Is a Rehab Loan Right for You?

Over the last few years, the popularity of purchasing real estate that needs renovations has become increasingly more popular. HGTV, DIY and other cable channels have dedicated programs that showcase investors that purchase properties, renovate them and then put them on the market. Programs like Rehab Addict, Flipping Vegas and Flip This House are currently popular with the viewing audience and show exactly what can be done with properties that are not “turn-key”. These programs have also made the rehab loan very popular for many people ready to enter the real estate market.

Still what really is a rehab loan? As the words suggest, a rehab loan is just that. It’s a loan taken out on a property that needs work. The borrower is able to purchase the property plus have the resources to renovate at the same time. Most traditional lenders are less likely to finance a loan on a property that may need a lot of work. Rehab loans have become the best way for investors and buyers to purchase bank-owned, distressed and often-time abandoned properties that just need renovations to breathe new life into them.

Like with any sort of loan that you are considering, you need to understand the general guidelines for taking a rehab loan out. Here are a couple of things you need to consider if you decide a rehab loan is the right thing for you:

1. “Skin in the game”. This is a term that basically means that you need to have a share of your own money in the deal.

2. You need experienced and reliable contractors to do the renovation job on the property.

3. You fully understand the time and cost of the project and that your budget is realistic to do the job needed to renovate your property.

For many hard money rehab lenders like SFR Ventures, Inc., your budget is a key component of success. Not only do you need to be spot on, you must also have contingency money available in the event of unforeseen costs and repairs. With any project or property, there is always the possibility of issues that arise that can be a costly mistake if you aren’t prepared to cover their costs.

One good place to start is with SFR Ventures, Inc. While there are many other lenders out there, SFR Ventures, Inc. specializes in large loan amounts. We have the necessary experience and creativity to structure our loans. We are able to offer loans from $400,000 to upwards of over 3 million dollars. We oftentimes lend up to 65% of the ARV or After Renovated Value of your property.

Our team is ready to help you with your loan needs. Often within 48 hours of your loan application being submitted, one of your team members will take a look at the property and check it out. The good news is that we have the funds available. With readily available funding, there’s no need to wait for investor approvals.

SFR Ventures, Inc. is located and headquartered in Northern California, but we do lending throughout the state. If you feel that a rehab or renovation loan is right for you or if you have any additional questions, call Beau Eckstein at 925-852-8261 or visit SFR Ventures, Inc. on the internet at http://reiloanpro.com.