor who can hold the schedule inside a 6-month interest-only term. Where a first-timer usually gets hurt in this metro is the comp set rather than the construction, so hold your after repair value to what actually closed nearby. Subject to underwriting.

Question 10

What is the smallest Dallas fix and flip loan you will write?

Accepted Answer

$100,000, and the program runs to $5M. That range covers a single suburban rehab through to a larger Dallas project. Below $100,000 the fixed costs of a short-term loan take too much of the deal to be worth doing. Above $5M, send it anyway and we will tell you straight whether we can place it. The loan is interest-only over a 6-month term, and amount, leverage and structure are all set in underwriting. Subject to underwriting.

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