Contents
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Who Is Lender's Wholesale
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Our Story
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Why are you talking to us?
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What we offer
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Let's build business
Let's Build Business
The fastest way to build your business is focusing on one product type at a time and going after builders/investors with that need.
Requirements:
- Builder or Investor must be an entity (no individuals)
- Investor/profit purposes (no personal residence builds)
- Residential 1-4 units and low-rise multi-family
- 30 doors experience (SFR) and 200 units multi-family
- Like kind property – (product type needs to be same as the loan)
- They must be on title of the property the work was completed on (part of an entity or their entity).
- Multiple people with experience combined in an entity, we will merge all ownership experience to reach 30 doors.
- Like kind property – (product type needs to be same as the loan)
The Power of Communication
Terminology
| LTV | Loan to Value | Current value. |
| LTC | Loan to Cost | Total cost tof the project. Includes: land (purchased or payoff), construction, and financing charges |
| FV | Finished Value | Value of the project at completion. |
| Holdback | the amount of the loan held in an account for disbursement through the construction process. | |
| Interest Reserves | This is the interest charges that are push aside out of the loan to make the interest payments on the loan for the builder throughout the duration of the loan. |
ENGAGING THE BUILDER, BRIDGE THE GAP
The first product that can assist your builder:
A Bridge Loan
Why?
Time
Current Conditions A Bridge Loan Can Help:
- They have a hard money loan that has a balloon/balance due.
- Their reserve account is depleted, and they are cutting payments monthly for the interest.
- They have elected to keep the property a little longer and delay the sale.
- They want to keep it as a model home.
How Does It Work?
- The Bridge Loan will payoff the existing loan.
- It will replenish the interest reserve funds (out of the new loan) so the Builder is not paying monthly payments.
- It can give the Builder more time to sell or rent it out to see if they want to portfolio it.
- They want to pull some cash out of the model they have paid to start a new build.
The first product that can assist your investor:
FIX & FLIP / REHABILITATION LOAN
We have the option for a light rehab, or a major rehab.
| Type | LTC | FV LTV |
| Purchase | 90% Total Cost | 75% |
| Refinance | 85% Cost Paid | 79% |
What can be covered?
light rehab:
Rehab budget GREATER than $0 but LESS THAN the current AS-IS market value
Work scope is typical of the following:
- Flooring
- Paint
- Plumbing fixtures
- Lighting
- Kitchen remodel
- Bathroom remodel
heavy rehab:
Rehab budget GREATER than or EQUAL TO 100% o AS-IS value
Involves 20% expansion of property ( greater than 750 sq ft) or involves a change of use.
Work scope is typical of light rehab with other major items:
- Foundation
- Roof
- A/C - Furnace
- Doors and windows
Minimum of one wall must remain standing throughout. Construction
Cannot have a Finished Value greater than 3x initial AS-IS value or Acquisition price if within 18 months
ENGAGING THE BUILDER, BRIDGE THE GAP
The second product that can assist your builder:
Construction Completion Loan
Why?
Money
Current Conditions a Construction Completion Loan Can Help:
- They have a hard money loan that has a balloon/balance due.
- Their reserve account is depleted, and they are cutting payments monthly for the interest.
- The budget was short due to overages or delays, and they need to revamp the project.
- They want to leave their current lender due to fees, depleted interest reserves, poor service, horrible draw process.
- The Construction Completion Loan will payoff the existing loan and lender.
- The loan will replenish the interest reserve funds (out of the new loan) so the Builder is not paying monthly payments.
- The loan will replenish the holdback (budget) for the project to get completed.
- It restarts the build clock for the Builder allowing them to get back on track to finish.
There are limits to cash out, see your Regional Manager for additional questions.
The third and most needed product that can assist your builder:
NEW CONSTRUCTION
Why: It Is Needed!
- LOTS IN A SUBDIVISION
YES WE CAN FINANCE MORE THAN 4 AT A TIME!
- SINGLE INFILL LOTS
- TOWNHOMES
- CONDOS
- DUPLEX/TRIPEX/FOURPLEX
- LARGE PARCEL FOR A SINGLE HOME OR MULTI-FAMILY
AS ZONING IS ALLOWED/APPROVED
NEW CONSTRUCTION GUIDELINES
| Type | LTC | FV LTV |
| 1 - 4 Units | 82.5% or LESS | 70% |
| 1 - 4 Units | 82.5% to 85% | 65% |
| Multi-Family | 85% or less | 65% |
| NO PERMITS | 60% AS IS | VALUE |
| If Owned 18 Months + | Current Value by Appraisal |
New Construction Guidelines are the same for a purchase or a refinance.
Loan amounts are determined by the costs and finished values.
Permits must be ready or purchase at closing.
Appraisal are required to include for current value and future completion value.
See ownership requirements.
Navigation Requirements
What we need:
- Purchase price (or what they paid for the land)
- Budget for construction
- Estimated sale price on completion
- Loan term - How long will it take them to build and sale/refinance
- Property must be "shovel ready" to issue permits.
SHARING THE OPTIONS (1-4 UNIT)
| Loan Type | Why | LTC | FV LTV |
| Bridge | Loan Reset / Hold | 85% Cost Paid | 70% |
| Fix & Flip / Rehab Purchase | Investor / Improvement | 90% Total Cost | 75% |
| Fix & Flip / Rehab Refinance | Investor / Improvement | 85% Cost Paid | 70% |
| Contruction Completion | Loan Reset / Change Lender | 85% Cost Paid | 70% |
| New Construction (P/R) | Permit Ready Build | 82.5% or Less | 70% |
| New Construction (P/R) | Permit Ready Build | 82.5% to 85% | 70% |
THANK YOU
Lender’s Wholesale
888-475-2226
Broker@LendersWholesale.com