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: firstname.lastname@example.org