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Investors: Explore Diverse Financing Opportunities, Tips & Resources
Although many of the programs in this guide still exist, as a result of COVID, most criteria & requirements have changed.
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
Dear Investor,
We’re back again with our latest financing guide for real estate investors.
There continues to be big changes in the investor financing industry - especially for fix and flippers. In some markets, 100% financing is starting to make a comeback.
Most investors have two primary investment strategies: fix & flip and buy & hold. Generally, the purchasing goals for fix & flip investors are single family residences (SFRs) and small multi-families (up to 4 units). For some of our experienced investors who purchase multi-families (5+ units) and other commercial property types, generally, their goal is to buy and hold for positive cash flow.
Whether you’re a buy to hold or fix/flip investor, it’s no secret, you’re probably going to eventually need private money for your financing needs. This is especially true when it comes to fix and flip deals. Why? Banks will rarely, loan on an “as is” property that needs rehabilitation. Private money does not always mean “hard money.” For example, there is a middle ground between hard money and conventional rates. This financing is typically for investors who require a financing product not offered by a bank. Or, either they don't fit the traditional bank model (income, credit, debt-to-income ratio and net worth standards) or don't want to pay hard money rates.
There are diverse financing products to fit the needs of many different types of investor borrowers. Explore loan options, tips and resources in this guide that can assist you in making the right financing decision for your investment projects.
Principal, M&L.com
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
Before you start exploring this guide, review the following tips and need to know information:
1. There are primarily two ways for investors to get access to private capital forinvestments secured by real estate. This money is offered by groups of individualswho pool their money together to fund loans, and, companies who manage theircapital and issue loans, similar to a bank.
2. We’re offering two fix and flip 100% financing products. One is for financing thepurchase and rehab costs of properties in Colorado, Connecticut, Delaware, Florida,Georgia, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts,Missouri, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania,Rhode Island, South Carolina, Tennessee, Virginia and West Virginia. And, the otherprogram allows for the purchase, rehab & closing costs and loan fees can be rolledinto the loan up to a maximum loan of 70% of ARV, for properties inColorado, Nebraska (Omaha & Suburbs), Missouri (Kansas City & Suburbs), andKansas.
3. Getting a line of credit can be the perfect financing solution for investors whoseprimary investing strategy is fix and flips done on a regular basis.
4. Our rental property lending partners do not require a debt-to-income ratio,however, most do require a debt service coverage ratio (DSCR). This ratio is used bylenders to determine the amount of cash flow available to meet monthly principal,interest, taxes, insurance and, HOA (PITIA) (if applicable) payments.
Many lenders want investors to have a minimum DSCR of 1%.
DSCR Residential Calculation Example: $100,000 loan ▪ 30 yearsAmortization ▪ Fixed P&I (at 7.25%) = $682.18 ▪ TIHOA = $100 PITIA = $782.18 ▪ Gross Rent = $1,100 ÷ PITIA of $782.18 = DSCR of 1.41
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
Tips and need to know information cont.:
5. We’re offering no points option for commercial financing (including multi-family5+units & mixed-use) up to 80% LTV. Rates are 7%-8%
6. Most lenders require investors to purchase property under a business entity.Only a few lenders will allow investors to purchase properties under anindividual’s name.
7. There are nuances associated with most private lending programs. This is whyproviding initial information about your project is so important. Our goal is toprovide you with the best financing program for your investing strategy.
8. Has the seller requested a “pre-approval” or “proof of funds” letter to confirmyou (the buyer) have the ability to honor the terms of the transaction? We canprovide a letter in most cases.
Complete Our Quick App For Refinancing: https://www.morlinoandlathea.com/refinanceinvestorproperty.html
Loan Scenario Link:
Complete our quick app for terms
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
Explore Some of Our Popular Financing Programs – Let’s Start with Fix/Flip
Fixing and flipping homes is an excellent way to build your real estate portfolio and wealth. For both new and seasoned real estate investors, there are basic principles that will help you make the process a success. The key is to buy the right property, choose the right contractor that will help keep your rehab budget under control, and ultimately sell it for a profit.
Fix/Flip Financing – Any Experience: Do you fix/flip in AZ, CT, DE, FL, GA, ILL, MD, MA, NC, NJ, NY or PA, TX and VA? Property type options include 1-6 Units & Mixed-Use (Based on location). More details:
Minimum Loan Amount: $75K - $100K ▪ Rate: 9% - 12% ▪ Term: 12 Months ▪ Purchase: Up to 90% LTV & 100% of Rehab Costs ▪ ARV: 60% - 75% ▪ Points: 1-3 ▪ Score: 600+ ▪ Business Entity Only Complete our fix/flip scenario Or, Request a Quote
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
Complete our fix/flip scenario
Here are 3 fix/flip financing products for investors with no experience.
Inquire about our other fix/flip programs for experienced investors.
