General outline of the financing program as follows:
Fix and Flip (or rent)
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 - 70%-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.
- Flipper 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 10.5%-12%. Depends on size, credit, experience.
- Lender points – 1.5-2.0% at closing.
- Broker fee – 1.5-3% at closing.
- Closing should occur in 1-3 weeks.
- Customary closing costs and requirements - title, property insurance, etc.
Ground Up Construction of Single Family Home(s)
- Land loan portion funded at 50% of current fair market value.
- Construction costs funded at 100% of hard costs. Soft costs sometimes eligible for lending.
- Closing date occurs when permits are in place. Term sheets issued in advance.
- Rate ranges from 10.5% to 11.5%.
- Prior experience is a must.
- Loan to cost limitation is generally at or about 82.5%.
- Borrower type must be a LLC at closing.
- Lender points – 1.5-2.0% at closing.
- Broker fee – 1.5-3% at closing. Customary closing costs and requirements - title, property insurance, etc.
- Investor application package includes, but not limited to detailed plans (with architect's stamp), budget on excel, land purchase contract, personal financial statement of the principals, schedule of completed projects, comparable sales.
- Deal size range – up to $10,000,000.
