Terms

• Term of 60 months or less

• 6% Interest only monthly payments

•  3 points paid at payoff for 2nd Liens and 1 point for 1st Liens

 

Security

• Loans are First or Second Position

• Lenders Title Policy paid by borrower

• Hazard Insurance with Lender Named as “Additional Insured” 

• Attorney drafted Note and Deed of Trust recorded with the County

• Closing at a Title Company

 

Process

• We email Investor with rough details about transaction to gauge interest/ability to fund (Loan amount date etc)

• If investor is interested, we send Property analysis with, rehab budget, tax data, comps, photos, loan details, etc

• If Investor would like to move forward, we send info to attorney to draft docs for review

• Investor can review Docs, Title Commitment, Insurance, etc

• Investor Wires money to Title Company for Closing

• Investor receives monthly payments by transfer or check

• Once property is fixed and sold, the Title Company will wire the loan amount back to the Investor.

 

Example of 1st Lien Rental Loan

•  Current Value                                                                                         $275,000.00 

• Proposed new 1st Lien                                                                          $200,000.00

• Total Loan to Value  73%

• 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

 

• Current Value                                                                                          $425,000.00 

• Current 1st Lien                                                                                      $250,000.00

• Proposed New 2nd lien                                                                            $50,000.00

• Total Loan to Value  71%

• 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