Loan Product
Rehab and Value Add: Buy It Underperforming. Stabilize. Refinance.
A rehab or value add loan covers the purchase plus the renovation budget. You close on the property. You draw money as the work gets done. You exit by selling or by refinancing into permanent debt. The institutional sweet spot here is $10M and up. The network covers small balance relationship files at the floor and large value add transactions stacked across senior debt, mezzanine, and preferred equity.
What the Network Covers
- Multifamily value add ($1M to $100M)
- Mixed use and small commercial value add ($1M to $50M)
- Hospitality reposition and PIP ($5M to $100M)
- Industrial and flex value add ($5M to $100M)
- Specialty asset value add ($1M to $50M)
- Heavy rehab and partial ground up ($1M to $50M)
Loan Snapshot
- Loan Amounts
- $5M to $500M+ across the network
- Typical Sweet Spot
- $10M+
- LTC
- 70 to 85% program dependent
- Term
- 12 to 36 months, interest only
- Closing Time
- 10 to 45 days typical
- Property Types
- Multifamily, mixed use, commercial, hospitality, industrial, specialty
- Geography
- Nationwide, drawn from the 200 plus active capital source network
- Rates
- Rates depend on the deal. Submit your file or jump on a call and I will give you a real number.
Rates depend on the deal. Submit your file or jump on a call and I'll get you a real number.
What Makes a Deal Fundable
Realistic stabilized value backed by comps. Detailed scope of work and budget. Experience or a strong general contractor. Clear exit (sale or permanent refinance).
Permanent Takeout Planned On the Front End
Most value add files refinance into agency multifamily, CMBS conduit, life company, or HUD permanent debt. We map the takeout before the bridge closes so leverage, term, prepay, and recourse on the bridge match what comes next.
Frequently Asked Questions
What is a commercial rehab or value add loan?
A commercial rehab loan covers acquisition plus a renovation budget on a commercial property. Funds are released through a draw schedule as the work is completed. The exit is typically a sale or a refinance into permanent debt (agency multifamily, CMBS, life co, or HUD). Term is 12 to 36 months, interest only, with reserves for the construction period.
How does a value add multifamily loan work?
Value add multifamily debt funds the purchase of an underperforming apartment building, plus the capex needed to upgrade units, raise rents, and stabilize NOI. Once the property hits the targeted DSCR (typically 1.20 to 1.25x), it refinances into Fannie Mae DUS or Freddie Mac Optigo permanent debt for non recourse, 30 year amortization.
What LTC do value add lenders offer?
Most bridge and value add lenders quote 70 to 80 percent of total project cost (purchase price + closing + renovation budget). Strong sponsors with track record can stretch to 80 to 85 percent. Above that, mezzanine or preferred equity fills the gap.
Can I roll the rehab budget into the loan?
Yes. The renovation budget is funded into a holdback or draw account at closing and released as work is completed. The lender underwrites the as is value, the as stabilized value, and the cost to stabilize. You bring equity for the gap and the renovation funds out of the loan.
What is the minimum value add loan amount?
The institutional sweet spot is $10M and up. The network funds smaller relationship files starting around $1M and large value add transactions up to $100M+ stacked across senior debt, mezzanine, and preferred equity.
Ready when you are.
Send me your file or pick up the phone. I answer 7 days a week.