subject: Renovo Financial - Rehab Full Circle! [print this page] In the down state of the economy I wonder where jobs, growth, and economic development are going to come from. I cant help but get excited when I enter a completed rehab project and think about the full circle of solutions and economic benefits provided. Take the following scenario.
An investor, maybe someone who lost their job, decides to buy and rehab a home. The home they buy is a foreclosed, vacant, vandalized, and some would say ugly house. The first economic benefit is the bank who currently owns the house gets liquidity and a non performing asset off their books. Because the property is usually vacant and distressed, deemed unlivable, the investor is unable to get conventional financing to buy and rehab the house. This creates opportunities for private lenders, like Renovo Financial, who provide purchase and rehab money in one loan to investors. Rehab Lenders provide liquidity to investors so they can do several rehab projects a year.
The next step in the rehab process is the actual rehab. Rehabbing houses provides huge benefits to the economy. Every rehab provides jobs for laborers, architects, contractors, etc. In addition, a typical gut rehab spends about 40 to 50 thousand dollars on materials which provides support to the manufacturers and sellers of those products. Cement, tile, lumber, windows, and the list goes on. Once the rehab is complete, the neighborhood is the next beneficiary. No longer is a vacant house on the block. Vacant houses provide opportunities for vandalism, squatting, and drugs.
In the end, and sometimes the greatest part of the rehab process, is the smiling new homeowner who buys the brand new rehabbed property; a place to call home. A new qualified home owner got a loan from a conventional lender, helping our mortgage industry rebuild.
To give an example, Renovo Financial provided a rehab loan to a married couple, an airline pilot and real estate agent, to buy and rehab a house in Chicago. The investors gut renovated the vacant house and are now selling to a local Chicago Police Office. The benefits to the economy, neighborhood, and personal lives of the investor and new home owner keep Renovo Financial excited to run and improve their business daily.
by: jenniferfleming2020
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