General Loan Information

Rehab financing or “hard money” is capital available for the purchase of real estate at substantially more liberal terms than offered by the traditional banking community.

Investors utilize rehab financing for the following reasons:

• Traditional banks/lenders won’t lend on the property - Traditional lenders generally won’t loan money on distressed properties.
• Rehab financing available to improve the property - Repair draws may be available to reimburse the borrower for work performed on the home. This allows the investor to ask for the highest resale value or the best rents available in the neighborhood.
• Quick Closings - Don’t miss out on the next big deal. After completing a simple, one-time application and qualification process, we can regularly close loans in less than 72 hours after receiving title commitment. Can your traditional lender do that? Qualified investors may also roll points and closing costs into the loan balance.
• Helping to buy multiple properties – Since you are able to purchase property with little or no money down and can then refinance off the appraised repaired value, an investor can buy several properties since cash reserves will not be liquidated. Most investors realize that the fees of rehab financing loans are regained over time. There is also a benefit of not having to pay PMI. An investor can also get more favorable rates for their permanent mortgage (when refinancing) due to the lower loan-to-value.
• The loan can close in a business name with the borrower signing a personal guarantee – If you do not have a business set up, you can easily set up a DBA (Doing Business As) at the county for a nominal fee.
• Interest only payments - Low interest-only payments provide flexibility to the investor and have less of an impact on cash flow.
• Quick Closings - Don’t miss out on the next big deal. After completing a simple, one-time application and qualification process, we can regularly close loans in less than 72 hours after receiving title commitment. Qualified investors may roll fees and closing costs into the loan balance. Can your traditional lender do that?
• Flexible Terms - Investor Lending Services has a loan that is right for you. We will advance up to 100% of acquisition and rehab costs – up to 70% of ARV – with loan amounts from $20,000 to $1,000,000+ per transaction.
• Direct Lender - Investor Lending Services is a direct lender. Unlike a hard money broker, all approval decisions are made on-site by us. Wouldn’t it be nice to deal with the lender directly?
• Customer Service - Investor Lending Services has built its business on referrals by providing superior customer service. We want to earn your business the same way.

We have several Financing Options for the real estate investor to choose from depending on their need. Most investors find that our loan programs are less expensive than most of the rehab money available in the market, with much less hassle. Once approved as a borrower, all you do is submit the executed purchase contract along with our one-page Loan Request Form, one-page Repair Detail Form, and Property Analysis Fee, and we can close within 10 working days. With clear, insurable title, and satisfactory appraised value, we can have documents and funding within 72 hours!

Please note that all fees except the Analysis Fee can be financed into the loan (purchase price plus some, or all, closing costs, as long as LTV requirements are
met). Go to the Financing Options page for information about the details and costs of our various programs. This means if you buy the property right, you can buy all your houses with nothing down except for the Property Analysis Fee!

Also, be aware that our fees, and amount loaned varies by state.

Below is some general information regarding our loan programs:

• Eligible Borrowers
  The property is the primary collateral for each loan. However, your credit and ability to repay the loan are both considered in providing you the most cost effective terms as a borrower. Investor Lending Services is always able to provide you with a pre-approval letter to submit when making offers.
• Where Can We Go
  We lend on single family houses, and on a case-by-case basis multi family houses and commercial property, in many metropolitan cities.
• Max Loan Amount
  For properties needing repairs, the maximum loan amount is 65% to 70% of the "after repaired value" (ARV) of the property, depending on your credit history.
• Repair Funds
  For houses that need work, funds are held in reserve to fund the repairs. These funds are released to you in draw payments as work is completed and inspected.
• Terms
  A typical loan is for either two months (for our Wholesale “Quickturn” Loan) or six months (for our “Residential Rehab” Loan). Our Financing Options page provides a full detailing of all costs involved for each loan program. A builder's risk hazard insurance policy or a vacant dwelling policy for the loan term is required to be in force at closing. Flood insurance is required if the property is in a FEMA designated flood zone. See our Insurance Requirements page for more information.

If you have any questions, please feel free to call us at (713) 440-9000 or use our convenient Contact Form.