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 experienced borrowers 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. Also good for borrowers who want to put up less cash to close. It is also good for borrowers who happen to have longer then budgeted Rehab times. Rehab delays can destroy a borrower'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) up to 70% of ARV. On Flips |
| Origination Fee (Points) | NONE |
| Interest Rate | Start at 4.99% to 9.99% interest-only monthly payments. Balloon payment option available. Lender charges a 5% to 7% partner fee when the property is sold. |
| Pre-Payment Penalty | None after 90 days. |
| Term | 6-18 months (1% fee per 3-month extension) |
| Time to Fund | 7 to 11 business days |
| Credit | 400 and above Credit accepted |
| Qualifications & Requirements |
|---|
| 550 + Credit. Scores below 620 will require a min 35% down payment (or equity) in property and no open bankrupty. No history of recent foreclosure |
| Liquid Reserves are not required but borrower will get the best rate and terms with liquid reserves |
| Experience required |
| Completed Loan Application |
| $499 Processing Fee |
| No Appraisal required. We do an internal property valuation |
| Personal Guarantee is required |
| Loans can be made on Investment or business properties only. We do not finance primary residences |