The Borrower
Qualification Requirements
Determining Down-Payment
Borrower A
• Has done 3+ loans with NOI
• Local
• Net Income is more than adequate
• Liquid capital is more than adequate
• Moderate net worth
0% - 5% ARV
These are local, repeat-borrowers, with moderate to good net income/net worth. The more completed deals and the better they're doing financially, the less money they put down.
These are local borrowers with 0 - 3 previous loans with us, and moderate net income/net worth. The more loans completed, the better the net income/net worth, the less money they put down.
Borrower B
• Has done 0-3 loans with NOI
• Local
• Just enough net income
• Just enough liquid capital
• Moderate to low net worth
5% - 15% ARV
Out of towners put twice the amount down. The lower the net income and net worth, and the fewer loans they've done with us, the more of their own money they put down towards the purchase.
Borrower C
• First time borrower
• Out of state
• Monthly net income exceeds
interest
• $500K net worth
5% - 15% ARV
• Net Monthly Income - Enough to cover the monthly interest
25% of our loans require an extension. To extend, the borrower pays all accrued interest. We want them to have enough cash on hand to be able to pay 6 months' interest if necessary.
• Liquid Capital - Enough to pay 6 months of interest
The Property
Qualification Requirements
Determining Loan Amount
25% of our loans require an extension. To extend, the borrower pays all accrued interest. We want them to have enough cash on hand to be able to pay 6 months' interest if necessary.
Borrower must be able to pay all costs and still net 10% - 30% of the sale price. Costs include; purchase price, closing, interest, ca
25% of our loans require an extension. To extend, the borrower pays all accrued interest. We want them to have enough cash on hand to be able to pay 6 months' interest if necessary.
• Net Monthly Income - Enough to cover the monthly interest
• Required repairs - Light to moderate
Borrower must be able to pay all costs and still net 10% - 30% of the sale price. Costs include; purchase price, closing, interest, ca
• Neighborhood - Safe and properties are selling
Type A
• Very good neighborhood
• Moderate repairs needed
• Repeat borrower
75% - 80% LTARV
These are local, repeat-borrowers, with moderate to good net income/net worth. The more completed deals and the better they're doing financially, the less money they put down.
Type B
• Decent neighborhood
• Moderate repairs
• First-time borrower
65% - 75% LTARV
These loans are in less popular locations or for borrowers who've done fewer loans with us in the past. 75% LTARV is our average loan amount.
Type C
• Marginal neighborhood
• Significant repairs needed
• First-time borrower
55% - 65% LTARV
These loans are used to add security to any situation. From time to time, circumstances arise when an unorthodox loan makes sense. We use a lower LTARV to facilitate it.