LOANS and LENDING

MCMCS Checklist

MCMCS LOAN APPLICATION(1)

 

Account Executive: Warren Strycker, 928 345-1200

Send completed application to: warren.strycker@patriotlendingusa.com

FIX & FLIP

At the heart of FLIP is a proven 5-stage model that really works in any market:

  1. FIND: Select ideal neighborhoods, search for houses and attract sellers.
    2. ANALYZE: Identify the improvements, and analyze the profit potential.
    3. BUY: Arrange financing, present the offer and close on the purchase.

This is where we pitch in to make financing easy and flawless so you can                         concentrate on other things that matter. We want you to be successful.

  1. FIX: Develop and execute an improvement plan on time and in budget.
    5. SELL: Add finishing touches to quickly sell for maximum profit.

 

LTC and LTV FINANCING

It is important to properly UNDERSTAND how the financing for these                                       hard money loans work and provide a clear picture of what it will look like.

In order to achieve this, consider the following scenario example for a Fix N Flip:
Borrower: ABC 123 LLC wants to purchase a property to repair and then resell at the higher value. They need financing for both the purchase and the rehab budget.

We lend up to 90% of the TOTAL COST

Purchase Price: $80,000 + Rehab Budget: $20,000 = TOTAL COST: $100,000 In the case above, the total cost is then multiplied by 90% because that is what we can finance. The calculated loan amount is $90,000.

Keep in mind, the loan amount cannot exceed 70% of the ARV, therefore the property has to appraise for at least $129,000 for the figures to stay as is.

To calculate the LTV, you would take the ARV of $129,000 and multiply                                            by 70% = $90,300 The borrower is required to then bring out of pocket the                             10% Down Payment ($10,000) + Closing Costs.

While you will have to invest some money into the deal, it is very minimal compared to the extremely high out of pocket expenses of self-funding.

“I work with the experts at MCM Capital Solutions and  Patriot Lending USA, the Nation’s Premier Lender for Real Estate Investors — make it easy on yourself.” (Warren Strycker).

Fast & Efficient Pre-Approval Process

Maximum loan: $5M+

GET ACQUAINTED

MCM Holdings, Inc. is an FHA approved lender that abides by all of the regulations laid out by the CFPB, FHA, FNMA, etc. The Non-QM loans of today are not like the sub-prime loans that were common before the crash. All of the loans follow the strict guidance of the regulatory committees referenced above and comply with ATR – Ability to Repay.

Patriot Lending is changing the landscape of lending for consumers. Having highly competitive and straightforward rates, various loan programs, and an unbeatable customer service, the company is growing to become a leader in financing.

Through Patriot Lending, the process of buying a home has never been simpler. With our knowledge and guidance, we will help all of our consumers reach the goal of becoming homeowners.

With Account Executives and Loan Officers spread across the country, we have been able to provide our customers unlimited access to information, insight, and guidance. Our success and growth has been rooted in our adaptability to the market, dynamic staff, solid process, unparalleled passion, and unwavering commitment to its clients.

Fix N Flip (FNF)

Looking to purchase and rehab a property?

Fixing and flipping homes is a great source of income, but it can be difficult to find the right funding. In order to renovate a home and flip it for a profit, you need sufficient capital.

This is the most beneficial loan for investors that need to leverage their money and additional funding to complete the purchase and rehabilitation of a property for resale.

Financing is up to 90% of the Loan-to -Cost (LTC) and up to 70% of the After-Repair Value (ARV). This loan product has terms up to 13 months and payments are interest only. The main purpose is to rehab and resell the property as quickly as possible to maximize profit.
Construction Ground Up (CGU)

This loan is designated for brand new construction properties that are going to be built on an empty lot of land. Financing is up to 90% of the Loan-to-Cost (LTC) and up to 70% of the After-Repair Value (ARV). The terms for this loan product are up to 13 months and payments are interest only. The property must be built and sold within the timeframe of the loan. The contractor completing the work must be vetted and approved by our construction department.

