Down Payment And Closing Cost for Fix and Flip..
We can only come in with a DP if there is 30% or more equity in the property at the time of purchase (to be confirmed by an appraisal). In other words, you are able to buy the property for 70% of the current fair market value, or better.
BA. There must be a minimum of $20,000 net profit in the project for my firm.
B. It is strongly suggested that the rehabber already have their exit strategy worked out, so that once the rehab work on the property is completed, the (pre)qualified buyer you have previously secured and vetted is ready to open escrow and buy the property,
The deal has to have already been approved by a hard money lender, for the bulk of the financing.
C. Our DP system is based upon the customary “80% Acquisition/100% Rehab” loan structure offered by Hard Money Lenders;
however, we can go up to 30% DP if the deal meets all our other criteria.
D. The rehabber is required to bring 5% of the purchase price to the transaction for: earnest money deposit, closing costs, and a modest reserve account.
E. Our DP Program is limited to experienced and seasoned rehabbers.
F. The Program functions as a joint venture partnership, starting with the acquisition, through the rehab, to the resale of the property. We are not involved in, nor do we intend to interfere with, the rehab project. We normally run all deals through an LLC, however the final decision about whether we opt to run any particular deal via an LLC is at our sole discretion.
G. The rehabber and our firm share profits on a 50/50 split basis, of the EXISTING/INITIAL equity resulting from the purchase of the property. The rehabber winds up with 50% of the existing/initial equity, and 100% of the additional equity that they create in the value-add phase. Specifically, we limit our DP Program to investments where the rehabber is seeking to undertake a mainly cosmetic flip, i.e. pretty much limited to paint, cleaning, minimal repairs, minor upgrades, etc. In other words, the entire job is estimated to be completed, the property listed and sold, in a matter of a few months. This of course assumes that the ARV (After Repair Value) is high enough to justify undertaking the project in the first place.
H. The JV partnership automatically dissolves upon the resale of the property.
JV DP investor receive the initial capital invested as well as 50/50 share of the equity/profit.
We may be able to get this done, give me a call 856-412-8056 or email firstname.lastname@example.org
Hey Zane! This sounds doable, reach out.
Nick Hubbard | Managing Partner
Visit our website for the related funding programs offer :
Hi Zane Graser :
Visit our https://davidwkleeglobalfunding.com , download the related Online Loan Application Form to proceed accordingly.
Registered Business Associate and Finance Broker