I am subscribed to an industry newsletter and was looking through it the other day when a stat jumped out at me. According to this story approximately 60% of home purchases in the past few years have been foreclosure, short sale or other distressed situations in which the property is sold in less then its best condition. This means there are a lot of properties that need work being sold. When investors purchase these types of properties, often times they do so with a hard money rehab loan.
Specializing in hard money rehab loans in California, we are able to assist with loan requests of this nature. We are typically able to help investors finance up to 65% of the completed value of a property. This is done through a rehab loan that contains a builders control and an interest reserve feature. Essentially the full project is funded and impounded into the loan at the time of acquisition. Structuring loans in this manner allows for higher leverage of the project as it enables the loan to value ratio to be calulated based on the value of the completed property.
These private money rehab loans can help acquire and rehab many different types of projects. From entry level projects to luxury home rehab loans - and everything in between. We can even assist with mixed use, multi-unit or commercial rehab loans. In addition, we can help with a wide variety of project types, from the small cosmetic fixer all the way up to a construction completion project.
With the number of homes being sold that are in need of rehab, these types of loans can offer investors a way to leverage their existing funds and take on more profitable projects. For more details you can view our page on hard money rehab loans or you can contact us directly today!