INVESTOR REHAB LOAN PROGRAM

 
Main Street Financial is a local Ohio- based lender/broker specializing in the financing of investment property purchases and rehabs. We will lend up to 80% of the after repaired value of a 1- to 4- unit residential property.  In most cases, this will allow the borrower to finance the purchase, rehab cost, finance fee and closing costs, allowing for 100% financing.
 

OUTLINE OF REHAB PROGRAM
 
Appraisal:

Always required as we believe a professionals opinion best when determining value
   
Rehab Loan Term: 6 to 12 months extensions granted on a case by case basis
   
Interest Rate: Varies according to borrower qualifications
   
Origination Fee: 5% to10% of loan amount
   
Processing Fee: $100.00
   
Repayment: Interest only, principal due at maturity
   
Personal Guarantees: Personal guaranties required on all transactions in which the Borrower is a business entity. Borrower takes title individually or as a business – we do not dictate
   
Draws:

As many as needed. Each draw will require an inspection at a cost of $100.00 each
   
One Time Application: No need to reapply for future deals
   
Miscellaneous: Loans are not reported to the credit bureau
   
  Condemned properties – these must be handled carefully but we will finance them
   
  These are commercial loans for 1-to 4-unit family properties. No owner occupied/consumer loans
   

HOW THE REHAB LOAN PROGRAM WORKS
   

First, Main Street Financial will pre-approve the borrower for the acquisition of a property in need of repair. At the same time we will pre-approve the borrower for a no-season refi of the loan just in case the borrower cannot sell the property before the maturity of the loan and needs to refinance.
   

When the borrower has located a potential property, we will help determine a preliminary opinion of value on the property. After the preliminary opinion of value has been established, one of our professional rehab consultants will inspect the property and review the borrower’s rehab estimate. After validity of the project has been established an appraisal and title work will be ordered. The cost of appraisal for all 1-thru 4-unit residential properties is $300. If the appraisal shows that the value is insufficient then the appraiser will only charge a $75 trip fee and refund the additional $225 to the borrower. The required time to fund and close the loan after appraisal, clear title, survey and hazard insurance have been acquired is typically 2 to 3 business days. We have closed deals as quickly as 3 days, however, the typical time frame from purchase offer acceptance to closing is 10 to 21 days. Based on experience the borrower will receive a minimum of $3,000 at the time of closing to start the rehab project. The balance of the rehab funds will be held in escrow and disbursed upon inspection in as many draws as are needed to complete the project. A small portion of the last draw will be withheld and the final portion of the rehab escrow will be released upon completion of the project to insure the successful completion of the project. These loans are private commercial loans and are not reported to the credit bureaus. All loans will be underwritten locally by Tom Lowry, President of Main Street Financial who exercises a “common sense” approach to the underwriting process. Because of our expertise we are even willing to lend on condemned properties. Also, if the numbers allow, we will finance some of your payments in advance, further leveraging your transaction.
   
  The borrower will have 6 to 12 months to sell the property and secure their profit. However, if you choose to hold the property, Main Street Financial can refi you into a low-rate adjustable or 30-year fixed loan.
   
  Main Street Financial also offers loans with no-seasoning issues, to finance the buyers of your finished rehab project.
   
  Main Street Financial offers the funding, fast closings, expertise (most of our loan officers are successful investors) and support that has helped our clients become some of the most successful real estate investors in Ohio.
   
   
   
   
   
   

 
   
 

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