We work with new investor with NO experience
| Recourse Line of Credit | Non-Recourse Line of Credit | |
|---|---|---|
| Minimum Experience | We work with new investors, NO EXPERIENCE, but to get best terms, require 2 fix n flip or rental property within the past 3 years | 2 flips/builds or active rentals within the past 3 |
| Individual Loan Size | $50K - $2.5MM | $50K - $1MM |
| Line of Credit | $500k - $10MM | $2MM - $100MM |
| Max Loan-to-Value | 70% of ARV | 75% of As-Is Value |
| Max Acquisition Financing | 90% loan-to-cost | 85% loan-to-cost |
| Max Rehab/Construction FInancing | 90% rehab budget | 85% rehab budget |
| Interest Accrual | Full accrual on max loan amount | Balance accrual only on drawn funds |
| Eligible Property Types (non-owner occ.) | SFR, 2-4 units, Condos, Townhomes, Multi-family | SFR, 2-4 units, Condos, Townhomes |
| Minimum Interest | 90 days minimum interest | 90 days minimum interest |
| Min Credit Score Requirement | 620 | 660 |
| Valuation | Full interior appraisal | Desktop valuation for SFR/Townhomes <$250k, full appraisal for others |
| Exposure Limits (LOC) | Renovate or build multiple properties up to the approved Limit. | |
| Draw Balance | Available |
Acquisition Price: $100,000
Anticipated Rehab Budget: $50,000
After Repair Value: $200,000
Acquisition Funding Max LTC: 90%
Rehab Funding Max LTC: 90%
After Repair Value Max LTV: 70%
| Initial Loan Advance at Acquisition | $90,000 (acquisition price * acquisition funding ltc factor) |
| Rehab Funds Available To Draw | $45,000 (rehab budget * rehab funding LTC factor) |
| Max Total LTC | $135000 (aquisition LTC + rehab LTC) |
| Max Total LTV | $140,000 (after repair value * LTV factor) |
| Max Total Loan Amount | $140,000 (we lend to the lesser of LTC or LTV) |