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Our
hard money rehab loans are for those looking to acquire, rehab and
flip properties. These hard money rehab loans will take
into account the ARV (after repair value), and will cover the cost
of rehab and up to six months of interest reserves.
An overview of our
hard money rehab loans:
Maximum loan to value - 60%, this is based on the after repair value
Minimum cash contribution by the borrower - 20% of the purchase
price
Minimum loan amount - $50,000 for our investor rehab loans
Lending areas - California
Our
hard money rehab loans will cover the purchase price, rehab costs, all
fees and up to six months of interest reserves.
Here is an overview of a typical rehab loan made under this program:
Purchase price: $200,000
After repair value: $350,000
Cost of rehab: $30,000
In
this situation, we would be able to put a hard money rehab loan together for
$210,000 (60% of the after repair value). This would be a 12
month loan at 12.5% with no prepayment penalty.
Cash required to close would be about $48,000. You would have a builders control account of $30,000 from which
to draw for the rehab work to be done. This is an easy draw
process, and funds can be advanced for the work to avoid any out of
pocket costs associated with the rehab work to be done.
In
addition, there would be an interest reserve that would cover
payments for the first six months of the loan.
There is no prepayment penalty, and no guaranteed interest. If
the loan is paid off before the interest reserve is used up, you would receive the unused
interest reserves back.
For
a breakdown of numbers based on your transaction, we will need the
following basic information:
Property address
Purchase price
Cost of rehab
Pictures of the property
Square footage and bedroom/bathroom count for the property
We
do not offer pre-qualifications or proof of funds letters. For
more information, or to discuss a scenario, please call us today.
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