Is this a good loan for a first time invetor

[Frankie Lubin]

Hey guys there is a company here in Atlanta that gives out loans to landlords and here are the specifics. I would like to know if this could be something good to get into as a first time investor? The company is call Angel Oak Prime bridge, is this a legit company to do business with?

PROPERTY TYPE:	1-4 Unit Residential Properties
	Non Owner Occupied
LIEN POSITION:	First mortgage only.
STANDARD TERM:	6 -12 months
LOAN-TO-VALUE ADVANCE RATE:	Up to 100% of the total project costs,subject to 65% of the After-Repaired-Value.
DOWN PAYMENT:	No Minimum – See Above
CLOSING TIME FRAME:	5-7 Days
RENOVATION TERM RATE:	15%
PERMANENT LANDLORD RATE:	5% – 9.99% Speak to rep for details

Here is an example of a Loan that we recently completed-

• Contract Purchase Price On Subject Property – $71,000
• Renovation Budget (Cost Of Repairs) – $80,000
• Subject Property’s Appraised After Repairs Value – $260,000
• Maximum Loan Amount On Property (65% of Appraisal) – $169,000
• Actual Loan Amount – $165,350
• Calculation Illustrated
• Purchase Price – $71,000
• Renovation Costs – $80,000
• Closing Costs – $14,350

The closing costs estimate in this example includes the costs of insurance, taxes, pre-paids and all other closing fees. In this scenario the borrower was not required to pay any money out of pocket in order to complete this transaction thus creating 100% financing on the property.

Now after repairs are completed, here is an example of the second closing to refinance the loan to a permanent 30 year fixed rate mortgage.

• The Loan Payoff – $165,350
• The Interest Rate – 5.125%
• The Monthly Payment – $900.31

The initial loan is refinanced using the completed homes appraised value. The closing cost for the refinance are rolled into the new loan and potentially creating a no money out of pocket loan. The customer in this scenario chose to sell the home.