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Progressive and
100% Zero Down Investment Property Lending
For the Purchase
or Refinance of Single Family Residences, Townhomes, Condominiums and
2-4 Unit Residences. Manufacture/Mobile Homes, Raw Land, Rural or
Commercial Properties are ineligible.
OVERVIEW I
Maximize your return on investment (ROI) by putting little or no money down
on your Real Estate Investment purchases. 100% Financing is intended for
borrowers with
good to excellent credit
and acceptable debt-to-income ratios.
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Why
put money down on your next investment property, when you can buy several
properties with no money down?
With traditional financing, if you buy a $100,000 property you would need a
$10,000 down payment (10%). In some cases, a 20% down payment may be
required. With
seller paid closing cost, your out of pocket expenses would be limited
to a
homeowners insurance policy, escrows, and prepaid interest (Approx. $1,500 on a $100,000 transaction). Your
total investment is now
$11,500. Assuming you sell the property within 12 months for $120,000, your gross profit is
$18,500. Your total return on investment (ROI) is 160.87%!
With
100% Lending;
Negotiate seller paid closing costs (We will show you how to be 100%
effective in structuring purchase & sale agreements with the seller to pay
closing costs) and your out of pocket expenses are limited to the cost of a
homeowners insurance policy, escrows and prepaid interest (Approx. $1,500 on
$100,000 transaction).
Buy
using the above scenario, your profit is still $18,500. Your investment
however, is only $1,500, giving you a total
return on
investment (ROI) of 1,233.33%
Now, imagine how many properties you can buy with the same $10,000
investment. 6.67 to be exact. Multiply 6.67 transactions by $18,500 gross
profit per transaction, and now your total earning potential is $123,395 vs.
the $18,500 you would have earned by allocating all of your investment
capital into a single property with 10% down.
How
about risk of losing your capital investment?
You can't risk something you have not parted with.
It
does not take a rocket scientist to figure this one out. Just put a
calculator to it!
OVERVIEW II
We
offer several variations of 100% Investment Property Loan Programs. The loan terms
and overall structure we will recommend for your property will run in
concert with:
·
Property Intent
·
Property Class
·
Level of Borrower
Eligibility
As
with any financing; your loan is nothing more than a tool to accomplish
the task at hand. Everybody wants the 16 ounce claw hammer because it
is the most popular tool in the tool box. Experienced individuals
however, know
there are several variations to the hammer, as well as many other different
tools to choose from. One tool does not do it all. A tool should be
selected specific to the job at hand.
Throughout our relationship,
you will be given ongoing courses in understanding the various types of lending
tools and the architecture behind each one. This will enable
you to confidently make objective and educated decisions. It does not
matter to us whether you choose a 3/1 Arm with a 1Yr Soft PP, I/O Option
priced at Max YSP or; a 30-YR Fixed with a 3YR Hard PP, 2-1 Buy-down and
Escrows. What matters is; the term & structure selected, run hand in
hand with the objective of the property being purchased, does not impact
future lending continuity, and that you've chosen a tool from our tool box
and not that of someone else's.
Everybody calls looking for a 30-year fixed rate, yet when you employ
sound financial planning and levering strategies, the 30-Yr. Fixed product
is the least suitable loan product for most investors Allan Beraquit,
CFP
OVERVIEW III
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Rates |
Slightly
higher (1-2%) than Conventional Mortgages for Top Tier Borrowers and
properties, to as much as 3.5% higher than the typical
conventional mortgage for high risk borrowers & properties.
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PMI |
Not required
bridging the monthly debt service closer to that of a conventional
mortgage |
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Eligible
Properties |
Single Family,
2-4 Unit Multifamily, Condo, Town Home and Modular Housing |
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Structure |
1st Mortgage
Only. No PMI. 80/20 Combo Loans also available, however not
recommended, unless borrower and/or property are ineligible for our 1st
Mortgage Only Products. |
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Prepay Penalty |
Varies from 0-3 Yrs.
PP Penalty and terms will be structured accordingly based on the intent
& exit strategy of the property. |
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Investor |
"In-House"
Loan Product (Tier I) and Direct-Correspondent for the only other
securitized 100% Product (Tier II) on the market. |
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Ps. click here for a detailed Matrix on our 100% Loan
Programs
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