Rehab lending can be tricky. Whether you are a private money/fix & flip lender or a traditional rehab lender selling loans to the agencies, your risk with these traditionally small loans is almost more trouble than with your large or heavy rehabs. The contractor and project feasibility/bid are usually not as sophisticated as large projects, so contractors may not be licensed or experienced to do the project, and the bid submitted often has glaring holes based on the inspection or appraisal.
Knowing what you are looking at and knowing the costing for items is a skill-set that comes with years of experience and an in-depth knowledge of construction. CFSI’s team is experienced in the risk mitigation space; we see things others may miss, which can save you thousands of dollars and hundreds of hours of headaches.