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More2Lend Investor Rehab Financing
1. M2L Rehab
Borrower has completed less than 5 profitable transactions in last 12 months.
| Pre Pay: | none |
| Loan Amounts: | up to $200,000 |
| Term: | 8 Months |
| Rate: | 12.99 to 17.99 |
| LTV: | 65% to 75% of purchase price, or A.R.V. |
| Points: | 5+ |
| Underwriting/Loan Documents: | $3,445 |
See ratesheet and submission form for other parameters.
2. M2L Rehab Premier
Investor has completed 5 or more profitable transactions in last 12 months
| Pre Pay: | none |
| Loan Amounts: | up to $400,000 |
| Term: | 8 Months |
| Rate: | 12.99 to 17.99 |
| LTV: | up to 80% of purchase price, or A.R.V. |
| Points: | 4+ |
| Underwriting/Loan Documents: | $3,445 |
See ratesheet and submission form for other parameters.
Additional Requirements:
- Property must fall at or below disposition value, as determined solely by More2Lend Financial.
- Investor must demonstrate ability to repay or refinance in the event of inability to sell the property
- Investor must always personally guarantee all loans, regardless of title vesting
- M2L can use A.R.V. for loan purposes, with appropriate documentation, draw schedules, etc. Rehab funding portion is escrowed with 3rd party and is only released as outlined below.
- To review any submission, M2L needs a minimum of:
- Complete 1003 application
- Full tri-merge credit report
- Color appraisal
- Purchase contract
- Submission form
Examples of Qualified Rehab Loans:
1. Investor A - M2L Rehab Premier
Investor A has bought and sold at least 5 properties within the last 12 months, each with a substantial profit. M2L confirms profit levels with:
- Initial purchase final HUD,
- Sales final HUD,
- Review of rehab costs associated with subject properties, and
- Confirmation of documents with title/escrow or appropriate real estate entities.
Investor A locates an REO or distressed property and negotiates a purchase price of $100,000. Investor submits a loan submission to More2Lend Financial. M2L confirms that $100,000 is at or below the disposition value for other situated properties in the area. The Investor can now secure the loan immediately for up to $80,000 or if the investor chooses, the investor can secure rehab estimates from a licensed contractor to increase the loan to cover rehab expenditures. If the investor chooses to secure a rehab estimate from a licensed contractor and the rehab bid comes in at $50,000, the Investor may request a loan amount of 80% of $150,000 or $120,000. The difference between the initial purchase and the rehab loan amounts, in this example $40,000, are escrowed in a control fund and are disbursed at up to 3 stages of the rehab, if and only upon:
- Physical inspection of completed work
- Required lien releases by all sub contractors have been secured, and
- Appropriate county inspection sign offs, confirming completion, have been secured.
There is a fee for the 3rd party escrow process.
See ratesheet and submission form for other parameters.
2. Investor B - M2L Rehab
Investor has not bought or sold any properties in the last 12 months and is just starting out.
Investor B locates an REO or distressed property and negotiates a purchase price of $100,000. Investor submits a loan submission to More2Lend Financial. M2L confirms that $100,000 is at or below the disposition value for other situated properties in the area. The Investor can now secure the loan immediately for up to $65-75,000 or if the investor chooses, the investor can secure rehab estimates from a licensed contractor to increase the loan to cover rehab expenditures. If the investor chooses to secure a rehab estimate from a licensed contractor and the rehab bid comes in at $50,000, the Investor may request a loan amount of 65-75% of $150,000 or approximately $105,000. The difference between the initial purchase and the rehab loan amounts, in this example $35,000, are escrowed in a control fund and are disbursed at up to 3 stages of the rehab, if and only upon:
- Physical inspection of completed work
- Required lien releases by all sub contractors have been secured, and
- Appropriate county inspection sign offs, confirming completion, have been secured.
There is a fee for the 3rd party escrow process.
See ratesheet and submission form for other parameters.
In either loan process, the rehab investor must have skin in the game in the form of hard cash, no matter how good of a deal the investor negotiated. This is non negotiable and aligns the investors interest with M2L's and provides for a mutually beneficial relationship.
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