General outline of the financing program as follows:
Revitalize's fix and flip (or rent) loan programs are tailored to provide real estate investors with quick access to funding. Our lending partners are primarily institutional and have greater resources than local private lenders with reduced capacity. Our clients do not have to wait for other loans to pay off in order to get their deals funded on a timely basis.
- Purchase - 80%-90% of purchase - borrower in for 10%-20%.
- Borrower type must be a Corp of LLC at closing. Personal Guarantee is required.
- Renovation budget - finance equals 100% of the renovation cost
- Builder must be approved based upon track record of completed projects. No bonding is required.
- Financing occurs over 4-5 draw downs.
- After Repaired Value (ARV) appraisal required prior to closing. Total financing cannot exceed 65% of the ARV.
- Rate ranges from 8.5% to 12%. Depends on size, credit, experience.
- Lender points - 2-4 at closing.
- Broker fee - 2%. No upfront fees to the broker (Revitalize Funding)
- Closing should occur in 3 weeks.
- Customary closing costs and requirements - title, etc.
- Borrower profit equals ARV (selling price) minus payoff to lender (and costs) minus the initial deposit on purchase.
