All Forum Posts by: Skyler Lehman

Thank you for the reply! I want to start with residential properties multi family and do the value add method. Buy rehab or Reno, refinance and repeat! The lenders that get a share of your property are potentially the same ones that would put into the Reno costs? Sorry I am new just trying to learn 

@Skyler Lehman

It depends on the type of property and the type of loan you are receiving. 

With commercial properties, bridge lenders and certain other lenders will finance the property's renovations. With residential properties and hard money lenders, they will usually have an option for financing the property's renovations as well.

There are a couple of caveats: first, most lenders will require a property down payment. Second, the renovation/construction budget is usually structured on a draw schedule, where the funds are held in escrow and released as work is committed. In other words, you need to complete the work to receive the funds (you need to have money to cover the time between the completion of the work and the receipt of the draw).