In general real estate prices have almost recovered from the ’06 crash. Almost. There are still deals to be had in many areas, especially on houses and buildings that are not in mint condition. There are also areas that are lagging behind the general market for any number of reasons, and here you can often find good opportunities as well.
One of the reasons that houses in need of rehab are hard to sell is that potential buyers may feel insecure about what will be involved in a rehab and how to find the money for necessary repairs and updating. This opens the door for the professional, who knows how to budget and execute a rehab, especially when backed by the right lender.
For commercial properties, a potential store owner is usually not interested in spaces that require gut renovations, because of the time, cost and uncertainty involved. Especially in up and coming downtown areas, like Franklinton in Columbus, Ohio, to name one example, it can pay off to rehab the commercial properties that will house the trendy cafés and tech companies of tomorrow.
So if you are a builder with the know-how and experience to fix a building in bad shape, the fix and flip business can be very lucrative. The beauty is that with the right lender behind you, you don’t need to have the capital to finance the rehab. All you need is the skill and the right house or building.
How? With the kind of rehab loan we offer, you can get 90% of the actual purchase price as well as up to 70% of the value that will be added by your rehab. This means that you will have the money to buy the building and fix the building up front. All you have to do is fix it, flip it and score the profit.