Investment Mortgage Guy

For 13 years I have been helping investors build wealth thru real estate. During this journey, I have become an expert in rehab loans for investment properties. These loans work great for a couple of reasons: First, they give you the funds for both the purchase AND rehabilitation of your investment property. With a traditional purchase of an investment property, you are required to put 20% down and finance improvements out of your own pocket. You could quickly be looking at $20,000 to $40,000. I don’t know about you, but I would prefer to keep as much money as I can in my pocket as long as the deal is still fundamentally sound. Secondly, most banks I work with will use the future value of your investment property after the renovation work has been completed. This allows you to possibly finance 100% of your purchase. For example, If you purchase a property for $50,000 and your rehab work required is $25,000, if the property appraises for $100,000, our bankers will lend you $75,000 which would be enough to finance your entire project.

One of the tricks with this rehab loan is finding realible sources for financing. I have found that banks will do the program for a while and then things will change and they will no longer be able to help you. Many times early on in my career I found myself in a pinch when a local bank pulled the plug on a deal no different than one I closed with them last month. My experience has been that they will run out of funds to lend or new people come to the bank who no longer think the rehab loan is a good program. Because of this, I am always working with new banks to establish other options for this program. I never want to be without at least two outlets for any deal.  

If you have interest in learning more about my rehab program, check out the REHAB Loan Page of my site or call me at 952-808-2820.

Rob Bonahoom

Mortage Coach