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Rehabilitation
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Rehabilitation

A rehab loan in commercial real estate refers to a specialized form of financing used to fund the renovation, repair, or improvement of an existing commercial property. Also known as a renovation loan or a renovation mortgage, it provides borrowers with the necessary capital to rehabilitate a property and bring it up to desired standards or adapt it for a new purpose. Rehab loans are commonly used for properties that require significant renovations, such as upgrading outdated infrastructure, modernizing interiors, or addressing structural issues. These loans typically cover both the purchase price and the anticipated costs of renovation. The loan terms and conditions may vary, including interest rates, repayment periods, and disbursement schedules, depending on the lender and the specifics of the project. Rehab loans play a vital role in revitalizing and enhancing commercial properties, allowing investors and businesses to unlock the potential of underutilized or distressed assets.
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