Six easy steps for securing your real estate investment
1.
APPLY
You can apply for a new loan with REI Bankers, LLC by filling out our simple loan application worksheet on our website at www.reibankers.com. The loan application will ask you for the following information:
REI Bankers will immediately open a file and begin processing the information and will 2 request some basic additional documentation including:
Drivers license
LLC operating agreement
LLC EIN number
LLC articles of organization
2 months of bank statements
Title Co. contact information
Once this information has been collected you will be presented with a TERM SHEET
that outlines the loan amount, loan fees and costs, and other financial analysis of
the project. This document will be sent for your review and signature. Once you sign
and return it, we will immediately transition into the final underwriting process.
3.
UNDERWRITE
REI Bankers will work with you to confirm your purchase price, review your scope of
work for repair budget and calculate the estimated after repair value. The following
documents will be required at this time:
Purchase agreement
Scope of work for repairs
Inspection report (if applicable)
Comps to establish after repair value
Once all underwriting requirements have been met you will be presented with a
LOAN COMMITMENT LETTER which confirms the loan terms as well as any remaining conditions required to fund the loan. Once you sign and return it, REI Bankers will immediately begin drafting your loan documents and coordinating with the title company.
4.
FUND
When a closing date has been confirmed we will finalize all loan documents and
will send the to you and the title company for review including the following:
Deed of trust
Promissory note
Loan agreement
Guaranty
Escrow Agreement
We will also coordinate with your title company to send closing instructions, add
lender charges to the closing statement and wire funds. Before funds are wired we
require the following conditions be met:
Proof of payment of the insurance premium for the duration of the loan showing the lender as additional insured
Lender title insurance commitment showing the lender as additional insured
Satisfactory review of the closing statement
5.
SERVICE
If your hard money loan is a rehab/construction loan, you will most likely have to establish a construction escrow with the Lender. REI Bankers generally require 3-4 draws. At each completion phase, a draw inspection must be conducted and 5 arranged by REI Bankers before draw will be released.
6.
SELL OR REFINANCE
Within the pre-determined loan term, you must sell or refinance the property to
make certain the lender receives a full payoff of his or her loan. If you planned and
executed your acquisition and exit strategy appropriately, you should be walking 6 away from the project with a big payday.
