Terms

• Term of 12 months or less

• 12% Interest only monthly payments

•  3 month minimum Interest payments 

 

Security

• All Loans are First 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.

 

Case Study - 3001 Norfolk Dr.  Austin, TX. 78745

 

• Purchase price                                                                 $329,000.00 

• Repair Funds                                                                      $70,000.00

• Total Loan amount                                                          $399,000.00

• Sale Price                                                                          $604,000.00

• Loan to After Repaired Value Ratio                                          66%

• Monthly Interest only payments (12%)                            $3,990.00

 

Purchase date: July 2,2020

Sold date: January 14, 2021

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Total Interest paid    $25,484.52