Loan Terms

RJ Financial Group can finance up to 90% of purchase price and 100% of rehab amount required. Borrower will need to bring 10% of purchase and associated closing cost at closing. Where these funds come from is not considered but reserves for 6 months of interest payment are required. Most loans will 12 months in length. All loans will be interest only. Origination fees will be 3.0.There are no pre-payment penalties. The loan amount is a maximum of 70% loan to value (70% LTV). A mortgagee’s title policy must be purchased at closing. Loans are first lien notes only.

Appraisal and Inspection

RJ Financial Group appointed appraiser/inspector will inspect the property to determine marketable condition, AS-IS Value, and the After Repaired Value. The appraisal/inspection process will also document what repairs are needed to bring the property to a good, marketable condition.

Loan Funding

A portion of the loan amount, equal to the estimated cost to bring the property to a good and marketable condition, is held back by the lender as a “rehab reserve.” Rehab reserve funds are released to the borrower in draw payments as the work is completed and inspected.

The balance of the loan amount is applied at closing toward the purchase price and other acquisition related costs as follows:

Fees

• Interest Rate – 10-12 % (5+properties 9.99%*)
• Origination – 3.0 % (Minimum fees of $3,500)
• Appraisal – Approximately $299 up front
• Processing – $0.00
• Draw Inspection – $125.00
• Wire & Courier Fee – $200.00
• Documents Prep Fee – $0.00
• Administration Fee – $0.00
• Flood Cert & Credit – $0.00