Private Loan Program
Long-Term Investment Loan
Terms
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Term of 60 months or less
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6% Interest only monthly payments
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3 points paid at payoff for 2nd Liens and 1 point for 1st Liens
Security
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Loans are First or Second Position
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Lenders Title Policy paid by borrower
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Hazard Insurance with Lender Named as “Additional Insured”
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Attorney drafted Note and Deed of Trust recorded with the County
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Closing at a Title Company
Process
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We email Investor with rough details about transaction to gauge interest/ability to fund (Loan amount date etc)
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If investor is interested, we send Property analysis with, rehab budget, tax data, comps, photos, loan details, etc
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If Investor would like to move forward, we send info to attorney to draft docs for review
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Investor can review Docs, Title Commitment, Insurance, etc
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Investor Wires money to Title Company for Closing
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Investor receives monthly payments by transfer or check
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Once property is fixed and sold, the Title Company will wire the loan amount back to the Investor.
Example of 1st Lien Rental Loan
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Current Value $275,000.00
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Proposed new 1st Lien $200,000.00
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Total Loan to Value 73%
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Monthly Interest only payments (6%) $1000.00
Total paid over 60 month life of loan:
Interest $60,000.00
1 point, paid at payoff $2000.00
Total $62,000.00
Example of 2nd Lien Rental Loan
6103 London Dr. Austin, TX. 78745
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Current Value $425,000.00
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Current 1st Lien $250,000.00
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Proposed New 2nd lien $50,000.00
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Total Loan to Value 71%
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Monthly Interest only payments (6%) $250.00
Total paid over 60 month life of loan:
Interest $15,000.00
3 points $750.00
Total $15,750.00
