Private Mortgage Programs
Expert Mortgage Group can typically make a private mortgage up to 65% of a property's market value. That's right, market value, not sales price! For example, if a buyer can negotiate a purchase price that is below current market value, then part of your down payment is already taken care of. Check out the following scenarios...
SCENARIO 1: Traditionally banks will only lend based on the sales price of any property, and this is what we will explore in this scenario. In this scenario we will have a prospective buyer called "Bob" and he flips houses. Bob has a credit score in the high 600's and $35,000 to use towards a down payment and to fix the house. Bob found a foreclosure that he wants to buy, fix up, and sell. He has negotiated a purchase price of $80,000, and the property's market value is $100,000. Bob has applied for a loan at the bank, and the bank has approved him for a 70% loan of the sales price ($56,000) if he can produce 3 years of tax returns, 2 months of pay stubs, 3 months of bank statements, and verify all of his loans are up to date and paid on time. The bank quotes him $9,200 in closing costs and says they can close in 45 days. This means Bob is putting down $24,000 plus the $9,200 for closing costs for a total of $33,200. Bob is discouraged because this will leave him with virtually no money to fix the house.
SCENARIO 2: Bob calls Expert Mortgage Group (EMG for short) and tells them about his situation with the bank. EMG takes into account that: 1) Bob has done a good job of negotiating the purchase price of the property he wants to buy, 2) Bob has experience with flipping real estate in the past, and 3) Bob doesn't want to wait 45 days to close. EMG offers Bob a 65% loan based on the property's market value of $100,000, so the loan to Bob would be $65,000. EMG needs one year of tax returns, one month of pay stubs and one month of bank statements. EMG quotes him $9,200 for closing costs and can close in 14 to 21 days. Bob will put down $15,000 plus the $9,200 for closing costs for a total of $24,200. Bob is excited because this will leave him over $10,000 to fix the house.
CONCLUSION: Bob wants to feel comfortable flipping the house he has chosen so he doesn't have to skimp or cut corners. He decides Expert Mortgage Group gives him the best overall comfort level because they work with what Bob has to offer, can close quickly, and Bob will have enough money to properly fix the house and maximize his profit.
Expert Mortgage Group's note terms are typically 6 month to 36 month balloons. The payments are interest only and the interest rate ranges from 9%-15% by primary factors such as equity level, down payment, loan to value, property condition, and use of funds.
We also consider other secondary factors when making private loans such as rehab or flipping experience, construction experience, cross-collateral, non traditional assets, gift funds, partnerships, credit, employment, future value of a property, any many more.
We have flexibility you will not find at banks and lenders! Fill out the quick quote form on the left side of the website or call us today to discuss your situation.