Rehab loans are one of the most common and useful tools a real estate investor can use to purchase and renovate a house or multi-family residence before selling it for a profit or refinancing the property into a rental. Frequently, rehab loans are short term (6 – 18 months) and are interest-only for the duration of the loan – with principal repayment occurring after their client sells or refinances the property.
This is a great loan for real estate investors looking to achieve a quick turnaround on their investment and get paid. Many lenders don’t understand the unique challenges that come with lending to repair houses and are hesitant to lend to fix and flippers as a result. A good private lender is essential to a successful real estate investor and can be instrumental in completing your next investment project.