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Putting together Rehab Investor Loan Program

By Brenden Rendo

Mortgage and Lending with Home 1st Lending/AC Mortgage Closing

December 11, 2007 08:48 AM

I am working with an investment group and putting together a loan program the we will target to investor to complete rehab properties. Please let me know what you think of the program.

REHAB INVESTOR PROGRAM

Maximum 60% After Repair Value

Interest Rate 14%

Upfront Points 3%

Pre-payment penalty 2% within the first 12 months

We will need an estimate of the repairs and appraisal based with after repaired value

We will charge an inspection fee for the repairs to release the draws

Charge $500 to $750 to pay the building inspector or General Contractor that we hire

We should have an appraisal review fee and an appraiser to review all appraisals

The investor should have a minimum of a 660 credit score and have completed 2 jobs

We should limit the number of loans to 2 outstanding loans to any single investor at one time

Thanks for your feed back

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Brian Schulman

Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA

Lancaster County PA RealEstate Expert 717-951-5552

Brendan, it sounds very conservative. I wonder how many rehab investors would actually qualify for it?

Dec 11, 2007 08:56 AM

y y

/LSONHC';/.c - Denver, CO

Beyond conservative; sounds like hard money. We're doing Investor rehabs to 90% purchase, 85% cash out on ARV. We'll even go to 95% purchase if it's going to be owner occupied.

Conforming Interest rates and no prepay.

Sorry Brendan, but I think you're pricing yourself out of the market unless you can create some niche other can't fill.

Dec 11, 2007 09:18 AM

Brenden Rendo

Home 1st Lending/AC Mortgage Closing - Longwood, FL

Mark,

It is hard money. Considering that it is NoDoc, most of my investor's feel it is pretty good.

Dec 11, 2007 09:32 AM

Didn't see it was No Doc, Brednan. There's your niche.

good luck

Dec 11, 2007 09:40 AM

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Brenden Rendo

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