Question 1

What happens to a rehab budget that crosses 50% of the property's value?

Accepted Answer

It stops being a cosmetic flip and becomes a new-construction project. Under the city's flood damage prevention ordinance, a repair or improvement costing 50% or more of a structure's market value, regardless of the cause, puts the whole building under new-construction elevation standards: finished floor at base flood elevation plus 18 inches in AE zones, and the lowest horizontal structural member 18 inches above BFE in VE zones, where enclosures below that level are capped at 299 square feet of breakaway construction. At that point the deal is better financed under our Galveston ground-up construction program, which is built around exactly those draw and elevation requirements. Get the city's answer on where your scope lands against that 50% test before you fund the deal, not after demolition starts.

Question 2

How thin are flip margins in the Houston metro that Galveston County sits inside?

Accepted Answer

Thin. Houston metro's flip profit margin ran 7.2% in Q1 2026, against 25.4% nationally. ATTOM's Q1 2026 home flipping report put the typical national flip at a 25.4% ROI. Houston metro, which Galveston County sits inside, came in at 7.2%, the strongest of the major Texas metros in that release (San Antonio 5.1%, Dallas 4.3%, Austin 2.0%), but still less than a third of the national figure. No Galveston County or city-specific flip margin is published, so treat this as metro-level context, not an island number, and underwrite it against your own comps. In this market the flip has to be bought right, because the exit does not leave much room to fix a bad purchase price.

Question 3

How fast can I get building permits for a Galveston flip?

Accepted Answer

It depends on where the property sits relative to the seawall. Landward of the seawall, a flip runs on the standard city building permit process, and Galveston does not publish a review-time guarantee for it. If the property is within 1,000 feet of the mean high tide line, or seaward of the first public road, you also need a Beachfront Construction Certificate and Dune Protection Permit, which the city says runs 4 to 6 weeks, including a mandatory 10-business-day review by the Texas General Land Office, plus another 2 to 6 weeks if Planning Commission review is triggered within 50 feet of the Dune Protection Line. Budget that carry cost into a bridge loan before you bid, not after.

Question 4

Does a re-roof on an older island house create an insurance problem?

Accepted Answer

Yes, and it is a common trap on older rehabs. Structures built before January 1, 1988 do not need windstorm certification (a WPI-8) to keep TWIA coverage, but any addition, alteration, re-roof or other repair must comply with windstorm building codes to stay eligible, which pulls a pre-1988 house back into the inspection regime for the work you just did. If the paperwork falls behind the roofer, a WPI-2E application plus a licensed engineer's post-construction evaluation is the fix, not a redo of the work. Sequence this before you list the exit, because an uninsurable house does not close for your buyer either.

Question 5

Can I insure a flip mid-renovation if I bought it storm-damaged?

Accepted Answer

Not until the damage is repaired. TWIA requires a property to be maintained in an insurable condition, in good repair, with no unrepaired damage or hazardous conditions, so a distressed purchase is not TWIA-eligible for wind coverage during exactly the window your bridge loan is outstanding. Sequence the file so wind coverage is bindable at, or immediately after, completion, and confirm what carrier, if any, covers the property during construction. If the plan shifts from a resale to a long-term hold once it is repaired, see the Galveston DSCR program.

Question 6

How much do I need to bring to a Galveston flip?

Accepted Answer

About 10% of the purchase, plus closing costs. We fund up to 90% of the purchase price and up to 100% of the rehab budget, capped to ARV, on a 6-month interest-only term. On a $350,000 Galveston 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. Houston metro gross flip margins ran 7.2% in Q1 2026, so carry a real contingency on top of that. Subject to underwriting.

Question 7

What is the smallest and largest fix and flip loan you will write in Galveston?

Accepted Answer

$100,000 at the low end and $5 million at the high end. That range covers most of what trades on the island and on the mainland side of the county. Below $100,000 the fixed costs of a short-term loan stop making sense for either of us, and a deal that size is usually better done with cash. The 6-month interest-only term and the 90% purchase, 100% rehab structure are the same across the range. Subject to underwriting.

Question 8

Can a first-time flipper get funded in Galveston County?

Accepted Answer

Yes. First-time flippers are welcome on this program. We run credit, but on an asset-based loan like this it carries far less weight than it would at a bank, and there is no minimum score on fix and flip. Weaker credit is usually handled with lower leverage rather than a decline, and there is no hard credit pull to start the conversation. What matters more on a first Galveston deal is the scope: if your rehab budget crosses 50% of the structure's market value, the job pulls under new-construction elevation standards, and that is the thing most likely to sink a first flip here. Subject to underwriting.

Fix and Flip in Galveston

How it works

Run your Fix and Flip numbers.

Fix and Flip in Galveston, answered.

More Fix and Flip questions, answered on the program page

Guides for Fix and Flip

Fix and Flip vs. other options

Other programs in Galveston

Funding Galveston deals fast.