Single Pay Loan | Propertylogy

Single Pay Loan

By on October 6, 2019

A single pay loan is a short term loan that requires the full payment of principal and interest at maturity.

This is very different from a regular mortgage which has a long term tenure and require monthly payment of debt obligations.

Also known as a sleeper note, a single pay loan is usually short term and don’t stretch for over 6 months.

Because of the structure of such loans, they are very suitable for flippers and their flipping activities.

A flipper can obtain short term financing for a fixer-upper, get cosmetic repairs done, and quickly sell a property within that time frame and pocket a tidy profit for himself.

This is also one of the reasons why professional flippers often set themselves a target of complete a whole project from purchase to sale within 6 months.

Single pay loans can also be used to describe bridge loans where a home buyer needs funds to purchase a house, and later use proceeds from the sale of his existing house for the payment of the purchase.

A single pay bridge loan would enable him to fill that finance gap to undertake such strategy.


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