Rehab Loans Explained

What is a Rehab Loan? Rehab loans or what others would call Renovation Loans is around since before. TV shows like Flip this House and many other TV programs have recently made these types of loans more common to the average Joe and have more and more individuals inquiring “What is a Rehab Loan?”

Most conventional lenders such as banks won’t finance on properties that has necessary substantial amount of work. Rehab loans have fulfilled some of the needs especially to investor type buyers with a number of bank-owned and distressed properties flooding the market.

When understanding What is a Rehab Loan, we need to know the overall guidelines for Rehab Loans vary from lender to lender, but they all have a few general rules to keep in mind.

  1. You must have some of your own money in the deal; what we like to call “skin in the game.”
2. Does your team have any experience Rehabbing property? You need reliable, experienced contractors.
3. Is your construction budget realistic?
Be reminded that most Rehab Lenders will look at your budget and factor in additional contingencies. We often find that borrowers don’t plan budget adequately for labor because they are planning on doing the work by themselves.
As an investor having a great relationship with a reliable Rehab Lender is a must. Liquidity is the name of the game in real estate and typically with most Rehab Lenders once you have a few deals under your belt with them the easier it is to obtain financing.
 

What is a Rehab Loan at Sunrise Lending Group?

Sunrise Lending group sets apart from the many other lenders out there because it has that we specialize in large loan amounts and are very creative in structuring our loans. Our Rehab Loan program offers loan amounts of over 3 million dollars while other programs top out at 400k.

We will typically lend up to 65% of the ARV (after renovated value). One of our team members will personally walk the property often within 48 hours from your loan submission. We have our funds available and we do not have to wait to get investor approvals. We are based in Northern California, however we lend throughout the state. Our Rehab Loan programs are helping investors create some very successful endeavors. We look forward to hearing from you for all of your Rehab loan requests, in addition to our many other private money loan programs.

For more information contact Beau Eckstein at
800.570.6584 or email: beau@privatemoneysanfrancisco.com

San Francisco Bay Area’s private money bridge loans

We’re a direct private money lender situated in the San Francisco Bay Area. We specialize in jumbo loans as well as bridge loans all through California, CA. We offer interim financing when traditional banks will not lend. The actual lot/land doesn’t have to be free and clear. The current value of your Bay Area property can be added to the construction costs and the new construction loan can pay off the loan on the property or home, allowing the equity within the land to be considered in the after improved value. We’re among the fastest growing private bridge lenders in the San francisco Bay area. Bridge loans usually are temporary and are secured by the borrower’s present Bay Area property that has not yet sold. We make use of our understanding and great people skills to help investors, brokers, contractors and owner/builders create/produce successful projects in the Bay Area. We have successfully closed loans in the Hollywood Hills as well as surrounding areas. We provide equity based construction loans for Bay Area and owner builder construction loans as well as construction to perm loans. We offer hard construction loans for the borrowers/debtors who have a strong equity/collateral in their Bay Area property or home. We offer our products in the San francisco Bay Area all through California. Quick closings are possible.

For more information contact Beau Eckstein at
800.570.6584 or email: beau@privatemoneysanfrancisco.com

Land Sales in the San Francisco Bay Area

Land Sales in the San Francisco Bay Area

San Francisco Bay Area Real Estate has a scarcity of homes for sale and as a result builders and developers are looking for land in the San Francisco Bay Area.  San Francisco Bay Area construction lenders are now working with local builders and have begun to lend again for development deals in the Bay Area. There is a fair share of lots for sale in the San Francisco Bay Area, which means this is an advantageous time for sellers to list their properties again.

We are a real estate firm in Walnut Creek with a focus on Bay Area land and construction loans.

This includes construction financing and private money loans. We utilize our knowledge and great people skills to help investors, brokers, contractors and owner/builders create successful projects.  We also have other funding sources, such as: pension funds, banks and other lending conduits in the San Francisco Bay Area. This ensures the best deals possible for our Bay Area clients. To learn more please contact us (800.570.6584) or fill out the quick loan application on our Home page (or application at the right) and we will get back to you within 24 to 48 hours.

 

For more information contact Beau Eckstein at
800.570.6584 or email: beau@privatemoneysanfrancisco.com

Hard Money Loans in San Francisco Bay Area

Hard money loans in San Francisco Bay Area  by Construction Loan Pro, are utilized by real estate investors looking to purchase properties that are undervalued; usually single family residences that need to be rehabbed and sold for profit.
Often, being able to leverage capital by using hard money allows the investor to control more properties.

Typically hard money lenders will lend on the equity of the subject property.  Most hard money lenders in San Francisco will lend up to 70% of the purchase price.

There are also hard money lenders who will lend a second mortgage, which would cover the down payment along with the funds needed for the renovation costs. These types of loans are called“SAM”, (shared appreciation mortgage), or we often refer to it as “GAP Funding”.  These hard money loans share in the profit when the property sells.

Hard money is also readily available for refinancebridge loans as well as ground-up construction.

 

For more information please contact Beau Eckstein at
800.570.6584 or email him at beau@privatemoneysanfrancisco.com

San Francisco Private Money Construction Loan

Loan Term: 12 Months

Here’s an example of the recently financed project in San Francisco that when completed will feature 6 high-end condominium units and 1 retail commercial space.

This project was 45% complete when the loan request entered my table. The developer initially issued a letter of intent from a major bank, but the bank couldn’t carry out when it came time for funding. The project was stalled for 6 months.

Construction completion loans especially a multi-unit project) tend to be challenging because of mechanics liens, obtaining the title insurance coverage, as well as narrowing down the actual budget so the developer doesn’t fall short.

Our fund has specialized in construction lending for the previous eighteen years and this enables usto put together unique deals. The developer for the San Francisco project was so pleased with our team that requested if our construction manager could carry on and consult on the remaining work.

As a matter of interest, we were able to fund this as a 2nd mortgage behind a 1.6 million dollar 1stTD!

For more information please call 925.852.8261 and find out how we can fund your next project in the San Francisco Bay Area.

Jumbo Hard Money Construction Loans San Francisco

Do you have an existing property or home that requires a significant remodel? Have you discovered an excellent investment property or home that needs to be totally rehabbed?

Sunrise Lending Group provides a unique renovation loan program for investment properties in the San Francisco Bay Area and all through California.

The majority of California renovation loan programs just go to a loan amount to 400k. There is a large market for high end luxury market remodeling loans.

For an instance,  take a look at San Francisco properties with an average sales price of more than $900, 000. Thus, all the rehabilitation or renovation loan programs are virtually removed in the San Francisco market.

The question after that becomes how does the investor obtain a jumbo renovation loan in California?

Primarily, listed below are a few questions to determine if your loan request will be feasible at this time:

— How much money can one provide on the table?

– Have I successfully rehabbed/renovated before?

– What is my exit strategy?

– What is the particular fire sale value of the property when completed?

– Is my budget realisti and practical?

– Am I putting the best finishes on the property?

– Do I possess any other property that I can cross collateral with my first deal?

– Is my property in an extremely desirable area?

Being an investor in the luxury market there is a much greater risk aspect compared to rehabbing  entry level properties. Nevertheless, if|in the event that properly planned with the help of, the actual rewards are usually huge.

We have come up with an excellent team at Sunrise Lending Group and would be pleased to help you structure your upcoming investment. Whether you are in need of a good acquisition loan or if you currently own the home or property –we’re right here to assist. We also specialize in construction completion loans, bridge loans, and large renovations loans.