At WREDM.com, we try to provide you with as many resources as possible in order to help you invest in real estate. One key component of being able to invest successfully is to have financing in place to take advantage of great deals, especially since it has become increasingly challenging for investors to find financing resources to acquire and rehab properties.

We have put together a program only for our WREDM.com members to get money for the acquisition and rehab of investment properties. Not all members will necessarily qualify for this program and there are some strict guidelines, but for those that do meet the criteria this can be an excellent source of financing for you.

·         This program is designed for people that want to buy and hold property, not flipping

·         Borrower points are paid upfront at closing – therefore buyer has “skin in the game”

·         Ten points are charged to the buyer for acquiring the loan

·         No deal size is to exceed 50k including acquisition, rehab, and closing costs (except on a case by case basis)

·         RSJ provides borrowers prospective deals that have been pre-screened based on area, equity, and cash flow (Only Indianapolis deals pre-screened by RSJ Properties are eligible for this program)

·         RSJ arranges for lender-approved contractor to put bids on the subject property

·         RSJ sends potential buyers seeking hard money for deals to mortgage broker (that has been approved by the hard money lender)

·         Hard money lender receives buyer pre-qualification letter, hard money loan application, and property details for a 48 hour decision

·         Once buyer is approved by hard money lender, closing date is set

·         Borrower will be charged the following

§         10 points to be paid upfront for money lent

§         10% interest per month, payments due by the 10th of each month

§         $500 extension fee if borrower chooses to extend the 3 month balloon another month

·         Title company prepares closing documents which include:

§         3 month balloon note made out to the buyer with option of 1 month extension for $500

§         Mortgage on the property with lender in the first lien position

·         Additional documentation will include a reverse quit claim deed that is to be completed by the buyer prior to close as well as a contract from the buyer to the hard money lender authorizing the filing of the reverse quit claim deed in case of default in lieu of foreclosure

·         Borrower must purchase a 6 month insurance policy for the property, naming the lender as the payee if something were to happen to the property

·         When closing occurs, lender provides funds to acquire property for buyer as well as funds for the rehab of the property in an escrow account

·         Borrower must use a lender-approved contractor

·         In most cases, lender will provide funds for rehab to prevent delays in project completion due to lack of funds. However, borrower may use their own funds to rehab if they provide a proof of funds letter to show they are in a position to cover the rehab costs

·         RSJ will provide weekly updates of the progress of rehab (including pictures) for borrower and carbon copy lender to serve as checks and balances to ensure rehab is occurring as planned – However, RSJ is not liable for the contractor’s work

·         Draws for rehab will be released to the borrower upon completion of each phase of the rehab. (checks will be made out to the contractor)

·         Borrower must begin the refinance process with lender-approved mortgage broker within 6 weeks of the initial closing of the property or a $50/day per diem will be charged until the process begins. This will create a sense of urgency for the borrower

·         If borrower pays back loan within 2 months of initial close date, then they will receive a discount of 2 points on their next deal

·         In the case of a borrower being unable to pay back the loan by the due date, the following will occur:

§         At the end of month 3, an extension must be signed to extend the financing for an additional month

§         If the extension is not signed or the loan can not be paid back by the end of the extension, the borrower is considered to be in default

§         In case of default, lender will file the reverse quit claim deed that was provided prior to closing that will deed the property from the borrower to the lender. 

·         Borrower must be a member of WREDM.com

·         Borrower must have a minimum 680 credit score

·         Must be pre-approved to be able to refinance the subject property with a mortgage broker approved by the hard money lender

·         Must use a lender-approved contractor

·         Must use weekly report service to provide updates on rehab provided by RSJ

·         Borrower can sell the property prior to refinancing, however, the refinance process still must begin by the 6th week after the initial close

·         Properties must be approved by the lender (In most cases, RSJ will have done all pre-screening of properties prior to potential borrower presenting properties to lender

·         Deal size cannot exceed 50k (including acquisition, rehab, and closing costs)

·         Rehab cannot exceed 15K (anything past 15K is on a case by case basis)

If you are interested in either of the above programs, please complete the application below and specify which program you are interested in. The guidelines are clearly stated above, so please only apply if you meat the criteria stated.

Include loan app form