Rehab Loans

January 25th, 2012 |  Rehab Loans

ExpressLoan has been offering loans specifically designed for the professional rehabber for several years now. Our program is simple, if you are an experienced rehabber, that is, 2 or more successful rehab transactions in the last year or so, we offer up to 80% of sales price financing.

Here is how that works, we will loan up to 80% of the initial purchase price as long as that does not exceed 65% of after repaired value (ARV). It really is that simple.

In most cases we will hold a predetermined amount of funds to be disbursed to the rehabber either upon completion of the project or as draws as the work gets completed. In this way, you can maximize your financing so that you may be able to work more than one rehab or construction job at the same time.

For those individuals that do not yet have the experience in rehabbing properties we can go up to 70% of the initial purchase price not to exceed 60% of ARV.

In addition to higher loan to values offered experienced rehabbers, we also offer fee discounts to returning borrowers. We can be flexible this way because we are a private / hard money lender.

And please, remember, we are a direct private money lender, we will not send your loan out somewhere else to get it approved or funded as long as the loan amount does not exceed our in house limit of $500,000.00.

If you would like more information or to get started with your next rehab job, please call me, Brent Calver at 800-635-6222 or send me an email to brent@expressloan.com.

Why Private Money?

January 17th, 2012 |  flippers, rehabbers, real estate investors, Why Private Money?

I am often asked; why in the world would someone want to borrow money at these kinds of rates? Here is the easy answer; they cannot or will not or don't have the time for bank financing.

The longer answer is; most of time people that use private / hard money for financing are looking for fast funding and usually need to correct something before they can qualify either the property or themselves for a bank loan.

Another reason is that they are going to sell the property in a short period of time and banks will not loan if they know its a quick flip. There simply is not enough time involved for the lender to make any money.

In almost all cases the property that is being financed with private money has been purchased at a severe discount and the buyer(s) factor in the cost of private money financing. They are able to secure the property and then do what they need to do to make a profit, either by selling at a profit or bringing the property up to bank lending standards so they can take out Permanente bank financing and rent the property for a positive cash flow.

Of course, these answers are not nearly all inclusive but it does show you that private money is used by regular people like you and I to make fast transactions that can turn a profit.

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