All Forum Posts by: George Despotopoulos

Hello,

MoFin Lending is a tech-enabled direct lender. We offer both short and long term products for fix and flips, rehab projects, and rentals. 

Bridge Loans:

• Up to 90% of acquisition, 100% of rehab, capped at 70% of ARV
• Interest only monthly payments, with no pre-payment penalty
• Qualify, and receive terms, based on experience
• Rates range from 8.50% - 12.5% (depends on experience and LTC/LTV requested)
• Minimum loan amount is $75,000 ($50,000 on initial funding and $25,000 in rehab)
• 12 month loan terms 
• 600 minimum FICO score (scores between 525 - 599 will be considered on a case by case basis)
• Fully transparent; our process, requirements, and costs are provided to you in writing before you decide to move forward with us! 
• Close in 1-3 weeks

Rental Loans:

• 75% LTV on cash-out refinances, rate/term refinances, and purchase money loans
• 30 year term options: 7/1 ARM, 30 year term/amortization or 30 year fixed
• Rates range from 6.5% - 9.0% (depends on loan product requested, LTV, and FICO score)
• 660 minimum FICO score (scores between 600-649 will be considered on case by case basis)
• $75,000 minimum loan amount
• No proof of personal income required. We underwrite to the property's income
• Fully transparent; our process, requirements, and costs are provided to you in writing before you decide to move forward with us! 
• Close in 2-3 weeks
• Low closing costs/fees

You can pre-qualify on our website: MoFin, by giving us a call at (866) 900-6634, or through e-mailing us at info@mofinloans or [email protected]. Pre-qualifying does not require any sensitive information and it does not affect your credit! 

Feel free to reach out if you have any questions. 

Thank you

 These are some great suggestions (including the one below). There are also a TON of free resources. Do some googling for PDFs, Blogs, Articles, etc.. 

But I know you're looking for books, so another one I like is Building Wealth One House at a Time by John Schaub. 

Matthew, can potentially offer $56K on acquisition and $50K in rehab (total loan amount of $106K). Feel free to message me. 

@Tim Ivory - 

You have a property you want to purchase. The purchase price is $150,000, you think it needs $40,000 in rehab, and you'll be able to flip it for $220,000. 

You go to a lender that has the following loan parameters for fix & flips: 90%LTC (90% of purchase, 100% of rehab costs), capped at 70% ARV.

You submit your numbers to this lender. Assuming the property and the numbers are deemed acceptable, the lender here would do $135,000 on $150,000 (90% LTC) and then the $40,000 for the rehab. Total loan amount in this scenario is $190,000. The ARV you provided is $220,000 and 70% of that is $154,000. So this wouldn't work. The lender would have to reduce the amount they fund on acquisition by $36,000. You would only qualify for $114,000 on $150,000, which is 76% LTC.

In the above, if your projected ARV was $280,000 (70% of ARV = $196,000) and the total loan amount of $190,000 would work.

I hope that clarified things. If not, I'm happy to get on a call to explain/answer any questions. I saw you pm'ed me, we can set up a time to speak that works on your end.  

@Tim Ivory

When obtaining a loan both on acquisition and rehab, it's one loan amount. The initial funding is on the purchase price (80%-90% of purchase) and then your 100% of rehab costs is held in escrow. It's released to you in draws. You do the work, submit a draw request, lender sends out an inspector to verify the work has been completed, and they release that portion of the funds from escrow into your account. 

@Tim Ivory 

Some HML do pull your credit at the outset. Others wait until you're pre-qualified and they're pretty sure that they can close your loan (barring any significant unforeseen circumstances that pop up during underwriting). The inquiries will show on your report.

Hey Jeremy (great name reminds me of Vince Vaughn's character in Wedding Crashers)! I'll answer some of your above questions. 

Difference between hard money lenders and traditional local bank? Hard money lender will fund up to 90% of acquisition and 100% of rehab costs, they'll lend to LLCs, they won't really care much about your credit score, and they'll fund within 5 business days. I've heard of local banks funding the same but it's pretty rare and hard to find. 

No need to sell your soul. Hard money likes to see a track record. This doesn't only mean before and after photo. Organization goes a very long way. Do you have receipts, bills, invoices? Did you track your expenses in a spreadsheet? All very helpful. 

Most hard money lenders won't care about your personal DTI. They will want to see that you have decent credit.

There are private lenders everywhere! There are 'private lending companies' that lend nationwide too.

@Jon E. Like Brian mentioned, a HELOC or Cash-out refi. Where to go for that depends on your creditworthiness and other factors (personal income/DTI), how you own the property (is it in your personal name or an LLC), when did you purchase it--less than 6 months ago? more? etc..

You can try to go conventional, to a community bank/portfolio lender, or to a non-bank lender for the above. 

@Noah Pruett most go to local real estate investing meet-ups or conferences. Also, BiggerPockets is a great resource to find like-minded individuals and private lenders! 

100% financing is tough...even for private lenders, unless there are compensating factors (great track record, proven successes, strong reserves, great credit score...maybe even good job/w2 income (usually not a factor for non-bank investment property lenders, but may be for a private individual)). 

Most lenders will require you to use your own funds for the downpayment. Also, most lenders will have a reserves requirement of 3-6 months. This means, independent of having the funds for the downpayment, you will need 3-6 months of loan payments (PITIA) in reserves.