What We Do
We work mainly with wholesale contract flippers and some rehabbers, i.e. those real estate investors who go after troubled properties with
a. Clouded titles
c. Overdue loans
g. Double closing issues, i.e. same day back to back escrow is not doable for some reason
Our two biggest sources of deals are hard money lenders and commercial loan brokers. They send us the deals that they can’t place elsewhere. We are private investors; we do our own underwriting; we provide capital for use with non-owner-occupied, investor-owned properties only.
Assuming the deal is right (i.e. meets our criteria), we are prepared to provide the following:
- 100% funding with no out of pocket money required by the flipper or rehabber
- No: credit check, monthly payments or appraisals.
3 Amounts as low as $20,000 Maximum $95K for 1-3 months ( Higher Amounts and Longer Term will be considered on a case by case basis.
- Will wire funds in 8 working days or less
It seems there is ALWAYS a steady supply of those type of “troubled” properties since they are driven by mistakes/misfortunes that befall people first, and subsequently impact their property. The property (or the real estate market in which that particular property resides) is then often NOT the issue, but instead those who own the property and the problems they are experiencing are usually the problem.
The flipper cannot buy the property, in order to flip it, because the clouded title prevents him from obtaining a fee simple, grant deed. Unless and until he can clear up the clouded title, he cannot enjoy a payday. And the seller can’t sell for the same clouded-title reasons.
This is a bigger problem than many professionals in this industry realize. It is in some ways an unexploited market since, the vast majority of funders are not eager to provide capital to for “troubled” properties. They see the risk as too great. Also, they don’t really want to fool around with the smaller funding amounts and short time frames that we specialize in (under $100,000, for as few as 30 days). What WE do is provide the funds to solve the property-related problems so that the flipper CAN get a grant deed in his hands.
Caveat: EMD Funding must be in First Position on the deed and note that gets created. Once we have provided the capital, the investor has several choices:
- He can flip the property to a cash buyer, and earn a profit.
- Fix then flip the property using say hard money to take EMD Funding out of the deal
- Buy and hold the property, with the clear title that we help facilitate, and using private capital or conventional financing to pay off the previous first note/deed
Consider this: An investor who owns their property free and clear, but has bad credit. They may need funds to clear up title or make upgrades to the property (to garner higher rental income) or prepare the place for sale via cosmetic enhancements. They cannot get the needed funds from conventional lenders because of their low FICO score, and hard money/private funders are not usually interested in say $45,000 for only 30-90 days. For us, THAT is our bread and butter.
Also, we offer what we refer to as Slow Motion Transactional Funding (SMTF). Traditional TFs are proving to be more and more problematic in more in different parts of the country. So, in order to assist in that regard, we offer SMTF; this allows the flipper up to 30 days to complete the double escrow needed to pull off a TF vs. same day back to back closing, which are often not available as much as they used to be.
In summary, if you wish to carve out a new, exploitable niche to an under-served market, we submit that the above areas are some relatively clear paths to get you there, using our funds to make the deals happen.
Contact us and we will send you complete details and Application form to start up approval process.Email: email@example.com 916-520-4233