High Leverage Loan Program

Our High Leverage Loan Explained In Detail

First things first. Forget everything you know about hard money. This is our own proprietary custom loan product and is not like any other program out there. We were flippers ourselves so we set out to build our dream loan. TADA!!! The 80% ARV loan was born.

The most important thing you need to know is our loan will cover your entire purchase, escrow cost, and rehab. That’s right, all of it. It is only limited to 80% of the After Repaired Value (the price you’re going to sell the property for).

Next is the cost. There are no points, junk fees, etc. The loan will cost you 8% of the loan amount for a term of 105 days. The 8% is paid up front at the close of escrow when you purchase the property. In other words, your only out of pocket expense in every transaction is 8% of the loan amount.

So what happens after 105 days? As long as your rehab is complete we add an extension to your loan. The extension rate is .089% per day. That interest is added to the loan balance on a daily basis. We will collect that interest when we receive your loan payoff from escrow whether you sell the property or refinance. You do not make any monthly payments.

Construction funds are released during the rehab when milestones are reached. These milestones are set by you and approved by us before you purchase the property. Lets say your first agreed upon milestone was for $5,000 and it required you to complete demo, rough plumbing, rough electrical, and A/C repair. Lets also assume you completed these items in a week. We would come out to the property to do an inspection and verify the work was done. Upon a successful inspection we would cut a check or wire you $5,000 to pay your contractor(s).

What’s the catch? No catch but we do require that you move quickly. This is not a loan for the casual investor. We lend money to flippers who move quickly and are looking to maximize their cash on cash returns. Our borrowers typical make a three to four time higher cash on cash returns than with any other lender.

But….there are a few requirements you need to know about.

Our maximum loan term is 180 days and we do not give extensions. We start foreclosure on day 181 and begin charging our penalty interest rate of .1% per day.

We require you to carry proper insurance coverage through out the entire life of the loan.

We will foreclose if you do not start construction within 14 days after the purchase escrow closes.

We will foreclose if you stop construction for more than 14 day before completion without our approval.

We will reach out to you every two weeks during the selling phase of the property and will foreclose if communication stops at any time.

We do not want to own your flip. We are not a loan to own company. We put these guidelines in place to ensure our investors money is safe. Because of these guidelines we are able to offer the hard money loan that every investor dreams of. The faster you sell, the more money you make. We love seeing our clients make huge returns because they can execute deals quickly. Now go out and find a deal.

In Bullet Point Form

  • Maximum loan amount is 80% ARV (After Rehab Value)
  • 105 day initial term
  • Optional 75 day extension
  • NO APR
  • Loan fee is 8% of total loan amount due at close of escrow
  • No other money out of pocket for the investor required
  • Loan can cover purchase price, closing costs and rehab
  • 75 day extension adds charges to the loan payoff at a
    rate of 0.089% per day
  • Non owner occupied
  • No prepayment penalty
  • Bankruptcies OK
  • Foreclosures OK*
  • Repossessions OK
  • Bad Credit OK
  • No Credit Check

As A Sample Deal

$210,000 As-Is Value
$239,789 Amount needed to do deal
$240,000 80% ARV Loan
$19,200 Cash out of pocket from borrower

$300,000 Resale
$19,294 Cost to sell (Agent + Escrow)
$2,789 Purchase escrow
$19,200 8% loan cost for first 105 days
$30,000 Rehab
$207,000 Purchase price
$21,717 Net profit to borrower

Documentation Needed

  • Articles of organization/incorporation
  • Corporate statement of information
  • Bylaws/operating agreement
  • Fully executed purchase agreement (Must be signed by both buyer and seller)
  • A Line item budget of the rehab project or contractor bid
  • Schedule of rehab milestones (The line item budget broken into phases/milestones)
  • Escrow instructions
  • Estimated closing statement (from Escrow)
  • Preliminary title report


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