Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
5y
Marshall,
In some cases you can use a traditional loan as long as the repairs are mostly cosmetic in nature and do not pose a safety or health risk. There are some cases where the repairs are noted but they do not pose an issue to where it is listed as "Subject to" and the bank can close. You can even get away with some smaller repairs if the lender approves and the title company holds the smaller repairs in escrow until completed.
If you do not own a primary you can also use the 203K and Fannie/Freddie rehab loans but they are for primary. In some cases you can buy bigger using that loan to get into a bigger home rehab laon.
Traditional lenders like banks may have construction loans. Smaller local banks will be the best place to look.
Hard money lenders, these are lenders that specialize in lending to real estate investors. The charge high rates but base the loan more on the value of the hard asset (hence the name).
Private lenders; friends family and close associates that know and trust you.
National real estate lenders (not sure what to call them) Lima On, Lendinghome, Dominion Financial. This is a relatively new class of lenders that has sprung up to meet the needs of real estate investors.