Of course!  In fact, most of our business comes from third party referrals.  We also have a program by which we pay referral fees for projects that succeed.  Many loan officers don’t have access to private money and so Rezcap Funding provides our loan officer partners with a value add.

Yes.  DSCR and Private Hard Money loans typically have a min credit score of 620.  We will review compensating factors such as mortgage payment history, homeownership history, liquid reserves, etc.

We lend on residential 1-4 family properties and entertain 5-10 unit multi families for long tenured real estate professionals and existing clients.  We do not lend on manufactured homes, land, mobile homes, or property not deeded “fee simple”.  Condo’s are available only on DSCR.

Depending on the situational specifics, it might not be.  Conventional loans, for high credit score borrowers that can qualify based on traditional income guidelines, may realize better loan terms than a DSCR loan.  But because it appears on the borrowers personal credit report, borrowers often pay a premium in rate to avoid Conventional financing.  Rezcap Funding will provide both options.

DSCR or “Debt Service Coverage Ratio” is a super important metric by which real estate investors should be aware of, even when using hard money loans. Many hard money lenders are now using DSCR ratios as a criteria for loan approval. If the market rent for a property is equal to or greater than the total housing payment (principal, interest, tax, insurance, HOA dues, or “PITIA”, you are in good shape. A DSCR ratio of 1.00 is good. A DSCR ratio of less than 1.000 means that the market rent/current lease amount, is less than the total debt/expense payment for the property and you may have a hard time refinancing out of the hard money loan and you may have over leveraged the property.

Rezcap Funding ensure that our hard money borrowers have a way out even if they intend on flipping the property. A solid contingency plan is crucial for all investors.

BRRRR stands for “buy, reheab, rent, refinance, repeat”. Buying right or wrong sets the tone for project success or failure. Ensuring that the the total spend (acquisition and renovation) is less than or equal to 70% of the After Renovated Value is crucial. Almost as important is the ability to accurately estimate renovation costs. And if you can do some of the work yourself, you have a great leg up. Be sure to use a lender that offers both “private/hard” money loans, and permanent loans such as DSCR or Conventional. Often times you will receive discounts on costs. Keep in mind each loan has costs and so it’s vital to be aware of the loan costs.