Fix/Flip Residential ARV Calculation Example: $100,000 purchase price ▪ $35,000rehab costs ▪ Total loan amount $135,000 ▪ After Repair Market Value = $195,000 ▪ Divide total loan amount of $135,000 by ARV of $195,000 = 69.23%
Most fix/flip financing programs include a 65% - 70% ARV.
Fix/Flip Financing for Experienced investors –Borrower must have purchased a minimum of 3investment properties in the last 3 years.
70% ARV – 600+ Score – Lending in Most States
Rate: 7.5%+ Term: 12 Months
Loan amount: $75K+ Up to 85% on Purchase Up to 75% on Refinance
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
Fix/Flip Financing for SFR and 2-4 Multi-Family & Mixed-Use: Term: 6+ Months Loan Amount: $100K to $1.25M Interest Only Starting at: 8.99% Loan to Value: Up to 90% Purchase Rehab Funds: 100% Max ARV: 75% No minimum score but credit will be reviewed No Pre-Payment Penalty Lending in most States Complete our fix/flip scenario
Having access to a LOC is what every investor needs in their arsenal. Whether it's for purchasing rental properties, rehabilitating properties, paying off balloon notes, or purchasing raw land; it's clearly a smart choice. There are a variety of LOC products for experienced and novice investors. Here are a few: http://tinyurl.com/Investor-Line-of- Credit
Joint Venture Fix/Flip Financing For Experienced Investors:
Have you directly completed at least 5 fix and flips?
Do you have limited funds and looking for a partner?
Lender will fund 100% of purchase, rehab, points, and lender costs. Lender and borrower split I/O monthly payments. Acquisition and rehab up to 65% ARV. Funding only in NJ, NY, CT, MA, and PA. More details:
Property type: SFR, Multifamily, Condo, Mixed use ▪ Loan Size: $250K - $10M ▪ Acquisition and rehab up to 60% ARV ▪ Profit share to investor 55% of Net Profit ▪ Profit share for us 45% of Net Profit ▪ FICO Score: No Min Score ▪ Term: 6-18 Months
To Apply for JV Financing, please fill out the following spreadsheet and email it to us: [email protected]
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
Buy to Hold Financing Programs
If buy and hold property is your investment strategy, you want to make sure you find a property that will yield a good return value on your investment. Buy and hold has the benefit of appreciation, which is key when it comes to a long term investment. Because over time you’ll want to see your property value increase. The condition of the home and allotted time to rehab it, if applicable, before renting it are important aspects to consider. If you are a busy investor who doesn’t have time to spend rehabbing a property, then perhaps that distressed home you just found isn’t the best candidate for a buy and hold. Know what you are able to handle before deciding if it’s worth the investment.
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
Rental Property Financing (SFR, Condo, Townhouse, 2 – 4 Units) for novice and experienced investors: Purchase, Refinance or Take Cash-out – Several financing options areavailable. Here’s one:
Prequalify for Purchase to Rent Financing or Request a Quote
• Minimum loan amount $75K• Terms are fixed for 3 and 5 years (all 30 years
amortization)• Up to 75% LTV• Rates start at 5.50%• Credit score 600+• PPP: 2% prepayment penalty if prepaid
within the first year. After the first year,there is no penalty.
• Business Entity• Experienced investors only• Lending in most states
Long Term Rental Financing
Project Type: SFR, 2–4 Units & Condos ▪ Minimum Loan Amount: $75K ▪ LTV: Up to 80% on Purchase Rate: 5.49%+ ▪ Up to 75% of Refinance & Up to 65% on Cash-out ▪ Term: 5/1 ARM, 10/1 ARM, 30-Year (Interest-Only Option) ▪ Score: 575+ ▪ DSCR: N/A
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
Rental Property Financing for Investors with a 550+ Credit Score. More Details: Property Type: SFR, Condo, Townhouse, 2 – 4 Units ▪ Loan Amount: $50K+ ▪ Rate: 6.250%+ ▪ Term: 5, 7 & 30 years fixed rates ▪ LTV: Up to 75% (Higher LTV with higher credit score) Points: 1-2 ▪ PPP: 3 Years ▪ Borrower Entity: Individual or Business Entity ▪ Lending in: AL, AR, CA, CO, CT, DC, DE, FL, GA, HI, IA, IL, IN, KY, LA, MA, MD, ME, MN, MS, NC, NH, NJ, NM, NY, OK, PA, RI, SC, TN, TX, VA, WA, WI, WV, WY
Complete our Purchase to Rent Loan Scenario Or, Request a Quote
Complete Our Quick App For Refinancing: https://www.morlinoandlathea.com/refinanceinvestorproperty.html
Loan Scenario Link:
Complete our quick app for terms
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
Commercial Financing Programs
Commercial loans are for residential properties with five units or more and mixed-use, as well as other non-residential investment properties; i.e., retail stores, office buildings, warehouses, self-storage buildings automotive repair shops and any other kind of commercial investment. The first step in commercial real estate loan underwriting is determining the appropriate net operating income (NOI). The borrower will typically s u b m i t a rent roll and a pro forma (forecasted rental income and expenses), but the lender will almost always construct their own pro forma for loan underwriting purposes. This may result in a different NOI calculation. Possible lender adjustments to NOI include increasing the vacancy and credit loss factor to account for market conditions or tenant rollover risk. After determining NOI, lenders have internal loan policy guidelines they use as underwriting criteria for different real estate projects. The two most important loan underwriting criteria used are the LTV and DSCR. Different from the residential DSCR, the commercial DSCR is the ratio of NOI to annual debt service. The reason this ratio is important to lenders is because it ensures the property has the necessary cash flow to cover the loan payments. Typically, a commercial lender wants to see a DSCR of at least 1.2 after all the expenses are paid. However, depending on the lender and loan amount, a DSCR may not be required.
