In the 4th episode of the Private Lending Insights podcast, I interviewed John Santilli from Rehab Financial Group (RFG) to learn all about their unique 100% financing loan program for residential real estate investors. Their program funds 100% of both the purchase price and rehabilitation costs, capped at 70-75% of the after-repair value. They lend in 18 states which includes most of the East Coast, plus parts of the Midwest and Texas. Watch the video, listen to the interview, or read the summary below.
Interview Summary
Key Features of Rehab Financial Group’s Programs:
- Lending in 18 States: AL, CT, DE, FL, GA, IN, KY, MA, MD, MO, NC, NJ, OH, PA, SC, TN, TX, VA
- Populated metropolitan areas only
- No rural locations or towns far from metro areas
- Not currently lending in Cleveland and Baltimore
- No down payment required
- Loan Amounts: $100,000 to $1,000,000
- After-Repair Value: up to 75% for borrowers with experience and excellent credit
- Up to 65% loan-to-after-repair value for borrowers with little to no experience
- Most loans are capped at 70% of the after-repair value
- Minimum FICO score: 650
- Loan Term: 9 to 12 months, with 3-month extension option
- No prepayment penalties
- Interest Rates: 11.25% to 12.75%
- Closing Costs: 2-3% of the loan amount for origination fee, processing / underwriting fee, title and settlement fees.
- Liquidity Requirements: Borrowers must show liquidity of at least 25% of the rehab budget plus closing costs, which can be sourced from savings, liquid investments, or lines of credit.
- Experience not required but inexperienced borrowers must have good credit and additional liquidity
- Exit Strategy: Flip or Rent
- Brokers Welcome
Project Types and Underwriting
- RFG supports both fix-and-flip and buy-and-hold projects, with a portfolio currently split evenly between the two.
- Rehab budget cannot be more than 100% of the purchase price.
- New investors are encouraged to start with smaller projects to build experience.
- Large-scale or highly complex rehabs typically require vetting of contractors and additional scrutiny.
- Ground-up construction loans are also available with specific conditions, including a 90% loan-to-cost ratio and a mandatory contractor review.
Rehab Draws
- Draw requests are issued in arrears, based on completed work inspected and verified by a third party inspection company
- Borrower must have enough funds to cover the first phase of the rehab project
- Draws are paid typically 24 hours after the inspection is reviewed
About Rehab Financial Group
Rehab Financial Group prides itself on in-house servicing and long-term client relationships. The company was founded in 2009 and operates with a lean team of approximately 30 staff members. They manage a private mortgage fund made up of accredited investors, and they also have a bank line of credit. They hardly ever sell loans.
Market Outlook for 2025
Despite challenges like high interest rates and slower sales of high-value homes, the company remains optimistic about 2025. Anticipated decreases in interest rates and stable rental demand should create more opportunities for investors.
Visit Rehab Financial Group’s profile and contact them directly.
Connect with John Santilli on LinkedIn.
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