Renovation Permits and Requirements

I currently reside in a 3-bedroom, 2.5 bath house.  We have an unfinished basement and recently discussed the idea of finishing it to add two bedrooms and a living space. We began our research on requirements for residential renovations, such as adding additional sleeping and living space.  Legal requirements vary by each state, so we needed to look at our specific area.

To start any basement or electrical renovations we were considering, we would need to get permits. According to Zillow, “A lot of people start by talking to an architect or a designer without understanding their options. These professionals will charge you for information that the city or county can tell you for free.  Go to your governing municipality’s planning office, tell them what you’re think about doing and ask what your options are.”  The municipality’s planning office would be able to tell you the proper steps in order to add additional living space to a current residential property.

In addition to these permits, this department should be able to tell you the requirements for a room to be considered a bedroom.  Most areas have a specific room size requirement, egress requirements, and a height requirement. This is important to understand before listing a property as an additional room can increase the property’s value.

In most areas, if the proper permits are not issued, the owner can be charged a fee and may have to remove any and all renovations that were completed.  Our county has a list posted of permits needed in order to start renovations on a residential property.  Permits ensure building codes for constructions, plumbing, electrical, heating and cooling, and other property aspects meet the minimum standards, as well as to reassure future homeowners that they purchased a safe property.

What other steps are important to take before starting renovations?

100% Rehab Investment Financing and Immediate Loan Draws Offered by ReCasa

You certainly know by now that ReCasa Financial Group is unique in private lending and hard money circles by offering 100% purchase and 100% rehab financing.  What you may not know is that ReCasa also provides a first draw to investors the day after their loan closes.  This prevents an investor from having to come out-of-pocket with initial costs related to the repairs.  This allows for qualified investors to truly purchase, rehab, and then sell or rent a property with no money down and no personal money needed to begin the rehab process.

Waiting on loan draws can decline a real estate investor’s possible return on investment (ROI) because it delays their ability to complete the project.  As a real estate investor, if you are not able to obtain your loan draws immediately after closing, you either have to wait to start rehabbing your investment property, or will need to use your own money.  With ReCasa Financial Group’s rehab loan program, you can start growing your ROI instantly.

Read more about calculating ROI here – http://recasafinancial.com/what-will-your-investment-give-you-in-return/

As a real estate investor, what do you want from your rehab loan?

Homes Need Rehabbed to Adjust to Today’s World

Forbes recently released an article discussing the importance for real estate renovations on older homes and their success for real estate investors.  Many of America’s homes were built years ago and are outdated for those looking to purchase a home today.  According to the National Association for Home Builders, 52% of homes were built before 1980.  These older homes are usually not energy efficient and usually do not have open floor plans, things that current house buyers are typically looking for in a new property.  As a rehab investor, you should make your rehab investments adapt to today’s technology.

Read the Forbes article here – https://www.forbes.com/sites/forbesrealestatecouncil/2019/06/12/how-something-old-can-become-something-new-again/#1068ce3d7fb9

With the cost and regulations associated with new builds, rehabbed properties are becoming more successful, especially since new builds don’t always appeal to everyone. We have mentioned in previous posts that kitchen and bathroom renovations usually have the highest return on investment, but have you had success with updating home offices?  “According to Gallup, 43% of Americans work remotely at least part of the time.” This is one of the points that Forbes mentions as something to consider when rehabbing an older investment property.  What else have you noticed about rehabbing older homes?

Customer Service is Important

When you research people and/or companies to work with, is customer service something you take into consideration?  If not, it should be.  It is important to work with people you trust and can get a hold of when needed. You should always look at recommendations when considering a new person or company to build a relationship with.  Not only should you follow this for your rehab investment business, but for personal areas too.

You don’t want to work with realtors, brokers, home inspectors, insurance agents, and other real estate professionals that are impossible to get in touch with as this could hold up the process of investing in a property, which in the end could cost you more money.

One great aspect of working with ReCasa Financial Group is the company size.  We may be a smaller company, but that makes us unique.  When you call ReCasa to speak to someone regarding a loan, you do not go through a never-ending animated recording including pressing multiple numbers to be connected to someone (or if you are like me, pressing 0 until someone answers). When you call ReCasa, you will talk to a live person.  We take pride in being able to speak with our customers and knowing our customers personally, instead of treating someone as a number.  We are there to help real estate investors get the process of financing the rehab quickly.

Meet ReCasa Financial Group here – http://recasafinancial.com/meet-recasa/.

We still do things similar to larger financing companies.  We still fund large loan amounts.  We still close a large number of loans each year.  We also service all the loans, so you know who is handling all your paperwork.  What do you know about the company servicing your real estate loans?

Common Questions for ReCasa Financial Group

Lately, I have been getting questions from real estate brokers regarding brokering our 100% rehab financing.  We love working with real estate mortgage brokers, as well as other real estate professionalsMortgage brokers can earn up to 2 points on every funded loan with ReCasa Financial Group.  Real estate investors create recurring business, so mortgage brokers can keep earning broker fees with repeat business.  Also, we can personalize our rehab loan package with a broker’s contact information as soon as we build a working relationship with him or her.

Find out more here – http://recasafinancial.com/mortgage-brokers-can-earn-up-to-2-points-for-each-rehab-loan-closed-with-recasa-financial-group/

I have also been asked what happens to the rehab loan after the 9-month term.  The easiest thing for a real estate investor to do, is to refinance the loan if they are unable to pay it off at the end of the term.

Find out more here – http://recasafinancial.com/exit-strategy-for-real-estate-investors/

What other questions do you have about building a relationship with ReCasa Financial Group?