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
Commercial Financing Programs for multi-family (5+ units), apartments, retail, mixed-use & office deals include:
Loan amounts: $75K+ ▪ Up to 80% LTV ▪ Rates 6%+ ▪ Credit score: 650+ ▪ Terms: 5, 7 and 30 years fixed ▪ PPP: Various ▪ No Point Option - 1 to 2 Points
No/low documentation and low score commercial financing for multi-family (5+ units), apartments, retail, mixed-use & office deals. All Property Conditions, No Tax Returns, Vacant Ok, No Debt Service, No Financials & Business Entities Only
Loan amount: $100K+ ▪ Rate: 8-13% ▪ LTV: Up to 70% ▪ Points: 3 to 4
Financing is based on as is value or purchase price (refinancing) - whichever is lower. Each property will be evaluated on a case by case basis. Financing is available in most states.
We have several options for business owners looking to buy or refinance their owner occupied commercial real estate space.
Send us your loan scenario for multi-family (5+ units), retail stores, office buildings, warehouses, self-storage buildings, and owner occupied commercial.
• Loan amounts: $250K+• LTV: 80%+• Rates: 6%+• Term: 5+ years• Credit score 660+
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
More Diverse Financing Programs
Do you want to purchase a property that needs rehab but you have rehab money? Program 1: This financing program requires no minimum credit. SFR and 1-4 units – Minimum loan amount $75K - 12 month interest only term - Up to 75% LTV (lending off the lower of purchase price or current appraised value)
Program 2: Purchase Only LTV: 80% - ARV: Not to Exceed 60% - Loan Amount: $20K - $1M Residential and Commercial Projects (LTVs may vary for commercial project) - No Residential Appraisal – BPO only – More Details
Question(s) about either program, send an inquiry email to: [email protected]
Unsecured Gap Financing for property down payments and when smaller amounts of cash are needed to purchase and/or rehab properties. This is not 2nd position financing and does not require collateral. More details:
Line of Credit - Loan amounts from $20K - 50K - Rates are 5% - 12% Term Loan - Up to $100K - Rates are 5% - 25% There’s a one-time fee that can be paid out of the proceeds of the loan amount. Credit Score: 670+ Does not hurt your credit to learn your options.
Interested? Contact us: [email protected]
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
Transactional Funding is available for both residential and commercial properties, and, can be the perfect solution for Short Sales, Wholesalers, and Flippers. Learn about this financing.
Resource for your liquidity problem. This program requires a minimum earnest deposit of
$500K.
Do you buy mortgage notes or want to buy mortgage notes?
Understanding how to buy notes at a discount, or howto determine the expected rate of return of performingassets requires a number of financial analysis tools. These are particularly useful in analyzing private moneyloans, bridge loans, rehab loans, or other hard moneyloans which can be purchased at a discount. Learn howto analyze private loans for sale.
Complete Our Quick App For Refinancing: https://www.morlinoandlathea.com/refinanceinvestorproperty.html
Loan Scenario Link:
Complete our quick app for terms
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
Download the ebook – The Millionaire Real Estate Investor
Here’s a resource for buying performing and non- performing notes: http://tinyurl.com/Morgage-Notes
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
Investor Resources
InvestorsMLS is a site formarketing, networking and finding deals - all accessible in one place for the Real EstateInvestor Community.
Questions real estate investorsfrequently ask.
Would you like to discuss which financing product is right for your strategy and personal & property profile?
We have made it convenient for you. Schedule a date & time to speak with us. http://tinyurl.com/Talk-Loan-Scenario
Don’t have access to your credit report and scores? Go to Credit Management for Entrepreneurs
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
Investor Resources Continued
Send us your loan scenario and wewill send you financing options.
Do you know other investors or small business owners seeking financing? If yes, you may be a candidate forearning up to 40% of our commission. Learn about our partner program.
Additional Resource Links
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M&L.com 973.509.1903 Ext. 1# www.MorlinoandLathea.com
What’s your investing strategy?
Send us your loan scenario
Share your investing strategy & property profile with us.
Schedule a date & time to speak with us:
http://tinyurl.com/Talk-Loan-Scenario
