Episode 67: Chicagoland Rehab Financing Without Using Hard Money or 203k Loans

Possibly the biggest consideration when taking on a rehab project is how to finance the deal. We’ve all considered hard money, FHA has their 203K loan program, and we’ve probably seen a late night commercial or two. Perry Farella of Prime Lending talks us through a loan program which is a cross between a conventional loan and hard money, something that you don’t even need to refinance out of once the property is stabilized. Listen in as Perry tells us more about this product and how it can be best used to fund your next Chicago rehab. Connect with Mark and Tom: StraightUpChicagoInvestor.com Email the Show: [email protected] Guest: Perry Farella of Prime Lending Sponsor: ChicagoREIA   Sponsor: Appeal.tax   Link: How 2 Fund Renovation Blog   Link: Be Your Own House Contractor: Save 25% without Lifting a Hammer   ----------------- Guest Questions Background 5:00 How do you qualify for rehab loans? 9:45 How do you determine and support the ARV? 11:30 What is the closing timeline for these loans? 13:45 How does the draw process work for construction? 17:45 Do you need to refi out of this loan product? 21:00 Are there price thresholds these loans work best for? 22:00 What goes wrong? 27:00 Hot investment neighborhoods? 31:00 What would need to happen for credit to tighten? 38:45 Competitive advantage? 42:45 What is one piece of advice you’d give a new investor? 43:50 Wrap Up Questions What do you do for fun? 44:20 Self development recommendations? 45:20 Quality resources? 47:20 How can we learn more about you? 48:00 That’s our show! Thanks for tuning in! If you want to make the most of your investment, connect with us at https://www.gcrealtyinc.com/. ----------------- Production House: Flint Stone Media Copyright of Straight Up Chicago Investor 2021.