Whether you’re new to the business of fixing and flipping properties, or have been in the industry for years, you likely know that loans are essential to financing your projects. Getting a traditional loan to finance them isn’t always the easiest or best solution due to the rigid regulations set for their underwriting and acceptance processes, and if the home you’re fixing is in serious need of repair, it’s highly unlikely that your loan will be approved by them. If it is approved, then you have to worry about their contribution requirements, as many times it’s a large sum out of pocket for you, and though most loans will require some form of down payment, there are much better and easier ways to leverage the property you’re fixing so you can turn it around. This is where our rehab loans come to play.
What Are They?
Our rehab loans are a special type of hard money loan which is meant primarily for the purchase and renovation of properties, though they are not strictly limited to this purpose. These loans enable you to quickly borrow the money you require for your investment property, as well as the funds needed to rehabilitate the property to get it back into sellable shape.
As with any hard money loan, it’s imperative that you consider all facets of the agreement, and invest wisely. After all, rehab loans are not meant to be a long term financing solution; on the contrary, they are meant to be used as a short term means to get your projects done so you can flip them quickly. For instance, our terms range anywhere from 6 to 18 months depending on the project, and it’s always helpful to enter into the deal with clear plans for rehabilitation of the property so we know exactly what we’re working with. If you can do that, then the deal will likely go much more smoothly for everyone involved, and you’ll never have to worry that the current quality of the property will disqualify you for approval.