Learn

New Note

Create a note for yourself from this lesson. Notes allow you to quickly jot down any valuable information you'd like to review later. You can find your notes by clicking on "My Notes" in the profile navigation menu.

Funding

Do Private Lenders Fork Over 100% of the Rehab Costs Up Front?

So you want to do a rehab. You’ve got a private lender lined up. But how does the lender give you the money for the rehab work? Can you get all the money (to close and do the rehab) up front? Or are those two things handled separately?

Hey Moguls, Patrick Riddle here, and I get this question from investors a lot – and today I’m going to address the answer in detail in this lesson.

Are you ready? Then let’s go.

The Short Answer… and an Exception

With private money, you can structure loans so that you receive all the cash you need to do the deal when you close.

That’s how I’ve done every rehab deal, with one exception: I had one lender who was a little skeptical because it was a larger renovation. So for that particular deal, he wanted the loan structured so that the renovation budget was paid out in three draws.

I don’t remember the exact specifics of the structure, but I’ve always been one who will bend over…


Is there a topic you'd like to learn more about? Request a Lesson

Finished?

+ Mark as Learned

Valuable Lesson? Share it:

Request a Lesson

At RealEstateMogul.com, mogul_guarantee.pngwe’re committed to delivering the awesomest, most practical, actionable content to our members … and that a big part of that is getting YOU to tell us what you'd like to learn from us. Since our REI resources are basically endless, we’d love to tailor our upcoming training as much as possible to precisely match what you, our members, really need and want out of us.

jpsig.png Request form