Pre-Rehab Purchase
What it is
You provide the capital for acquisition including our developer fee and for the rehab budget. Costs are fixed up front. We operate the project. You own the property from day one. On the back end you either keep it at a discount or flip it for a profit.
How it works
We underwrite the deal and present scope, budget, and timeline.
You fund closing and rehab draws. Our developer fee is included in the numbers.
We manage construction, inspections, and delivery of the finished project per scope.
Exit paths:
Hold: you keep the property at your discounted investment price.
Flip: you sell the property. If we list it we are paid a commission at closing.
Guarantees and risk allocation
Budgets are fixed on our side. If we run over, that overage is on us unless scope is changed.
You control major decisions per the agreement. We control day‑to‑day execution.
Typical timeline
3 to 6 months for standard light‑to‑medium rehabs. Heavier projects can run longer.
Return profile
Higher upside than an Option Purchase because you participate in full project economics.
You benefit from acquisition spread, forced appreciation, and, if selling, a profit at exit.
Cash outlay and exposure
You fund purchase and rehab. Capital sits in the project until refinance or sale.
Title is in your entity from day one, so you are secured by ownership rather than by a note.
Risks and how they are handled
Market or leasing risk at exit. Mitigated by buying right and fixing costs up front.
Construction risk. We operate, carry trade relationships, and eat overruns that are within scope.
Title or permit issues. Addressed in diligence prior to close with clear go/no‑go gates.
Best for
Investors who want maximum upside with ownership and professional execution.
Capital that is comfortable with project risk in exchange for preferred return plus equity.
Not ideal for
Investors seeking fixed income or short commitments. Use Private Lending for that.
Buyers looking to finance the initial acquisition or rehab. Financing the finished product with a DSCR is possible.
Documents typically used
Purchase agreement
Construction scope and budget with fixed‑price schedule
Listing agreements as needed