Fix and flip loans are short-term loans designed for real estate investors who buy distressed properties, renovate them, and then sell them for a profit. These loans typically cover the purchase and renovation costs, with lenders focusing on the property's after-repair value (ARV) rather than the borrower's credit history. Fix and flip loans are an attractive option for experienced investors looking to quickly turn around properties. While the terms may come with higher interest rates, they offer speed and flexibility, essential for competitive real estate markets and tight timelines.