How do I know how much to pay for a property?

The amount you pay for a property is up to you as a private investor, but we recommend that you pay no more than 65-70% of After Repaired Value (ARV), minus the cost to repair the property. 
Example:  If the ARV of the property is $100,000.00 and the Repairs will cost $15,000.00, the most we would suggest you pay is $50,000.00 to $55,000.00.

How much can I borrow?

This again will vary some depending on the quality of the deal and your personal financial situation, but we will loan up to 70% of the After Repaired Value (ARV) of the property.  Take again the example above of a property worth $100,000.00 with $15,000.00 in repairs.  We might loan as much as $55,000.00 towards the purchase of the house with an additional $15,000.00 held in escrow for you to repair the property. 

Will you also finance the repairs?

Yes we will.  We will reimburse you for repairs in up to three draws as the repairs are completed.

What are your credit requirements?

We will look at your credit, however it is only one aspect of the approval process and we are much more concerned with the property itself and the amount of cash you have available to handle the project.  We do not have a minimum credit score requirement.

Can I finance closing costs and fees?

Never on the first deal, however once we have established a good working relationship we can work with you to reduce your out of pocket expenses.

How much available cash will I need to qualify?

It depends on the size of the deal, but a good rule of thumb is 6 months worth of payments plus one-third of the cost of repairs. 

What if I don’t have enough cash, can I use my credit?

We will take into consideration any available lines of credit with banks and credit card companies when considering your application.

Do you loan on rental property?

Yes. If this is your exit strategy, then we will need to know that you can get approved for long term financing and/or may have additional requirements

What type of insurance do I have to carry?

At closing, we will require a one year, paid in advance, Builders’ Risk certificate of insurance with a vacancy clause. Also, Windstorm and/or Flood Insurance may be required depending upon the location of the property. If windstorm is not included in your hazard insurance policy, a separate policy may be required and can be obtained through the Texas Windstorm Insurance Association. For your convenience, our affiliate company, Investors Insurance Group, LLC may also be able to assist you obtain the required insurance.

Can I occupy the house or have a tenant in the house while I'm doing the rehab work?

No, according to the Deed of Trust, no one is allowed to occupy the home before the end of the loan term.

How do you fund your loans?

We primarily fund our loans with our own capital however we do some via an investment fund.  We retain 100% of deals we originate.