Vanguard Hard Money
 California's Premier Private Money Lender
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What is a REHAB property?

REHAB is short for rehabilitation. These are properties that are purchased with the intent of selling them for profit after the improvements or rehabilitation has been completed.

There are many kinds of REHAB properties. Some properties may only need some cosmetic work. These properties can be ready for resale with just some simple paint, new carpet or perhaps new fixtures.

Other types of REHAB require a little more work. Some properties may be damaged by fire, flood or poor upkeep. These properties are more labor intensive. Some activities may include new roofing, new plumbing, stucco, landscaping, moving walls and even adding on additional rooms or floors.

What does "Fix and Flip" mean ?

A "Fix and Flip" loan is financing to rehabilitate and repair a property intended to be resold for a profit.

What does REO stand for?

Real Estate Owned. These are properties owned by lenders and banks. The borrower defaulted on the loan and the lender took the property back through the foreclosure process.

What does “ARV” mean ?

After Repair Value. We lend money based on the After Repair Value or Future value. We also lend on the "As-Is" value should you find a property that does not need repairs.

What does “Future Value" mean?

The same as (ARV) the Future value is the appraised value of the property as if it were completed today. The appraisal assumes that the rehab is completed within a specific time period and is compared to like properties in the immediate area.

What if no rehab is needed?

If you're buying the property at a discounted price, and no rehab is needed, we will offer you a loan based upon the "as-is value". Our appraiser will be able to provide the current as-is value and we will lend on that as opposed to the purchase price.

What is “Loan-to-Value (LTV)?”

Loan-to-value is calculated when you take the loan amount and divide it by the value of the property. For example, if you have a project that has an (ARV) of $500,000 and you need a loan for $300,000 to complete the project, your loan-to-value would be 60%.

$300,000 / $500,000 = .60 or 60%

How much financing can I receive for my REHAB project?

It depends on the after repair value of your project when completed. We lend using the after repair value of the property as if it were repaired today. We typically lend up to 75% of the after repair value.
Down payments can vary between 15% to 25% of the purchase price.
How well you buy the property is the main factor in our decision.
When we lend 100% of the purchase price or more, the down payment would then be the payment reserves account, rehab and loan cost.

Can I use the equity I have in another property for the down payment?

Yes, we can often cross collateralize with another property you own to bridge the down payment gap.

How fast can I obtain hard money financing for my REHAB project?

The application process takes 24-48 hours after we have received your:

1) Completed and signed application.
2) Income requirements vary, both Full Documentation and Stated Income programs are available.

3) We will then ask you to prepare a line item budget for the repairs to the property.
   Once the budget has been submitted we will order an appraisal of the property.
   The appraisal takes about 1 to 5 business days depending on the type of project.

4) After the appraisal has returned we can prepare documents for you to sign.
    This process takes anywhere from 1 day to 3 days depending on when we receive all the items described above.

Note: We specialize in fast loan closings, and can bring the above timeline down to 3 days on some projects. The key to closings your transactions quickly depend upon having a completed appraisal, escrow instructions, clean title prelim, and proof of insurance.

Do I need experience to get a rehab "Fix and Flip" loan?

Our Fix and Flip loans do not require experience, and they are available to first-time investors.

How much can I borrow?

It depends on your ability to qualify for the financing. We want to make sure that you can afford the monthly payments or have enough payments built in to your loan to cover payments before the resell of the property.

Do I need perfect credit to receive a rehab loan?

No, we understand that you may have credit issues, and your credit is not perfect. We care more about the equity in the property, then your FICO score.

How many projects can I do at once?

We want you to start with one or two projects. As you get familiar with our lending practices, and have a proven track record, we can increase the amount of projects.

Tell me about local realtors in California?

The chances of your purchase offer being approved improves if your communication with the bank is organized. This is why we recommend using a local Real Estate Agent that is seasoned in REO purchases.

What type of properties are good rehab properties?

Single Family Residences are some of the best properties to rehab.

Vanguard Hard Money will also finance the rehabilitation of multi family dwellings, apartments and some light commercial. Call or email us if you have questions regarding property type.

What should I consider before buying real estate?

As an investor, you will need to thoroughly know the market in which you plan on buying a property. This means you will need to be able to estimate the cost of repairs and the after-repair value before bidding on properties, understand the cost of holding a property during the loan phase and the costs associated when selling the property. When you have analyzed your transaction completely, you should be able to estimate the profit or loss on your investment. We suggest you try our “Rehab Deal Analyzer” as a starting point to your decisions.

Additional Rehab Loan Information: