Properties For Sale

 
FAQ
  1. What is a "Hard Money Loan"?

  2. What does 100% financing vs. Loan up to 65% LTV mean?

  3. What determines if my property will be approved by Rehabbers Capital as a 65% type loan?

  4. Please describe my purchase process

  5. Where do you lend?

  6. Why should an investor use a Hard Money Lender (HML) rather than banks and mortgage companies?

  7. What do I need to do to get started? Will you provide a pre-approval letter

  8. I am unable to find email correspondence from you. Where could have happened to it?

  9. What are your terms, fees, and interest rates?

  10. Why do you limit your ARV to $75,000?

  11. Can I make payments to Rehabbers Capital online?

  12. Can I have more than one loan at a time?

  13. Can I start work prior to purchasing my property?

  14. If I am buying the home in a business name, do I have to personally guarantee the note?

  15. Can I live in the house during the course of the loan?

  16. Will Rehabbers Capital lend on a mobile or modular home?

  17. Do you finance raw land?

  18. Do you finance in rural areas?

  19. Can I roll the closing costs into my loan?

  20. Do you loan on New Construction?

  21. I am about to purchase a property which, I think, has permits from the City.  What should I do?

  22. Do you also loan on acquisitions of income-producing properties or only on rehabs?

  23. How are property taxes handled?

  24. Do you finance properties that are involved in assignments or flips?

  25. Do you have a minimum credit score?

  26. Do you require a survey?

  27. What kind of insurance should I get?

  28. Sellers Disclosure Notice: Should I receive/give one

  29. Why can’t I use my own appraisal or appraiser?

  30. How can you claim to be Texas Most Experienced Asset Based Hard Money Lender?

  31. What about other types of improved property?

  32. My goal is to make as much money as I possibly can. As a Real Estate investor, should I have other goals also?

  33. When you perform an inspection, whom is the inspection for?

  34. Why should I use Funding Partners as my rehab lender?

  35. Do you have helpful suggestions on dealing with contractors and sub-contractors?


We are direct residential lenders servicing private residential investors in Texas. We specialize in short term real estate secured loans often referred to as bridge or gap type financing, or hard money loans. We provide these loans for primarily residential investors, in all price ranges.

What is a "Hard Money Loan"?
The term "Hard Money Loan", as it is referred to in the real estate or lending world, is a type of non-bankable loan. Usually this means a loan where the lender can approve the loan request based upon the value of the assets and the equity in the assets, side stepping much of the usual time consuming documentation and verification that a lender might require to lend the same amount of money under "Soft" terms.

Hard money loans are those loans usually funded at a higher cost to the borrower either because they are non- bankable by a traditional lender, and/or the borrower is in a hurry and can't afford to wait for weeks or months for a traditional lender.

A hard money loan is based upon the value of the real assets or collateral anchoring the loan without significant regard to:

the borrower the borrower's credit
the borrower's income the borrower's tax return
the borrower's employment the borrower's assets

 

A hard money lender may over look many items that are critical to a traditional lender and soft money loan. These overlooked details may include:

Foreclosures & Bankruptcies No credit record or citizenships
Judgments Unreported income
Credit dings, dents & damage Unknown sources of down payment

We realize that every deal has a unique set of circumstances: we understand this, and offer to deal with each borrower on a one-to-one basis.


 

What does "100% financing"  versus "Loans up to 65% LTV" mean?

Let's use an example.  Say you've found a property that will have a contract price of $60,000.  You have estimated a repair amount of $10,000, and an appraised value of $100,000.  You'll be into the property at $65,000, or 65% Loan to Value (this example excludes any closing costs).  (This also assumes we approve the property to be a 65% LTV type property; more on that later.)  Therefore, we would loan out $65,000, or 100% of your costs.  Now, let's say that it turns out that your repair estimate is $15,000.  This would put you in at 75% LTV.  At this point, we will require you to bring any amount over approved LTV, or 65% in this case.  Therefore, you would need to bring $10,000 to closing.  This is done so we can ensure that all needed repairs are done to the property.  As your draws are completed, we would be loaning your own money back to you at the end of the rehab.  Of course, you wouldn't be charged interest on your own money, meaning that you won't be charged interest on the $10,000.

 

What determines if my property will be approved by FPLP as a 65% type loan?

All definitions are subject to interpretation by the lender.

  • 65% The typical house we would lend 65% on is a home which is in relatively good condition, and in a good location.  Most homes in the area are sold retail as opposed to owner financing or leasing and are consistent in value.  The homes in the area are well maintained.

  • 60% This is the typical investment property located in neighborhoods which have a moderate amount of rental property or a-traditional type lending occurs.  This neighborhood has an inconsistent value.  The many homes in the area have differed maintenance.

  • 55%  or lower This is a low end investment property located in neighborhoods which have a high amount of rental property or a-traditional type lending occurs.  This neighborhood has is difficult to value.  Most homes in the area have substantial differed maintenance, and a higher degree of vacancies.

Please describe my purchase process

Rehabbers Capital is an asset based lender working exclusively with single family investment properties.  Most transactions which are entered into are risky due to the amount of repairs typically required to bring the property up to our required standards.  As such, we initially require that the property be placed in our name and once repairs have been completed and inspected, title can be transferred into our client’s name.  A typical FPLP transaction requires the client to assign their contract to FPLP, who will then close the property and simultaneously enter into a Contract for Deed with our client thus allowing the construction fees to be rolled into the transaction.

Where do you lend?

Rehabbers Capital only lends in the state of Texas. We are lending in these cities (and surrounding cities): Dallas/Ft. Worth, Houston, Austin, Waco/Temple/Killeen, Tyler. We are presently not lending in San Antonio.

 

Why should an investor use a Hard Money Lender (HML) rather than banks and mortgage companies?

  • HML's can close quicker than the others

  • A true HML isn't necessarily concerned with your credit.  Rehabbers Capital bases its loan on the After Repaired Value of the property.

  • A HML loan doesn't affect your credit score.  We only pull your credit once, not everytime you request a loan.

  • Rehabbers Capital does not require a down payment so you have more cash to do other deals

  • You can't get a loan anywhere else

  • The inspection is quicker


What do I need to do to get started?  Will you provide a pre-approval letter?

For both questions, please complete our application and fax it to the number provided. Please write your email address clearly.  You should receive an email within a day.

 

I am unable to find email correspondence from you. Where could have happened to it?

Some email filtering devices will see email that comes from a real estate company as spam. Before calling us to ask why we haven't emailed something that we said that we did, please look in your Bulk Mailbox, Junk Mailbox, or Spam Mailbox. If it's not there, then please feel free to call us.

 

What are your terms, fees, and interest rates?
Each Funding Partners loan plan has different terms and costs. For individual breakdowns, please refer to the “Terms & Lending Conditions” page of this website.

Why do you limit your ARV to $75,000?
We assume that a property that has an ARV of $75,000 will be in what we term a "65%" area.  At 65%, your loan with us would be $49,000. It is difficult to get a loan for under $50,000 if you want to refinance the property. And yes, we allow for exceptions. To go below $75,000, you must have a 650 credit score.

 

Can I make payments to FPLP online?
Yes.  FPLP accepts payments via PayPal
. Please note that there is a 3% "handling" fee that will be included with your payment.

 

Can I have more than one loan at a time?

FPLP does not have a specific number of loans that anyone can have at one time. The limit will be based on each borrower's ability to handle multiple properties as well as their financial ability to make the monthly payments.

 

Can I start work prior to purchasing my property?

Rehabbers Capital does not attempt to control what you do prior to closing. We strongly suggest you discuss this with your legal counsel.  However, if work has commenced on the property prior to closing, your title company as well as FPLP will require, at a minimum, the following:

  • Evidence that all work has been stopped

  • An itemization of work performed prior to closing and evidence that all bills have been paid

  • Lien Waivers for any party working at the property

  • All Bills Paid Affidavit executed by the buyer and or seller as necessary

This is to ensure that constitutional mechanic liens will not arise and take priority over the purchase money mortgage and to ensure the title company will issue a title policy on the property.

 

If I am buying the home in a business name, do I have to personally guarantee the note?

Yes, although we offer the flexibility of titling the property as a Trust or business entity, we require a personal guarantee on most of our transactions.

 

Can I live in the house during the course of the loan?
No. FPLP only lends on properties that are non-owner occupied.

 

Will FPLP lend on a mobile or modular home?
No.

 

Do you finance raw land?

No. We will loan on subdivided, improved lots and land; we DO NOT loan on raw, undeveloped land.

Do you finance in rural areas?

No.  If your property is on an unpaved road, it's rural.

Can I roll the closing costs into my loan?

Rehabbers Capital will loan up to 65% of the After Repaired Value of the property.  As long as the loan does not exceed this, you may receive 100% of the sale price, 100% of your repair costs, and even have some or all of your closing costs rolled into the loan. The bottom line is that if your loan to value is sufficiently strong, you can get into a property with little or no money down. However, we typically do not allow cash to be pulled out of a loan.

Do you loan on New Construction?

Currently, we have suspended loaning on new construction projects. When the mortgage crisis has cleared and the credit crisis has eased, we may resume lending on new construction projects.

I am about to purchase a property which, I think, has permits from the City.  What should I do?

Prior to purchase of the property, you should ask the city if there are any outstanding permits that haven't been closed.

Do you also loan on acquisitions of income-producing properties or only on rehabs?

 

 

As long as its 1) residential, 2) non-homestead, 3) fits our lending criteria, & 4) our exposure is 65% LTV or less, we will consider it.

FPLP has made a change in the way that it handles property tax escrow.  We will escrow any property taxes that were received from the seller at the time of purchase. We will also charge a monthly escrow of all estimated property taxes, using the most current assessed value. The escrow will use a flat tax rate of .03/$100,000 of assessed value, regardless of the actual tax rate. Any difference between taxes escrowed and actual taxes due will be reconciled at closing.

