Where Do Residential Real Estate Investors Turn As Their Bank Lines Falter?

As the new construction condo market took a turn

, commercial developers began to wonder where to invest next. One developer in particular, Bedrock Homes, has found their answer in residential fix and flips. It may not be as glamorous as a 20-story tower, but vacant, foreclosed homes is where this condo developer has found profit. After funding their first few deals with their own cash, growth beyond a couple projects at a time became limited. While banks sat idle, Bedrock found Renovo Financial, a private rehab lender, focused 100% on providing capital to residential rehabbers. It is great to know that I have a reliable partner to fund our projects Michael Harper says of Renovo. When ever we get a contract on a new deal, I know right where Im sending it! The most recent deal for Bedrock was a single family home in Logan Square. Renovo Financial provided Bedrock with 80% of the funds to buy and rehab the property. Bedrock expects to sell the fully renovated single family for $275,000 and profit roughly $75,000 after all expenses, closing costs, and financing charges. Its great to be part of the housing recovery, says Harper. Our customers couldnt be happier with our renovated homes at such affordable prices.

While the real estate market was booming from 2003 to 2007 many local banks in Chicago provided lines of credit to residential home builders and real estate investors. Since the real estate crash, almost all banks have pulled their lines of credit from small investors. So, now exists a catch 22; there is tremendous opportunity for residential real estate investors to snatch up great deals, but limited liquidity and capital in the market for them to work with. Hard money lenders are a great source to supply opportunistic rehabbers with funds for their projects. Renovo Financial plans to back hundreds of real estate investors on their rehab projects. They now provide many investors with the opportunity to buy and rehab multiple projects at once. As an experienced rehab lender, Renovo can close deals for their clients in just 10 days, and are willing to lend not only up to 80% of the purchase price of a property, but also 80% of the rehab cost as well. Private lenders, like Renovo, are the entrepreneurs who will help revitalize the depressed real estate market.

by: jenniferfleming2020

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