Suppose a real estate investor needs under $100,000 for 3 months or less, say for a quick flip or to preserve his equity in a property that is in default. Maybe his credit is a little questionable, and he needs the money quickly. Examples of where quick capital like this can prove critical include: flip a property under contract; preserve the equity on an investor-owned property (owned free and clear) that is facing foreclosure, or an overdue lien, or his property needs cosmetic fix-up prior to listing it for sale.
The good news is that, unlike hard money loans, with Flip & Gap First Position Funding (FGFPF), there are
1. NO Upfront fees
2. NO “skin in the game” funds (down payment, etc.) required
3. NO Reserve account funds required
4. NO Monthly payments
5. NO Credit checks
6. NO Appraisal required
Flip & Gap First Position Funding
Up to 90 Days, Up to $99k
Three main ways investors use Flip & Gap First Position Funding to their advantage:
1. Quickly flip a property—or fix/flip or buy/hold—if the math works out OK. The REIer just has to make sure they have already-lined-up exit-strategy money to get EMD Funding out of the deal in a timely fashion.
2. Save an investor-owned property, and the equity tied up in it, from imminent loss due to a looming foreclosure, overdue lien coming due very soon, court judgment, get a property out of probate, etc.
3. Help cash-poor investor make pre-listing, fix-up improvements to a run-down property (that they own free and clear) to bring it up to code or cosmetic (paint, landscaping, curb-appeal items), etc. in order to sell it faster and/or garner a higher selling price.
Capital is available, nationwide, with the following parameters, to Real Estate Investors (REIers):
* 1-3 Months
* Employ our capital for quick flips with certain low balance mortgage or lien payoffs; or can
used by investors with properties they own free & clear to clear up liens, loan, probate, lawsuits
* Up to 40% LTV (Loan to Value) of FMV (Fair Market Value), less 10% costs = 36% effective LTV
* No upfront or hidden fees. Quick funding decisions
* No points, no interest, no monthly payments. Not a loan.
* Funding is a cash-on-cash type investment
* N.O.O. only (Non-Owner-Occupied), investor-owned properties
* Investment must be secured by a 1st position note/deed
* Funding transactions are normally processed by our processing and title/escrow professionals
Cash-on-cash returns (markups) are as follows: 1% per day, with a 30-day minimum. What follows are absolute, not annualized, percentages.
Time Cash-on-Cash Return Examples (based on $225k FMV property)
30 days = 30%* $20k invested x 30% = $ 6k = $ 26k paid back
$40k invested x 30% = $12k = $ 52k paid back
$90k invested x 30% = $27k = $117k paid back
60 days = 60%* $20k invested x 60% = $12k = $ 32k paid back
$40k invested x 60% = $24k = $ 64k paid back
$90k invested x 60% = $54k = $144k paid back
90 days = 90%* $20k invested x 90% = $18k = $ 38k paid back
$40k invested x 90% = $36k = $ 76k paid back
$90k invested x 90% = $81k = $171k paid back
Why you should use us for First Position Gap Funding
– It is directed at those who cannot secure the funds they need through normal investor-
financing channels. Reasons may include: low FICO score; short amount of time involved; funded amount too small, etc.; lacks cash; title issues that need to be cleared up: lien, loan default, probate
– We make quick flips possible, for smaller deals, that were previously not doable
– Cash-strapped investors who want to list/sell a property, but need to do spend money (they don’t
have) on remedial items such as: code violations, cosmetic fix up, judgments, etc.
– Funding normally occurs in (6-8 working) days, not weeks (for qualified deals)
– We do not require an appraisal, credit check or income verification
– Use our funds to get past temporary cash flow hurdles
– Pay overdue: taxes, liens, HOA fees
– Use our funds for building permits, closing costs, materials
– Pay off a small note so property can be sold or refinanced
– Don’t tie up your personal capital, use ours
– Allows investors to leverage themselves into more deals