Partnered Lending
This product caters to the needs of investors who would like a lower rate and partner with a lender on Fix and Flip deal. You as the investor still call all the shots on the project. The advantage of this agreement is that the investor will receive a much lower interest rate and low or no points on the funds borrowed. In exchange the Lender would receive a Partner fee of 2% to 5% of the final sales price of the renovated property. These loans can be win – win for both Lender and the investor borrowing the money.
Who is it for?
With our Partnered Lending program, we as the lender will share the risk with the borrower by offering rock bottom interest rates. This product would be for borrowers who want to lower their risk by reducing their monthly borrowing costs during the rehab period. It is also good for borrowers who happen to have longer then budgeted Rehab times. Rehab delays can destroy a borrorower's budget. In the event that your project is delayed our below market rate under 5% can save your deal from going into the red.
| Rates & Terms | |
|---|---|
| Loan Amount | Up to 100% of Cost (Purchase + Renovation) or 70% of ARV. On Flips |
| Origination Fee (Points) | Up to 0% - 3% of loan amount (payable at closing) |
| Interest Rate | Start at 4.99% to 9.99% interest-only monthly payments. Balloon payment option available. Lender charges a 2% to 5% partner fee when the property is sold. |
| Pre-Payment Penalty | None after 90 days. 1% if prior to 90 days. |
| Term | 6-months (1% fee per 3-month extension) |
| Time to Fund | As little as 14 days |
| Income Verification | "No Income" options available. |
| Qualifications & Requirements |
|---|
| 650 + Credit Score. No Income options available |
| Liquid Reserves (cash, stocks, bonds, money market) must equal at least 4% of the loan amount. Seasoned for two months. |
| Two Years Tax Returns |
| Completed Loan Application |
| $575 Processing Fee |
| $60 Wire/Courier Fee |
| Personal Guarantee worth at least 40% of the loan amount. |
| Borrower must have Debt to Capital ratio less then 85% (As calculated by Total Debts/Total Asset Value) |