top of page

Property Considerations

  • Primarily 1 to 4 unit residential rehab and resale properties.

  • Will consider multi-unit properties or commercial, if very secure deal

  • Must be non-owner occupied

  • Focus primarily in New Mexico but will consider other states

  • Properties must be in active, desirable neighborhoods

 

Borrower Considerations

  • Must be or use highly qualified, experienced contractor(s)

  • Portfolio of successful projects highly desirable

  • Borrower credit score will be evaluated but not key decision criteria

 

Loan Parameters Charged to Project

  • 3 to 12 month terms

  • 12%-15% annual interest paid on cash invested by both Lender and Borrower

  • Interest reserve built in for the term of the loan

  • Generally 3 to 5 points

  • Loan size of $50,000 to 1,000,000+

  • No prepayment penalty

  • Up to 70% loan ARV (After Repair Value)

  • Split Equity

  • Can fund purchase and rehab with adequate collateral

  • Possibly fund interest escrow, points and closing costs as well with adequate collateral and the abiliy to show skin-in-the-game by both parties

​
Deal Parameters

  • Set up as borrower/ lender relationship only

  • Deal must be safe and profitable for both parties

  • Both parties must show skin-in-the-game.

    • The following may qualify:

      • Cross collateral of other NOO property, either by borrower or other

      • Seller carry-back behind funding

      • Additional personal Guarantor with adequate credit score and sufficient financials 

 

​

 

Lending Criteria

bottom of page