This short-term financing option, usually two years or less, provides access to a property’s equity for capital improvements or repairs by eliminating the need to raise funds from personal sources. The goal is usually to increase lease rates and/or reduce operating expenses to increase the value of the property and make it eligible for standard financing.
A borrower’s expertise, net worth, and liquidity, as well as the location and quality of the property are key considerations for this type of financing.