How much can I borrow for a deal?
- Loans between 10-50 thousand dollars can be approved the same day if you are a great communicator.
- Loans over 50 thousand dollars require comps, 6 months of bank statements and last year’s tax return.
How long does it take to get funded?
- Most deals can be approved in 24 hours and funded in a few days.
- Funds are wired after the title company prepares the closing documents.
Where do the funds go?
- Escrow. We’ll send funds directly to your attorney or title company. The loan amount is the same amount as the purchase price of the property not to exceed 50% of the market value of the property.
Why don’t I just use profit from previous deals instead of borrowing?
- Stage 3 (experienced, high velocity) land investors are constantly running out of cash because they often finance their buyers. Stage 3 land investors also spend a considerable amount of money in marketing to acquire off market property.
Why don’t land investors use a bank or cheaper lender?
- These loans are too small for most lenders.
What happens if a borrower doesn’t pay the loan back on time?
- The interest and fees accumulate. At 180 days the borrower is in default and can transfer ownership of the property to resolve the debt. This is called deed in lieu of foreclosure.
What happens if the property doesn’t sell in six months?
- We can extend the loan.
- We can team up and sell the property for cash at a discount.
- We can team up and sell the property on a payment plan.
- We can team up and own property long term.
What happens after I (land investor) find a buyer?
- The land investor finds a buyer who signs a purchase agreement.
- After the buyer’s option period has expired and the closing documents are prepared, we’ll sign (and notarize) a lien release with a payoff letter.
- At closing the title company will wire funds to our account.
What rates do borrowers pay?
- Rates can change, but here are the rates as of this writing:
- 1 month or less 10% Flat Fee
- 5% Flat Fee for each following month up to 5 following months
Are there any other fees to consider?
- There is a $1,000 processing fee, paid at closing.
What else should I know?
- There are no monthly payments due until the property is sold.
How about a rate chart?
Use the Cost Calculator to see the rate chart.
How about an example?
- A loan of 8 thousand dollars is borrowed.
- It takes 3.5 months to find a buyer who signs a purchase agreement and waits out their inspection period.
- At closing the lien is released with a notarized signature.
- The loan payoff is 10 thousand dollars.
What documentation do I need to provide?
- Photo ID
- LLC Articles and Operating Agreement
- Signed Purchase Agreement
- Any relevant information about the property, market, and exit strategy
This sounds great. How do I get started?