1. Processing of the loan will begin once processor has received all of the following: Contract, Title Commitment, Appraisal, and Draw Schedule (if applicable) on the subject property. These documents MUST BE received by the loan processor 3 complete business days PRIOR to scheduled closing. Fax Documents to Eileen at 210.599.0319 or send via email to Raymond@Homes2Go.NET.
2. Contracts must be written so that all parties are aware that buyer will be receiving financing, and the special provisions paragraph should include the following “Transaction will fund within 24 hours after all documents have been executed”.
3. Maximum loan amount not to exceed 65% of the After Repaired Value (ARV) minus the cost of repairs. ARV to be supported by Certified Independent Appraisal by Bruce Hollister 210.724.7660.
4. Borrower must supply Lender with a draw schedule/ plan of renovation (provided by lender), if applicable prior to closing. Underlying real estate collateral will be reviewed and inspected by Mitch Stephen and/or Raymond Braun. Funds for renovations will not be released at closing. Borrower will pay for repairs up front and be reimbursed once completed repairs have been verified and approved by Lender. The final draw will be paid upon completion of all renovations and when the property is in its “ready to sell” condition. Draws will total the amount of funds retained on the settlement statement minus the inspection fee of $100.00 per draw. Funds to be given in two draws with the first being at ½ completion and the final at full completion. Possible additional draws on large rehabs with prior consent from R.E. Capital, LLC
The inspection fee of $100.00 will be taken out of each draw check. NO EXCEPTIONS
5. All closings must be done through an attorney or Title Company.
6. Underlying property to include Mortgagee Title Insurance and Hazard Insurance with a vacancy clause or builders risk naming R.E. Capital, L.L.C. as Mortgagee and Additionally Insured. Insurance information will be provided to Borrower prior to closing; However, borrower may use any insurance company that meets the aforementioned Mortgagee requirements.
7. Lender must be in First Lien position on subject property
8. No Minimum Loan amount
9. Origination Fee is 3% or $1,250.00 whichever is greater. Additional fees include a document preparation fee of $300.00 and a processing fee of $250.00.
10. Loan Term is six (6) months with monthly interest only payments. Lender has the option of extending the note for an additional six (6) months providing all payments have been received in a timely manner. An additional fee of 2% or $1,250.00 (whichever is greater) will be paid by borrower at the time of renewal.
11. Interest Rate is currently set:
A. 13.9% with credit score 700 or higher and $20,000 cash or cash equivalents
B. 14.9% with credit score 650+ and $10,000 cash or cash equivalents
C. 15.9% for all others
Interest rates periodically fluctuate based on the Prime Lending Rate. Accordingly, all renewals are based on the lending rate at the time of such renewal.
12. Payments will be prorated to the 1st of the month following closing unless otherwise requested by the Borrower and at the discretion of R.E. Capital, L.L.C; However, all renewals and loan terminations are six months from the loan date.
13. Borrower is required to sign a Personal Guarantee Agreement. If Borrower is purchasing in a Land Trust, then the Beneficiary of the Land Trust will sign personally, or if Beneficiary is a Corp., LLC, Ltd., ect. an officer of the Company must sign the Guarantee, and provide proof that the signor is authorized to sign on behalf of the Company.
14. After all documents have been signed and reviewed by processor funds will be wired to the attorney or the title company. Lender may require up to 24 hours after signing to fund in order to review documents. The following documents will be provided by Lender and signed by borrower at closing.
1. Warranty Deed with Vendor’s Lien
2. Deed of Trust
3. Real Estate Lien Note
4. HUD Settlement Statement (Need Prelim. prior to closing for approval)
5. Copy of the Insurance Binder showing vacancy clause and R.E. Capital, L.L.C. listed as the mortgagee.
6. Notice of No Oral Agreements
7. Guarantee Agreement (See # 16)
8. Mortgagee Title and Hazard Insurance
9. One copy of Land Trust (if applicable)
10. Truth in Lending Disclosure
11. Good Faith Estimate
12. Hold Harmless Agreement
13. Non-Military and Non-Homestead affidavits
I/We, the borrower(s) do hereby attest that we have read the above guidelines and do hereby understand the procedures necessary to fund when borrowing from R.E. Capital.
R.E. Capital, LLC reserves the right to deny any loan for any reason up until the time of closing.