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We are able to help
with rapid rehab funding in the state of California. We focus on
the collateral value of the property, and can lend up to 65% maximum of
the after rehab value.
We do require you have
a minimum investment in the property equal to 20% of the purchase price
or more. Typically, we ask that you bring the cost of rehab, 6
months prepaid interest and points/fees to the table, while we fund the
acquisition cost.
A typical acquisition
and rehab loan might look like this:
ARV: $190k
Purchase Price: $100k
Rehab Cost: $12k
Under a scenario such
as this, we may be able to write a loan for $110k. 6 months
of interest would be $6875. Points, fees, title, escrow would cost
approximately $14k. So in this scenario, the total needed to close
is $132,875. You bring $22,875 cash to the table, we fund $110k.
$12k is held in a
builders control account to be disbursed for the rehab work to be done.
$6875 is held for the first 6 months worth of interest, so you have no
payments for 6 months.
The term of the loan is
12 months, and it is priced at 12.5% (interest only payments).
There is no prepayment penalties. We do not offer proof of funds
letters on this product. Please call us directly to discuss your
scenario, or send an email. With some basic information, we can
let you know pretty quickly whether or not we can help. Our
contact information is located on your left, directly under the site
navigation.
If you do not have cash
to bring to the table, we can work with cross
collateralization if you own additional properties with equity.
Under this scenario, we are typically able to fund the rehab to be done
(which will be fund controlled), the acquisition, loan fees and six
months interest on the loan by making a blanket loan, encumbering
multiple properties.
If you require 100% funding on the
acquisition cost with no down payment or cross collateralization, our rapid rehab funding is not the program for you.
Look into our nationwide rehab loans.
They will finance you up to 100% acquisition, plus up to 70% of the
after rehab value, although the turn time will be a bit longer and the
credit requirements more stringent.
If you fall outside of
these guidelines, and the property is located in California, you may
want to visit our Private Money Loans page. We can
potentially help secure the rehab loan you are looking for even if you
do not fit into the above mentioned guidelines for rehab loans.
Contact me directly for
more information, or complete our contact
form to get the approval process started immediately. Your
information will be kept confidential and will not be distributed or
sold.
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