Loan Terms

 

I am based in Portsmouth and lend to experienced real estate investors in the Hampton Roads area. Take a few minutes to read about my lending terms.

Experience Definitions

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Experienced Investor

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New Construction - you must have completed at least 3 new construction projects, where your company is named on title within the past 3 years.

 

Fix Projects - you must have completed at least 5 renovation projects where your company is named on title within the past 3 years.

 

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Mid-Level Investor

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An investor who has completed a total of 2-3 new construction or fix and flip projects within the past 3 years in which your company name is on title.  Mid-Level Investors are still eligible for financing, we just may have additional application requirements and there may be points added to your loan.

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Mentor Eligible Investor

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An investor who has completed less than 2 renovation projects within the past 3  years in which their name is on title is eligible to participate in our Mentor - Investor Program.  Inquire for details.
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Hard Money Lending Terms

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100% Financing

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• Experienced Investor - pays no points (5 fix or new construction projects, not combined, within the past 2 years)

• Mid-Level Investor - pays 1-2 points (3 - 4 fix or new construction projects, within the past 2 years)

• Property funded at closing; rehab budget held back in escrow by the lender at closing and paid in draws after each phase of work is inspected & completed​

• Maximum loan amount - 70% of the ARV

  • Ex: ARV = $200K. Purchase & renovation total loan amount = $140K

• No Monthly Payments - all interest is paid at the sale or refinance of the renovated property at closing

• Term (two choices)

  • Up to 4 months for a flat fee of 10% of the loan amount

  • Up to 6 months for a flat fee of 12% of the loan amount

 

What Borrower Does Pay

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• Borrower acquisition closing costs, including required:

  • Attorney loan document prep & review fee: $450 - $650 (billed at closing)​

  • Lender's title, builder’s risk, & commercial general liability insurance

  • Lender wire funding fee: $40 – for initial wire

• Inspection/Draw fee: $199

• Refundable Deposit:

  • No deposit to hold funds for 1 week

  • $500 refundable deposit to hold for 2 weeks

  • $1000 refundable deposit up to 4 weeks, case by case basis

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Borrower Funds Required for Project

 

Above closing costs, funds to front each draw until reimbursed, 10% of total rehab budget for unexpected repairs, funds to cover operating costs (utilities, lawn mowing, HOA due's, etc..)

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Termite/moisture/crawl inspection required by licensed pest company before loan can be funded.

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Types of Projects We Fund

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1. New construction

2. Fix & Flip

3. Bridge Fix & Flip Loan - short-term financing for the purchase and rehab of investment properties

4. Residential properties in the Hampton Roads area