 

Do you finance properties that are involved in assignments or flips?
Our loans allow for these transactions, but we have reasonable limitations on the number of assignments or flips per transaction and limits on the dollar amount allowed.  Please contact our office for additional details.

 

Do you have a minimum credit score?

No.  As hard money lenders, our primary criteria is the property being secured with the loan.  Upon submission of your application, your credit  will be examined.  This helps us determine your exit strategies .

 

Do you require a survey?
Not generally. However, should our appraisers or account representatives suggest one, or if the title company will not insure the loan without one, it will be required.

 

What kind of insurance should I get?
You should get a Builders Risk policy or Vacant Dwelling policy.  Make sure the insurance company knows that there is construction that is occurring on the property.

 

Seller's Disclosure Notice:  Should I receive/give one?
Whenever possible, it is recommended that you insist on receiving a seller's disclosure notice from a seller. Likewise, it is recommended that you give a seller's disclosure notice. It can be as simple as marking up the notice with a statement that you have no knowledge. But we would recommend attaching a list of repairs that you made to the house.  By listing what you know, it may save you trouble in the future, if there are ever any questions. Please see the attached article from the Texas Association of Realtors.

Why can’t I use my own appraisal or appraiser?

We use our appraisers for same reason a bank uses their own approved list of appraisers.  The appraisers on our approved list are familiar with investment properties, and perhaps have been investors themselves.  We ask them to look for items such as what the neighborhood is like, boarded up houses in the area if any, what type of major repairs need to be done to the property to bring it up to marketability, if the area has mostly retail or seller financed sales, and what an actual sales price and time frame would be.

Although most real estate agents and investors tend to look at the “per square foot” price of a property when trying to assess the value of a property, that is generally not the way that an appraiser appraises a property.  They also don’t use the appraisal district’s assessed value.  They look for items, such as what the neighborhood sales are, the specific differences between those sales and the subject property, location of the subject property to positive or negative influences, how long ago the sales were, and the type of financing the other property sales reported as having.  Generally, an appraiser will not use a listing as a comparable property if enough actual sales comps are usable.

We keep track of the price that a property sells for when an investor sells the property on a retail sale, versus the appraisal value.  Even given market timing fluctuations between the sale date and the appraisal date, the appraisal is oftentimes within 5% of the sales price.   There are, of course, exceptions, especially when there have been few sales in an area.

What Rehabbers Capital is mainly concerned with is, if Rehabbers Capital has to take control of the property, what’s the likelihood of a quick sale and what the price would be for that sale.

If you want to send an appraisal to us that has previously been prepared for your property  and is substantially different from ours, you are more than welcome to do that.  We will take a look at both appraisals, and determine where the differences lie.  You may also send in actual comps that you know of and that the appraiser may not know of.  Please do not send in comps or listing from the MLS, because we, as a licensed Real Estate Broker have access to the MLS.

Remember, we don’t make a dime if we don’t close a property for our clients simply due to a “low” appraisal.  However, while you don’t like losing money, neither do we.  We have been real estate investors for almost 15 years, and sometimes we use our “experience factor” in determining the validity of investing in a property.  That is some of the value you receive when you use Funding Partners, LP as your lender of choice.  It is our policy to not lend on a property that we, ourselves as investors, wouldn’t purchase for our portfolio.  We will not lend on a property that, in our minds, is not a good investment.  And, we would encourage you not to invest in that property also.

 


 

How can you claim to be Texas' Most Experienced Asset Based Hard Money Lender?

We have been residential investors for over 15 years.  The principals and employees of FPLP have over 50 years of real estate experience.  As investors, we have bought, rehabbed and sold or rented over 2,000 homes.  There probably isn't any situation in single family investing that we haven't encountered.  With the combination of investing and lending, we don't think that there is another company in Texas as large as we are who live up to that claim.

 

What about other types of improved property?

Give us a call.  You never know until you ask.

 

My goal is to make as much money as I possibly can.  As a Real Estate investor, should I have other goals also ?

Yes.  Do you want to work your entire life?  NO!  What you want to do is to accumulate and build real wealth, as a Real Estate investor.  One of the ways to accumulate and build wealth is to own properties, free and clear of any debt.  Want to know how to do that?  Email us at info@fundingpartners.com .

 

When you perform an inspection, who is the inspection for?

Inspections performed by Rehabbers Capital or their representatives are solely for the benefit of the lender for the purpose of issuing a draw. Rehabbers Capital, is not inspecting the property for any particular workmanship, or quality and and borrower should not rely upon the inspection as such and should do their own due diligence.

 

Why should I use Funding Partners as my rehab lender?

Here are just a few:

  1. The ability to provide funds rapidly, in order to secure the purchase of the property before other investors get there!

  2. Streamlined closing procedures

  3. Review and assistance with repairs

  4. 24 hour inspection and draw process

  5. Legal and title expertise

  6. Real Estate Brokerage expertise

  7. Mortgage Brokerage expertise

  8. New Home Building expertise

  9. Creative property exit strategy expertise

Do you have helpful suggestions on dealing with contractors and sub-contractors?

Yes, please click here.