Real estate, in all its forms, is one of the most effective ways to grow wealth and improve one’s financial situation in this country. And for many, a property rehab is the perfect opportunity to do just that. There are several different reasons that property rehab may take place, including:
- Investing in a ‘flipper’ property that costs little but needs major repairs. After renovations, it can be flipped for a big profit.
- Renovating existing properties that need a facelift.
- Doing repairs to properties that have been damaged in various ways, from storms to vandalism and beyond.
However, there can be a serious challenge with property rehab in that securing the funds needed to complete the project isn’t always easy. Securing the right kind of loan is the key here, but that can be difficult due to a variety of issues including things like the following.
- Poor debt to income ratios or having too much credit extended already.
- Low credit scores due to past problems.
- A need to secure money quickly to start a project fast.
- Appraisal problems that make it harder to secure traditional loans.
When these issues occur, you’ll want to look beyond traditional lending. Our rehab loans are designed to be easy to apply for, easy to secure, and easy to understand. Instead of being based almost entirely on credit score or credit history, our hard money rehab loans are based on the value of your property. That property is used as collateral, and can offer up to 70% ARV. It’s a better method for those with a situation that makes traditional loans an issue.
Additionally, in many instances you’ll be able to close your loan within 7 days so you can get the funds needed quickly. For those who are in a situation that requires them to fix up their property quickly, this option can expedite the process.
The bottom line is simple – property rehab loans are closer and more viable than you might think. Looking beyond traditional lending could be the key to success.