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Preview Loan Application
Page 1
Information about you, the subject property address, basic rehab cost information including when you want to close on the loan, the status of the property, whether it is under contract, not under contract or a refinance, and how you heard about us.
Page 2
Questions on the property, loan terms that you are requesting from 1 month to 6 months, then payment for the evaluations to be performed and confirmation of the billing information for the evaluations. Finally the approval of the return and refund policy. The application is now complete.
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Steps to Become a Real Estate Investor
1. Find a Property
- States We Serve Page
We recommend in determining the State and Counties, here are the States and Counties we lend in these because we think these are the best areas to do an investment. - Find A Property
Ways to find a property is to get a list service that knows about REOs, foreclosures and everything that is happening. We have a list service you can join. - Estimate Value
Once you have a way of finding a property and you start making offers on properties, then you want to establish what the value of that property is, we have product that can offer that for you. - Proof of Funds / Make an Offer
Prior to making an offer on a property you are going to want to download a Proof of Funds that says you are qualified to get the financing.
2. Evaluate Property
- Value
Do additional due diligence on what the value of the property. This would include working with agents, appraisers, if you haven’t done so all ready getting an Estimated Value Report - How Much Financing
- Look at the Loan Calculator.
- Determine if this is a Standard Property or a Unique Property as the LTV will change based of this.
- Work Needed
You need to estimate how much work will be needed. If you are planning on doing the work yourself keep in mind that we have to use the costs as if a contractor or handyman were doing the work. - Market Conditions
It is important to know if the market is in an appreciating or depreciating market. It is also important to know what is happening in the general area. We recommend you try the Property Approval + Report. - Property Approval +
Get the property approved. You can buy this product that will approve the property. It tells you that we will definitely lend on this property.
3. Make Application
- Gather Details on Home
You will want to know the address, county, zip code and details about the property - Estimated Repairs
Have an idea about what the repairs will cost, even if it is just an estimate. - Calculate Profit Potential
- Calculate all costs to make sure it is profitable venture.
- What are your costs?
- Purchase price
- Title fees to buy and resell property
- Agent fees to resell the property
- Rehab costs
- Hard Money Costs
- Incidentals / Emergency Funds
- What are your costs?
- Calculate all costs to make sure it is profitable venture.
- Preview Application
Preview the loan application so you will know what you will need prior to starting the loan application. - Complete Application
Complete the entire application. Most people forget to pay the evaluation fee and approve the echo sign. Echo Sign will be sent to you once you have completed the application in email and will need to be approved and you will need to pay the evaluation fee before we can continue. - Understanding Timeframes
Knowing how the process works from beginning to end. How much time is going to take so you have reasonable expectations through the process.
4. Close Loan
- Application Received
You will receive a thank you message that says your application is complete. If you have not received this have completing a full application please follow up with us. - Gather Closing Checklist
To facilitate a fast closing, please gather the following information as fast as possible and email it to us so we can close as fast as possible. - Arrange for Repair Money / Extra Money
Be proactive, while we are looking, we might be able to get you 100% financing; you are still going to have to come up with the repair costs. Just in case you may have to come up with some money or for the repair costs, while we are closing the loan, look for the avenues for the repair costs / extra money to be able to complete the deal and finish the repairs on the property. - Show up to Closing
Arrange with Title company at closing time, working with in conjunction with portfolio manager, execute on all closing documents – now you own the property.
5. Getting Repairs Done
- Have Agreements in Place
Prior to closing you should have in writing contracts with anyone who is going to do anything on the property and have arrangements for when they will start and when they will be complete. Also they should have penalties if they don’t complete on time. - Start work on Day 1
As soon as recording happens the hammer should be slamming. The day you sign the paperwork and it records you should have a people there that day working and there should not be a dull day until the work is complete. - Meet Deadlines
You need to be visiting the property on a continual basis if you are not doing the work yourself and you need to be ensuring that everything is being done staying late or weekends whatever is required to make sure deadlines are met. At this point time is money. - Stay on Budget
Don’t fall in love with the property and overdo the property. You aren’t moving into the house for yourself and you don’t need to overdo. You need to make sure you stick with the original plan that you made. You cannot see the forest for the trees.
6. Sell the Property
- Put Sign Out Day 1
Put a sign out on day 1 with flyers that say pick your own paint, tile and carpet. - Stage the home
$2000 average price increase on selling the home when you stage your home. Also, the home typically stays on the market for an average of 33 days or less versus an un-staged home of 196 days. - List a property with an Agent as soon as work is complete
- Get an agent out there
- Put on the MLS
- Open houses are happening
- Put on the bus tour
- Regular price reductions
- Every 2-3 weeks if you haven’t had the same number of visitors as other homes in the area then make a 3-5% price reduction.
- Make sure you price the house right in the beginning
- Negotiate with offers
No matter how bad the offer is try to negotiate with them. Try to come to some type of terms that you would both be happy with.
7. Pay Day
- Show Up To Close
Be proactive about the closing, the dates, the times. Make sure the closing actually happens on time, on schedule working with the buyers, the agents, the lenders. - Cash your check
Payday, good job - Reinvest
Don’t go spend your money. Too many times we see investors take this wad of cash and go blow it because it is the most amount of money they have seen at one time. They think it will last forever, we can promise you it doesn’t. Save it, don’t change your standard of living, reinvest, and see Step 1.
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