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Rehab Commercial Hard Money Lenders


paperfree Aditi Bansal

Updated on Thursday, June 01, 2017

Rehab hard money loans are also referred to as renovation loans. This type of hard money loan allows the borrower to finance equally the buying and the rehabilitation of a property through a single loan. Rehab hard money lenders are short-term lenders who have a higher level of the acquaintance about rehab projects than traditional commercial hard money lenders.

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Many houses are distressed because there has been no activity there. Sometimes, the houses might be damaged by natural causes or flood or even leaks. Therefore repairs need to be completed for people to live in or purchase. Rehabilitating a property is whereby you will take a property which is in bad shape, and fix it.

Commercial hard money lenders know that most people can’t have enough money for a new house. However, most also want a lovely house. Many people who cannot afford a new house always resort to buying a house that has already been fixed up.

Rehab commercial hard money lenders

Rehab hard money lenders are present to assistance you if you want to buy a distressed property. They will give you the funding to buy the distressed property and have room for the rehabilitation of the building. Most borrowers’ objective is to resell the property after fixing it up. They usually sell it to someone who will buy and live in it.

Rehab commercial hard money lenders lend money to financiers or contractors who need to buy a property, fix it up to the state that it needs and then sell that property. They don’t lend money to homeowners.

Non-rehab commercial hard money lenders are entirely different from rehab commercial hard money lenders. The difference is the repair costs. Non-rehab commercial hard money lenders will not offer you with the renovation cost. They just lend you the money to complete the transaction.

Rehab commercial hard money lenders also look at properties as what the can become, not what they currently are. On the other hand, non-rehab commercial hard money lenders look at a property on what it currently is and not what it will be in the future. Usually, when you are working with rehab commercial hard money lenders, they will need you to spend the money. The money you spent will then be refunded to you for the repairs you have done.

For you spent money to be refunded, you will need to have to submit your receipts of the rehabilitation project. Inspector will go and inspect the property to make sure it is in good condition. The refund will then be done.



This page with a focus on Hard Money Loans, Rehab hard money was shared by Aditi Bansal.

 
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