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Helping to buy multiple properties- being able to purchase property with little or no money down, then refinancing off the appraised value allows the investor to buy an unlimited amount of properties since cash reserves will not be liquidated. Most investors see that the fees of rehab financing loans are regained over time from not paying PMI and more favorable rates for their permanent mortgage due to lower loan to value. |
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Hard Money available to improve the property- an LIP account (Loan in Process) can be established to reimburse the borrower for work performed on the home. The owner will have a home in ready condition to demand the best rents available and not be bogged down in expensive repairs to the home. |
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The loan can close in a business name with the borrower signing a personal guarantee. |
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Interest only payments |
