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Apartment Rehabilitation | How to Get Funding For Your Apartment Rehab Project

The purpose of any type of investment is to see a profit – or at the very least create a healthy savings account that can be liquidated as you get older. Some people invest in stocks. Others invest in businesses. And still others invest in apartments.

As an apartment owner, you have two different ways to profit. One is through property value. Not unlike a home loan, it’s not uncommon for property values to increase over time so that your investment turns into a profit. The other is through rent. If your apartment makes enough revenue, you can turn a profit on it much like any type of business.

Increasing Your Property Profits

Savvy investors also know that not all investments are ready as is. In some cases, it may be in your best interests to purchase a property that needs improvements, or to improve upon a current property, because both of these increase that profit potential. This is called apartment rehabilitation, and often apartment rehabilitation loans are used to fund these improvements.

There is significant value to rehabilitation.

  • Often construction costs are less than the increase in value. For example, a $200,000 improvement may value the property at $300,000 or $400,000 or more after the construction is complete.
  • Rehabilitation can make it easier to rent a property and may make it possible to rent apartments for more. This reduces drops in revenue and increases potential future revenue, all at once.

Improving on an existing apartment complex can be a great way to make a serious profit, and increase the future value of the property dramatically.

Finding an Apartment Rehabilitation Loan

There is only one thing standing in the way – financing an apartment rehabilitation project. It can be difficult to fund these projects on your own, and unfortunately many lenders try to avoid complete rehab projects, especially if the apartment you want to purchase is in significant disrepair and requires extensive work in order to be up and running. Even currently profitable apartments may find it difficult to get a loan, simply because rehab is not a guarantee of future income.

That’s why you may have to get help seeking out an apartment rehab lender. At CRE Lender, we know exactly where to look to successfully get you the apartment rehabilitation funding that you need to run your complex. While every rehab project is different, we’re confident that our expertise will help you find the lowest rate possible and the complete funding necessary to get your rehab project off the ground.

If you’re interested in learning more about apartment rehab loans and the options that are currently available to you, make sure you sign up with CRE Lender today and get information on how to get started with your rehabilitation project.

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