LOAN APPROVAL PROCESS

Vintage Real Estate Fund receives many inquiries each week about funding for numerous projects. These inquiries come mostly from known loan brokers, real estate agents, builders, and developers who are familiar with Vintage Real Estate Fund, its partners and the terms and loan process.

Most of these loans are pre-screened before reaching our loan approval committee. Out of 100 inquiries, roughly 3 loans are funded. Those that are funded have passed through our partner committee, which meets each Monday.

Private Money Approval Process and Criteria
Vintage Real Estate Fund _ Utah's Premier Alterivate Lender

In addition to reviewing appraisals, comparables, and MLS sales Data, Vintage Real Estate Fund has a policy that requires a partner or an authorized representative to have located and physically inspected the property for risk factors that may make the collateral undesirable for the fund or potential buyers down the road.
Vintage Real Estate Fund follows a very detailed due diligence, but with a relatively short due diligence period since we fund all of our projects in Utah. Because of the shorter due diligence timeline, Vintage Real Estate Fund relies heavily on our business partners in title and insurance. We work with only a select group of companies with whom we have very close business relationships, have a strong Utah base and a great reputation.

PRIVATE LENDING &
LEVERAGED RETURNS

There are two vital benefits to using private lending that you need to understand to be successful in house flipping:
– Leveraged Returns
– Ability to Grow and Diversify

Compare outcome of 2 Alternatively Funded Real Estate Investments:
DEAL #1 Funding an investment project : ALL CASH
DEAL #2 Funding an investment project : PARTIAL CASH + PARTIAL PRIVATE MONEY LOAN

See how utilizing private money loans allow the borrower to diversify their funds & risk allowing their returns to potentially multiply:

DEAL #1: ALL CASH INVESTMENT


Your flip is expected to cost $200,000 with the purchase price and rehab combined.
You use your personal $200,000 in cash and fund the rehab yourself.
If you can sell the house for the projected ‘After Repair Value’ (ARV) of $250,000, you will profit $50,000 on your $200,000 investment.
This gives you a 25% profit margin.


CONCLUSION:
You can take your $200,000 and tie it all up in one all-cash flip at a time:
$200,000 = $200,000 project x 1 project
= $50,000 profit
(Flip Time / ROI Time = 6-8 months)

DEAL #2: PARTIAL CASH + PARTIAL PML (PRIVATE MONEY LOAN)


Your flip is expected to cost $200,000 with the purchase price and rehab combined.
You use your personal investment of $50,000 in cash + private money loan for $150,000.
With the loan fees added in, your new projected costs will increase from $200,000 to $215,000.
If the house sells for the projected ARV of $250,000, after repaying the private money loan, you will profit $35,000.
However, since you only invested $50,000 of your own cash (instead of $200,000), your Return on Investment (ROI) is 70%!
**That’s almost 3 times more than you’d make in the same deal using all cash.


CONCLUSION:
You can use that same money and have 4 projects going simultaneously using private money loans:
$200,000 Investment = $50,000/project X 4 projects
= $35,000 profit/project x 4 projects
= $140,000
(Flip Time / ROI Time = 6-8 months)

**If you profit $35,000 on each of the flips, you’ve just made $140,000 in the same amount of time that you would have made $50,000 in the all-cash flip!

UNIQUE
BENEFITS

A distinct benefit in utilizing Hard Money loans over Conventional financing options is the factor determining approval of funds is not based on credit “worthiness” but entirely on the value of the property itself. This plays a very large role in helping expedite the overall timeline of the approval & funding process.

TYPES OF PROPERTIES

  • Non-Owner Occupied Residential
  • Multifamily
  • Retail
  • Office
  • Industrial
  • Vacant Buildings
  • Entitled Land

ADDITIONAL LOAN CRITERIA

Location: Utah only.
Loan Amounts: $100,000 – $1,000,000+
Origination Fee: Varies depending on the length of the term.
Loan Maturities: 3 to 12 months, no prepayment penalty. Extensions available.
Loan to Value: Up to 70% LTV.
3rd Party Junior Financing: Permitted.
Closing Costs: Standard third party costs such as title and escrow.

PRIVATE MONEY BENEFITS

Time is an extremely crucial component of both smaller house-flipping investments as well as more large-scale development projects. The longer funding takes the more at risk of losing out on a particular investment property or project the investor becomes.
**WE CAN APPROVE & FUND A LOAN IN AS QUICKLY AS 48 HOURS!**
Another beneficial aspect of utilizing Private Money loans over Conventional financing options is the factor determining approval of funds is not based on credit “worthiness” but entirely on the value of the property itself. This plays a very large role in helping expedite the overall timeline of the approval funding process.

OUR COMMITMENT

We are committed to upholding our most cherished values in every project and task we take on. Our team can help walk you through the process of achieving financial freedom through real estate investing – Setup a Free Consultation Today!

Alternative Funding for Real Estate Investments