Are you looking to invest in commercial properties in California? Do you want to renovate or rehab an existing property to increase its value and returns? If yes, then you must be aware of rehab loans, their benefits, and how they work.

Rehab loans are a type of commercial mortgage that provides funding to investors and borrowers to renovate, repair, or improve a property. These loans are specifically designed for investment properties that require significant rehabilitation to achieve their full potential.

 

At TREC Commercial Mortgage, we offer custom lending solutions for rehab loans that cater to your unique financial needs. Our lending experts work closely with you to analyze the property, assess the scope of work, and determine the most suitable financing options.

Here are a few things you need to know about rehab loans for commercial investment properties in California:

1. Types of Rehab Loans

There are two types of rehab loans: traditional commercial mortgages and hard money loans. Traditional commercial mortgages are long-term loans that require a down payment, good credit score, and collateral. Hard money loans, on the other hand, are short-term loans that require less documentation, but have higher interest rates and fees.

2. Eligibility Criteria

To be eligible for a rehab loan, you need to have a good credit score, a solid business plan, and a clear scope of work. The property should be located in a desirable area and have the potential to generate high returns. You should also have sufficient cash reserves to cover the down payment, closing costs, and any unforeseen expenses.

3. Loan Amount and Terms

The loan amount for a rehab loan depends on the scope of work, property value, and the borrower's financial situation. At TREC Commercial Mortgage, we offer loan amounts ranging from $100,000 to $10 million, with terms ranging from 6 months to 25 years. We also offer flexible repayment options that cater to your cash flow and investment goals.

4. Benefits of Rehab Loans

Rehab loans offer several benefits for commercial investors, such as:

- Increase in property value and returns

- Opportunity to renovate and customize the property

- Potential for higher rental income and occupancy rates

- Access to funding for properties that require significant rehabilitation

- Ability to compete with cash buyers and other investors

5. How to Apply for a Rehab Loan

To apply for a rehab loan, you need to contact a commercial mortgage broker, such as TREC Commercial Mortgage. Our lending experts will guide you through the application process, which includes submitting a loan application, financial documents, and a scope of work. We will then evaluate your application and provide you with the best financing options that match your financial needs and investment goals.

 

Rehab loans are an excellent financing option for commercial investors who want to rehab their investment properties in California. These loans offer several benefits, such as higher returns, customization, and access to funding for significant rehabilitation. Contact TREC Commercial Mortgage today to learn more about our custom lending solutions for rehab loans and how we can help you achieve your investment goals. To learn more about the services we offer, please click here. To get in touch with us, please click here or call us at (209) 456-7825