I’m interested in your free ebook 12 investors, professionals and experts to help with real estate.

How can I get a copy of the ebook.

Warner 630 815 9725

P.S. I really enjoy the articles from your site!

We love your blog as well, btw!

Can rehab properties be financed?

That depends on what you mean by rehab properties:

1) Totally rehabbed Properties – Can be financed with conventional lending. This is like going to your local bank and getting loan.

2) Properties needing a total rehab – They can be financed as well. However, not with traditional financing or the conventional lending mentioned above. Banks typically don’t like to take risk like this so, there are other sources for this type of funding.

There is a great article on Financing Foreclosures that will prove to be an excellent resource.

Also, there is a video article on this site as well called How to finance the purchase of Foreclosures. Great video and really gives you some options you can take.

However, these boil down to a few options.

1) Hard money or Rehab Financing. – There are higher interest loans from banks or private organizations that are familiar with the rehab business. They have strict guidelines on who can receive funding, but it is an option. Typically, they will only lend 65 to 75% of the After Rehab Value of an appraisal.

2 ) Private Money – This is going to people that you know that have cash and may be willing to finance your venture at a profit. Stay tuned, we have a product coming out to further explain how to get private money and succeed with it.

3) FHA- Surprisingly, FHA offers a 203K rehabilitation loan, but there are serious restrictions on this for investors.

4) “Subject to” Mortgages – This involves the current owners name staying on the mortgage while you do repairs to the property. The video mentioned above covers this technique and it is actually a really good explanation of how to use this tool.

There are more options, but we will stop there for now.

Thanks for the question and allow us to be a resource for you as you consider expanding in to the real estate investor business.

Talk to you soon,

T