Illustrative structure · Private lender · purchase + rehab

$2.1M 8-unit apartment purchase and rehab

An experienced investor is buying an 8-unit building that needs renovation before it can qualify for a bank or agency loan.

Illustrative example. Structures shown are illustrative examples of how these programs are typically arranged. They are not client testimonials or guarantees of results; actual terms vary by borrower, asset, and market. This is not a closed transaction and not an offer or commitment to lend.

Why this structure

  • The building needs work before its income can support a bank or agency loan, so a private lender sizes the loan on the purchase price, the rehab budget and the after-repair value instead.
  • For an experienced investor, the loan is modeled at up to 90% of purchase price plus rehab, capped at 75% of after-repair value.
  • Interest-only terms of 6 to 36 months give time to renovate and lease the units before refinancing into longer-term debt or selling.

Program parameters used

Taken from the sizer's assumptions, reviewed 2026-10-31. Programs change by notice; an advisor confirms current rules before you rely on any figure.
Max loan-to-cost, purchase + rehab
90%Modeled assumption, reviewed 2026-10-31; confirm with the lender.
Max loan-to-after-repair value
75%Modeled assumption, reviewed 2026-10-31; confirm with the lender.
Note rate, experienced investor
9.5%Indicative; set by the lender.
Lender points
1 pointModeled assumption, reviewed 2026-10-31; confirm with the lender.
Minimum interest
3 monthsModeled assumption, reviewed 2026-10-31; confirm with the lender.
Exit fee
0.5%Modeled assumption, reviewed 2026-10-31; confirm with the lender.
Term
6 to 36 months, interest-onlyModeled assumption, reviewed 2026-10-31; confirm with the lender.

Timelines are typical ranges after a complete file and are subject to lender approval, appraisal, title, and diligence. They are not guaranteed.

How it typically unfolds

  1. Step 1

    Confirm the exit

    The advisor checks that renovated rents could support a permanent loan at today's rates, or that a sale would repay the loan and its costs.

  2. Step 2

    Build the rehab budget

    Contractor bids, scope and schedule become the rehab budget the lender reviews and inspects against.

  3. Step 3

    Close with the private lender

    The private lender funds the loan as lender of record and holds back the rehab budget, releasing it as work is completed. Corin never holds or moves loan funds.

  4. Step 4

    Refinance or sell

    Once the work is done and the units are leased, a bank, agency or DSCR loan repays the private loan, or the property is sold.

What a lender will look at closely

  • Minimum-interest, extension and exit fees, which raise the cost if the loan is repaid early or runs long.
  • The rehab budget against the lender's inspections, which decide when each part of the holdback is released.
  • Support for the after-repair value from comparable sales and rents.
  • Whether the permanent loan's DSCR works at today's rates once the units are renovated and leased.

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Other representative structures

All rates, terms, and sizing are indicative estimates for discussion only, are not a commitment to lend, and are subject to lender underwriting, appraisal, credit approval, and program guidelines in effect at application. Corin Commercial arranges loans as a licensed California real estate broker and is not the lender. Corin Commercial, Inc. · Real estate broker, California Department of Real Estate · CA DRE Corp. License #01522444 · Designated Officer: Neeli Khanna