Illinois Rehab Lenders for Residential Rental Properties

Minnow Loan, a local Missouri direct private lender, funded a $144,665 1st lien position loan for the purchase and rehab of a single-family home in Millstadt, IL. We funded 80% of the $155,000 purchase price, while the Borrower contributed 20%. The renovation budget was $20,665. With an after-repair value estimated at $300,000, our loan-to-after-repair value was 48%. This Borrower had strong investing experience and a good credit score, but this is our first deal with them. They used an additional property as collateral and cash at closing to secure the loan. The Borrower had a small rehab budget to clean up the property and plans to refinance with a long-term lender. We closed the deal quickly, which was crucial since the property was purchased off-market. The subject property is approximately 1,370 square feet set in a 7.01-acre lot. It was vacant at closing. The interest rate was 12.5% and we charged 3% origination points. The loan term was set at 12 months. This SFR purchase and rehab loan was funded in July 2024.