How do investors get loans for properties in poor conditions?

[Account Closed]

I’ve read countless times that residential lenders will only loan on properties in good conditions. How do investors get loans on value add deals? Are commercial loans more lenient? 

[Simmy Ahluwalia]

Shivani, these are hard money, short term bridge loans allowing you to improve the property for either sale or rental.  Once the property is "sell or rent" ready, then you can refinance into long term debt if you plan to hold it.