What are your charges?
We charge three points and 12% interest. This includes all fees, except for a $320 document prep fee / wire fee which is the only separate charge. We don’t have additional fees like appraisal, discount, origination, processing, or underwriting fees. These fees are all encompassed within the three points we charge. It’s essential to compare all fees when evaluating us against other lenders to ensure you’re comparing apples to apples.
What's your loan approval criteria?
We base our approvals on assets, not personal factors. Your credit score, employment status, and tax returns are not a concern for us. We focus solely on the property or project’s quality. If it’s a sound investment, we’ll approve the loan. Your income history, typically needed with traditional lenders, isn’t a requirement because we are strictly asset-based lenders.
When do I receive funds for rehab expenses?
The timing depends on the project’s scope. For smaller renovations like paint and carpet with a budget of $10,000 to $15,000 and a deep discount on the property, we might fund the entire renovation cost at closing. However, most projects involve draws. For instance, if you bought a $150,000 house and need $50,000 for renovations, we’ll provide $150,000 at closing and distribute the remaining $50,000 in three $16,000 draws as you progress. It’s crucial to submit a detailed scope of work, and we expect you to follow that plan. The draw schedule aligns with project milestones, releasing funds as you reach them
What do I need for loan approval?
To get approved, provide detailed photos and preferably a widescreen video walkthrough of the property. You should capture the property comprehensively. Additionally, a thorough scope of work is required. We need to understand your renovation plans to assess the after-repair value accurately. Include specifics like whether you’ll fully remodel bathrooms and kitchens or just replace countertops while keeping existing cabinets. Providing comparable properties that support your estimated after-repair value (ARV) further aids our evaluation. These steps streamline the approval process.
How much cash am I going to have to bring to closing?
Your cash outlay depends on the discount you secured when purchasing the property. If you acquired the property at a significant discount, for example, with an after-repair value (ARV) of $300,000 and a purchase price of $150,000, we could fund the full $150,000 at closing. In addition to the purchase we could fund renovations up to a total of $195,000 on this deal ($300,000 / .65 = $195,000). Any additional expenses related to closing might be your responsibility, but generally, if you’ve obtained a good deal on the property, we can cover 100% of the purchase and renovations.
When do I have to pay the points?
The points are typically rolled into the loan. You can choose to pay them out of pocket at closing if you’d like. But we typically roll those into the loan so that you don’t have to come out of pocket for the points. In our example of a $150,000 purchase price and a $50,000 rehab, $200,000 is the total amount of the loan. Three points would be $6,000 added to the loan. We typically just write up the note for $206,000. Those points aren’t actually paid until the end of the project when you’re ready for payoff.
What property types do you finance?
We primarily specialize in single-family homes suitable for fix-and-flip projects. However, we also evaluate land deals, especially when it aligns with our expertise as builders. Small multifamily properties like duplexes and triplexes, as well as small commercial deals, are within our scope. It’s important to note that we do not provide loans for primary residences; the property must be intended for investment purposes for us to consider it.
Do you guys ever lend over 65% LTV?
If it’s just a single property, the answer is no. We aim to stay at that 65% loan-to-value ratio. The only exception to that would be if you have additional collateral that you’d be willing to put up. So, if you’ve got a rental property that has some decent equity in it, and we could take a second-position lien on that property, then we potentially could adjust the 65% loan-to-value ratio
Office Hours
MON – FRI
8:00am – 5:00pm
Phone
615-358-8820
203 Point East Drive Nashville TN 37216