What are the benefits of using a "Private Investor"?

One of the main benefits is the speed in which we can close a transaction.  If you have a great buy, you don't want to spend a month or more trying to get traditional bank financing.  We close all funding in 7 to 10 business days.  Also, banks and mortgage lenders may not make loans on distressed properties due to restrictive regulations and other factors.  In cases where they do make loans the loan may not include money for repair cost, and is likely to be a percentage of the purchase price leaving the investor short of necessary funds. 

Do I get repair money with Ohio Rehab Loans?

Yes, we always include the repair costs.    

What is the typical deal ?

A typical deal would be a 12 month term of $40,000 to $140,000 for a single family investment property in Ohio; however we do not have any maximum or minimum amount and will go out as far as 24 months. 

Are you willing to finance deals for a borrower/investor who does not have the cash reserve/credit score to obtain rehab financing or someone who is looking to share the risk?

We now offer a profit sharing program to provide funding opportunities for investors under these circumstances.

Is there a prepayment penalty? 

No, there is never a prepayment penalty.  We encourage early payment.

What are your insurance requirements?

We require a prepaid insurance policy.  We will normally include the premium in the funding amount and pay the insurance Agent directly. The policy should cover "vacant property in need of repair" vs. a standard Landlord Policy which assumes the property is rented.

Do you just fund in Ohio?

Yes.  We fund in greater Columbus Ohio, Cincinnati and some Dayton suburban areas.

What is your policy on investors who live outside Ohio?

If the investor lives outside Ohio we require a co-signer who resides in the Ohio city where the property is located.  An exception could be made for a greater Columbus are property (where we are located).

How fast can I receive property improvement draws?

We can usually fund your draw request within two days.

How many draws do I get?

What is the interest rate?

The interest rate is going to vary depending on your credit, the property condition, location, and the difficulty of the project. We offer competitive rates.  

What Loan to Value ratio do you use?

We will fund up to 70% of the After Repair Value of the Property for most single family houses. For properties outside our normal investment areas or unusual circumstances the loan to value may be less.

Do you make commercial loans?

The majority of the funding is on single family residential rehab projects.  However, we do consider commercial projects on a case by case basis in the greater Columbus area.

Do you loan on rural properties?

Generally not but would consider projects within 50 miles of Columbus, Ohio. 

Do you offer permanent financing?  

No, but we can help you secure permanent financing on your investment properties because we have long standing relationships with lenders.

How long does it take to get approved?

Usually a day or two following the receipt of a Completed Application and Application Fee.

How long does it take to fund a loan?

We can fund within 10 business days since we lend our own money and do our own property valuations and underwriting.  In some instances we can accommodate a faster close.

If I am buying the home in a business name, do I have to personally sign the note? 

Yes. We require a personal guarantee on our transactions. 

Will my spouse and business partners have to sign? 

Yes, all partners including spouses will have to sign the financing documents depending on how title is taken for the property. 

How is the funding secured for an investment property purchase?

A) If your strategy is to sell the property once it is improved, then in most instances we take title at the time of purchase and do an interest only land contract back to you. When the property sells we deed the property to your Buyer in exchange for a payoff of the land contract.  You remain in charge of rehabbing and marketing the property at all times.

B) If your strategy is rent and refinance the property and hold longer term, then in most cases we take title to the property at the time of purchase and do a interest only land contract back to you. When the property is refinanced, we deed the property to you and release the land contract.  You remain in charge of rehabbing and marketing the property at all times.

How many projects can I have with your company at one time?

Many customers have 2 deals or more at a time.  Exactly how many will depend on your cash reserves, financial ability and a proven track record.

How much will my payments be?

The payments will be lower because they are interest only payments.  To figure your monthly payment, simply multiply the interest rate by the loan amount and divide that number by 12.

Do I need a survey?

We will waive the survey for a survey waiver fee, if there appears to be no encroachments.  Also, we would accept any survey performed in the last six months. 

Do I inspect the property?

Yes, we inspect the property before closing, and reserve the right to inspect before each draw.    

Do I need an appraisal?

No. We do our own property valuation estimates. However, any past appraisals, comparable sales and pictures you provide will help speed up the closing and assist in arriving at an accurate property valuation. 

How long is your normal rehab loan?

Our normal rehab loan is 12 to 18 months.

Can the loan be extended? 

Yes, we offer 2 three month extensions for a fee.   

How do I get started?