VALUE ADD LOANS
WHAT IS A VALUE ADD LOAN?
Traditional banks and institutional lenders often see distressed real estate as too risky and will refuse to provide financing for such properties. Distressed can mean the property is in need of major improvements or has a high vacancy rate. Where banks refuse this type of loan is where value add financing steps in.
This type of financing requires diligence and creativity, and capital can be provided for the acquisition, renovation, and lease-up of a property.
