As most of you know, the 2020 REI Group sold it’s lending division last month. As a part of that transaction, I’m now serving as a Senior Adviser for Residential Capital Partners. I had a good meeting with them last week, and wanted to give you some updates from our conversation.
The team at ResCap is working to continue adding products to the real estate investment financing line. The most common loan originated last month, was the fix and flip loan. This loan is different from most loan products in the market, because it offers:
- 100% Funding – No Money Down
- Result: you have less cash in the deal. This allows you to leverage your equity and operate more efficiently.
- Up to 70% of ARV
- Result: Many lenders advertise this, but in reality they then require a down payment. In full disclosure, if it’s your first project, or you haven’t done many, we’ll probably reduce this loan to value to 65%
- 10% Interest
- Result: This is one of the lowest interest rates in the market. If you hold a $200,000 loan for six months, the difference between a 10% and 12% interest rate is over $2,000.
- 3 Points Rolled Into Loan
- Result: This allows you to be rewarded for “Buying Right”. We see many investors walk away with literally nothing our of pocket other than their title company closing costs and insurance.
- 9-Month Term
- Result: Peace of mind. Most loans in today’s market are six months in term. You shouldn’t have to worry about extending your loan you project hits any road bumps. I highly recommend you try to exit rapidly, but it is always good to have flexibility.
- Upfront approval
- Result: I highly recommend you get preapproved today. The paperwork is light, and we’ll tell you the maximum (in dollars and deals) we’ll commit to lend.
- Brokers Welcome:
- Result: We’re committed to being a steady presence in the real estate investment marketplace.
These subtle differences impact the return on your projects. ResCap offers rental financing too! We are working on providing a one close product, to take your distressed assets from project to rental without a second trip to the title company.
How It Works:
Don’t hesitate reaching out to the team. You can ask questions below, or call the finance hotline (972) 737-1850. I’m happy to make a personal introduction, so just fill out the form below:
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