Options to finance rehab?

4 Replies

I'm looking at paying cash for a house that needs a complete renovation. I have a lender I've worked with on renovation loans before but am wondering if there are any good options out there to finance just the rehab costs?

Hello Jackson,

How much is the rehab? How much did you acquire the property for?

Hey Bob,
I haven't acquired the property yet, but it will be either 25 or 30k. The rehab estimate from my contractor is 45-55k.

@Jackson Tate sorry for the delayed response here but thought I would comment in case others are looking for this type of information.  This is a somewhat common discussion topic.

You can absolutely find loans that will just finance the renovation work on a property - especially if you aren't under a time crunch and already own the property.  The Fannie Mae "HomeStyle" loan is designed for this specific thing.  It's a 30 year fixed rate loan, usually 1/2 the rate of hard money and 1/2 the costs, but it requires a 30 day closing period.  And that's why hard money is in the market - because they can close quickly.  But since you already own the property it sounds like it might fit for you. Tag me if you have any specific questions on this type of a loan.  Thanks!

@Jackson Tate

Are you a new investor or do you have experience?  And are you active in the local real estate community?  If you are having trouble with financing from institutional banks or even hard money lenders I suggest going to local networking events and trying to find a private lender that may be willing to lend the cash for a guaranteed return.  You may run in to a broker who "knows a guy".  It will be a challenge considering the very specific niche you are seeking but if the deal makes sense you should be able to find funding.

Meetup.com is one I recommend (no affiliation)

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here