Show Us the Asset

We'll Show You the Money!

We Evaluate Your Asset, Not Your Credit or Income

With conventional lenders unable to fund the avalanche of REOs, short sales, and the over-abundance of other profitable opportunities, Private Money has become the only option for those wanting to successfully and quickly (5-7 working days) close their escrows.

We finance based on the strength of your asset rather than your income or credit scores. We have a simple formula to establish the fair market After Rehab Value (ARV) of your property, and we determine your maximum loan amount based on this value.

What is a Private Money Loan? A Private Money Loan is the use of a private cash lender to fund an investor real estate transaction. The lender reaps a healthy interest rate and the investor is able to avoid the myriad roadblocks set by conventional lenders, quickly and painlessly funding their deals.

It's a fact: The time is right for purchasing fix and flips. Using our private money sources many investors are averaging $50-$70K (or more!) in net profits from buying property at wholesale values, and then quickly rehabilitating and selling. We are making fast and easy loans to real estate investors and entrepreneurs who are willing, ready and able to roll up their sleeves and make a profit cleaning up the real estate industry.

All loans have costs and Private Money is no different, but it costs much more to sit on your thumbs and wait for funding promised by a desperate mortgage broker with conventional sources while a savvy cash buyer beats you to the punch.

Wouldn't you like to be that buyer? Together we can make it happen. Just fill out the "Asset Based Loan Application" at the bottom of this page. We will call you with your options and, if approved, fund your deal in 5-7 working days.

Educating Investors since 2003: For the last seven years we have helped thousands of investors to learn, network and prosper through the Los Angeles Real Estate Investors Club. To learn more about Real Estate investing, go to our website and download the free training CD's.

Nuts and Bolts

Before we explain further, let's clarify some terms: “ARV” means After Rehab Value; “Rehab” means repairs necessary to make property sell at the retail level; “30/1”, or “30 due in one”, means the monthly payment is based on 30-year amortization but due as a balloon payment in one year. The monthly payments with a 30/1 mortgage will be slightly higher than the accrued interest.

Now, let's say you find a wholesale property in an auction or through a REO real estate agent. The first thing you need to do is to determine the ARV (After Rehab Value). For this you can consult with us here at Investor Funding Resources, consult with a real estate agent who knows the area, or get a short appraisal. (It's best to talk with us before ordering an appraisal to see if it’s worth the expense.)

The next thing is to determine the full Rehab cost to make the property ready for a retail buyer. Rehab costs can be estimated by a contractor, qualified real estate agent, etc.

Once you have these two figures (the ARV and the rehab costs), we can determine the maximum loan amount simply by taking 60% of the ARV and subtracting the estimated rehab cost. At our discretion may go as high as 65% of the ARV in areas where the market is stronger. On some deals we may offer a first and second mortgage up to a Combined Loan to Value (CLTV) ratio of 75% of the ARV.

On every deal the property investor must put down 10%, with a minimum of $10,000. This is to protect our Private Money Lenders by ensuring that everyone has “skin in the game”.

Let's take an example in which the purchase price is $260,000, the ARV is determined to be $400,000 and the Rehab costs are $30,000. 60% of the ARV would be $240,000, minus the $30,000 in rehab costs, leaving us with a maximum loan amount of $210,000. In this case the investor would have to come to the deal with $50,000 to make up the difference between the loan amount and purchase price in addition to the closing, rehab, and carrying costs.

Investor Funding Resources only arranges financing for investment properties; we do not offer financing for owner-occupied properties or 2nd homes.

Here is an example of the terms for a typical private money loan:

· Minimum Down Payment: 10% of the purchase price

· Loan Position: First trust deed, second trust deed

· LTV max: 60%-65% depending on location (CLTV max: 75% in some cases.)

· Cost: 4-5 points + miscellaneous fees (underwriting, escrow, title insurance, etc.)

· Term: 30/1

· Interest Rate: 10%-15%

There are thousands of great deals out there, and we will be happy to help you evaluate them and assist you in the due diligence process. Contact us with your deal today. Perhaps you’ll establish a solid relationship with a source of quick funds that you will use over and over - until you have made enough to fund your own deals!

If you would like help to discuss a deal, Contact Us, or fill out and submit the "Asset Based Loan Application" below.