Using A Bridge Loan For A Rental Rehab
Not all deals work out as well as the Kewaunee Double-Lot Deal we wrote about recently. But another deal we funded down near Milwaukee is another great example of the power of hard money loans to make great real estate deals happen. We also keep the real estate market active and raise property values.
A buyer came to us with the idea of buying a duplex that needed a lot of work. The sellers were done with owning their home. They were willing to work with the buyer on the price.
The buyers liked the area and saw the potential to do a rental rehab rather than a fix and flip. But banks don’t like to lend on houses that need a lot of work. “Bridge financing” or a “bridge loan” from a hard money lender like Best REI Funding was the best choice for this investor to get the money he needed to buy and repair it.
- In this case, we used the funds from two people in our investor group. They were ready to share the risk and return on a short-term loan. It paid off in just under 8 months.
The person who bought the duplex finished the repairs and got great renters. Then he used a bank to get a traditional 30-year loan that made his long-term cash flow model work.
- And we got our money back with a bit of interest to reinvest in our next short-term REI deal!
Does this sort of real estate investing attract you to expand your asset portfolio? You add a workable amount of risk while creating higher returns over time. To invest Apply Online or give us a call at (888) 341-2282.
Or if you have a deal like this duplex and need a short-term hard money loan, check out our Loan Programs.
At Best REI Funding we try to get Wisconsin real estate investors the money they need to buy and fix homes, increasing both real estate ROI and local home values for everyone.