Small Balance, High Leverage, Rehab/Bridge Program

[Fred Shatzoff]

Fico: 660+

• This lender allows the borrower to have $10,000 of unpaid debt, but no more than that!
• No more than four 60-day lates in the last 2 years.
• No felonies! No fraud!
• Anyone over 25% owner of the entity has to be a Personal Guarantor.
• It will be a soft pull on an entity with a Personal Guarantor, with no effect on credit.
• The lender can go off credit score for the majority owner or the middle score of credit score of the entity if no Personal Guarantor.

-Loan Terms: 12, 18 & 24 months, fixed interest only-Loan Size: $75K to $1 Million

• Loans outside of CA are capped at $600,000

-Max LTC/LTV:

• The lender will finance up to 85% LTC, Loan to Cost & 100% of the construction (done in draws).
• The loan amount cannot exceed 70% of the ARV (After repair value) of the property.
• Purchase w/ no rehab = 70% LTV. Refinance as is = 65% LTV.

-Interest Rate: 7.95-11.25%;

• Interest rate is determined by investors' experience, location & the leverage they are requesting.

-Property Types: Only 1-4 unit investment properties (Single Family Homes, 2-units, 3-units, 4-units, condos, and townhomes).-Pre-Payment Penalty: None!-Use of Funds: Purchase, Refinance, Cash-Out Refinance & Rehab-Asset verification: Depends on borrowers' experience. ...Recent 3 months of bank statements are required.-Experience Requirement/ROI:

• Lender counts investment properties rehabbed and sold in the past 2 years as experience.
• Property cannot be purchased longer than 3 years ago.
• The lender will only consider 1-4 unit investment properties as past experience, not commercial properties!
• The lender is lending to Standard Tier borrowers 0-4 flips and pro borrowers 5+ flips in the past 2 years.
• Return on investment has to be:

..........Tier 4 = 1.2 ROI..........Tier 3 = 1.15 ROI..........Tier 2 = 1.10 ROI..........Tier 1 = 1.0 ROI-Experience Tiers:

• Tier 1/Pro = 10 + exits, ARV cap of 75%;
• Tier 2/Plus = 4-9 exits, ARV cap of 75%.
• Tier 3/ Standard = 1-3 exits (Construction restriction if the borrower is doing work to the foundation, adding or removing walls, adding square footage, or if the rehab budget is more than 50% of the purchase price, they will be capped at 5% less on the max ARV).
• Tier 4/Access = No experience; 12% + (Construction restriction is limited if the borrower is doing work to the foundation, structure, adding or removing walls, adding square footage, if the rehab budget is more than 50% of the purchase price, they will be capped at 5% less on the max ARV.)

-Liquidity Requirement:

• All borrowers need down money and closing costs.
• Large deposits Do Not have to be seasoned.
• Tier 1 Reserve Requirement= $25,000.
• Tier 2-4= $15,000.
• The reserve requirement is NOT in addition to down money and closing costs.

-Lender Points: 1.5-2.5 lender points (depends on borrowers credit, experience, and deal size)-Lending Territory: AZ, CA, CO, CT, DC, FL, GA, IL, KY, MA, MD, MI, MN, MO, NC, NJ, NV, NY, OH, OK, PA, SC, TN, TX, VA, WA, and WV-Closing Time Frame: 5-15 days based on borrowers' experience! -Appraisal/BPO:

• This lender typically just orders a desktop BPO on a purchase, which costs $350.
• On a refinance they do a full appraisal which is $600-$700 if the property is owned for longer than 6 months.
• If we are dealing with a severely damaged property a full appraisal will be required.
• The lender uses Mercury Appraisal Company.

-Special: NO JUNK FEES!

• This loan program is only for bridge and rehab deals.
• This is not a program for ground-up construction.
• The lender's closing fee is based on experience but ranges from $499 to $1,195.
• Pro and plus borrowers can have up to 5M of loans at one time with this lender.

-Docs: The lender does not need a lot of docs at all.-Draw Process:

• Draw Fee: $199 per draw
• The borrower can do this through the website or an email address. Fill out a scope of work for what has been completed, send it in & then an agent comes out.
• The draw-free cost is taken from the disbursement of their draw. Keep copies of receipts and invoices from the contractor.
• Lien waiver requested on every draw so they cannot claim a mechanics lien on the property.

-Extra:

• Cash-out must be used for real estate purposes.
• This lender allows the borrower to close in a personal or entity name!
• FL, MN, OH, VA & NJ deals must close in an entity name.
• The lender can work with Foreign Nationals but they need proof of permanent residency.
• The lender can lend on assignment fees.
• Wholesalers cannot be related to any of the parties.
• Seller concessions over 15% require due diligence.
• The lender also has a permanent rental loan product, 640+ fico score, need 700+ for 75% LTV.

To Find out More Contact Fred Shatzoff 551-272-9066 or