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rehab loans: The Importance of an Accurate After Repair Value - 01/23/12 05:43 PM
There are a great deal of new investors looking to get into the fix and flip business. We do rehab loans for these types of transactions, and work with new investors on a regular basis. While we have a lot of successful investors we have worked with, one pitfall they must avoid is using an overly aggressive after repair value for their base assumptions.
A good after repair value, or ARV, should give an accurate representation of what the property is actually going to sell for once the rehab is complete. This value needs to be accurate, as all other numbers will be … (1 comments)
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rehab loans: Alternative Financing Options With Hard Money - 08/09/11 01:39 PM
These days financing for real estate transactions can be a challenge. The banks have tightened their lending standards to the point where even quality borrowers may be unable to obtain the loans they need. This is compounded further among the smaller community banks, which make a lot of the local commercial, mixed use and other real estate loans that are not secured by an owner occupied single family residence.
For those with financing issues, a potential alternative is hard money. There are both pros and cons to using hard money. The benefits include looser qualification standards. For non consumer loans, often … (1 comments)
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rehab loans: Hard Money Rehab Loans - 05/26/11 06:06 PM
For real estate investors just starting out, or for those looking for additional leverage, hard money rehab loans have a lot to offer. Typically, these hard money rehab loans are short term, maybe 12 months in length. For those able to obtain this type of financing and pair it with an equity partner or gap financing, the ability to purchase rehab property with zero cash out of pocket is realistic.
These equity partners, or gap financiers, can typically take anywhere from 20-50% return on their money. Sometimes this is in conjunction with participation in the project (a percentage of the profit) … (2 comments)
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rehab loans: Fix and Flip Loans - 03/03/11 05:50 PM
Fix and flip loans are a great vehicle for real estate investors these days. With the number of foreclosures and bank owned properties still at or near all time highs in many locations throughout California, opportunity is there for investors to profit.
Fix and flip loans are typically short term loans that incorporate funds to cover interest payments for 4-6 months and have a builders control account that can be drawn on to rehab the subject property. These days, our fix and flip loans are funding to 60% of the after repair value. Regardless of the after repair value, however, fix … (1 comments)
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rehab loans: Hard Money Loans - 100% Acquisition and Rehab Loans - 10/14/08 01:03 AM
Hard money loans are a good way to take advantage of the opportunities created by the downturn in today's housing market. I get a lot of calls from real estate investors looking for hard money loans to purchase and rehab property they can purchase below market value. Many are looking for 100% financing, which is a tough thing to find in today's lending climate. With that being said, there are programs that do allow for 100% acquisition financing on these rehab transactions.
The guidelines for these 100% acquisition and rehab loans are pretty straight forward. You will need cash or additional … (0 comments)
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rehab loans: Rehab Loans - 100% Hard Money Rehab Loans Do Exist - 02/17/08 11:50 AM
With the downturn of the real estate market, I get a lot of inquiries into acquisition and rehab loans. No money down, no cash out of pocket for the rehab, can you use the appraised value of the property and finance everything else? Well, yes I can.
Now before you get excited, let me tell you that in order to make this rehab loan a reality, there are some stringent qualifications. A borrower with a 500 credit score, recent bankruptcy and no money to their name is not going to qualify for a 100% rehab loan. Not a chance. A good credit … (2 comments)
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Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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