BRIDGE LOAN

The bridge loan product is for investors who are in the transition of selling a property and need financing to purchase another property in the meantime that property is being sold.

The terms for this loan is up to 24 months. This product is highly beneficial for investors because it allows them to purchase their next property without having to wait until the transaction of the property they are selling is completed. In other words, it removes the interval period between the sale of a property and purchase of another.

Cash Out Refinance

The cash out refinance product is for investors who already own a non-owner-occupied property and would like to cash out on the equity of that property. The subject property must be free and clear or have enough equity to payoff the current mortgage and receive cash back. Borrowers can cash out on their property up to 70% LTV.

Example: If they have a property that is worth $100,000 that is free and clear, they can cash out up to $70,000 of the value.

Eligible Properties

1-4 Unit non-owner occupied (investment) properties
Planned Unit Developments (PUDs)

Properties with ≤ 2 acres (2+ acres case by case cannot be in rural area setting)
Log homes (if common to the area)

Condos (FNF only)

Townhomes (FNF only)

Multi-Family (FNF only)

Properties subject to oil or gas leases

Loan amounts more than $1 million (excluding CA properties) require 2 subject-to appraisals, completed by different appraisers

HARD MONEY LOAN PROCESS

The Hard Money Loan process may take 10 to 15 days on average to get the loan closed. Every loan is different, some may take less than others and some may take a bit longer. In order to qualify an investor and complete their loan transaction several steps must be taken.

Step 1: Pre-qualification

As a lender, we need to determine the financial capacity that a borrower has to not only begin the rehab work but make at least 6 months of interest payments. For FNF and CGU loans, we mainly look at the individual’s assets to ensure that they are able to afford the loan payments, the start of rehab, and the cash to close.

The first step is to pre-qualify the client by doing the following:
• Collect a Completed Application
• Bank/ Account Statement verifying necessary assets
o Screenshot of account acceptable

Once those two items are received, we will go over the scenario that the borrower needs funding for and determine if they have enough liquidity to afford the loan. In addition, we will review the application submitted and ensure they have the following requirements:
• Entity under their name that will be used as the borrower
• We run a soft pull of your FICO to make sure you have the minimum score

If you have the assets, entity and the minimum FICO requirements, we will notify that you do qualify based on the basic information provided.

Step 2: Application and Initial Submission

Once done with prequalification and you announce your intent to proceed from the borrower we will continue with the financing process, we will collect the rest of the document requirements to submit the loan, including…

– $650 App Fee
– Legible photo copy of government ID
– Rehab/ Construction Budget
– Purchase Contract of the subject property
– 2 months bank/account statements
– Corporate Documents*
Articles of Incorporation
Operating Agreement/ By Laws
Certificate of Good Standing (screenshot allowed)
*If you use a DBA, we’ll need both original entity and DBA documents

For CGU Loans ONLY

– Construction Plans/ Specs
– Contractor Vetting Application with required items

Step 3: Submitting File to Intake

Once you have collected the above-mentioned items and have a complete application signed along with an intent to proceed; You may submit the file to the intake department. The intake coordinator will review the file and make sure that all the necessary items have been provided. Then, the intake coordinator will be responsible for ordering credit, appraisal, inspection, flood certification and title documentation.

Step 4: Underwriting and Processing

Once appraisal has been completed and the title items have been provided, the intake coordinator will move the file to Processing. The Processor’s job is to review all the documents provided, underwrite the file based on the investor guidelines and generate a conditional approval with a list of items that are needed from the borrower, appraiser, title company, etc. Once all items have been collected, the loan will be sent to the investor’s underwriting department for a “Final Review.” If all items have been provided, the underwriter will issue a Clear to Close.

Step 5: Closing and Funding

Once the file has a Clear to Close, it will be sent to the Closing Department for Doc Prep. They will reach out to the title, finalize fees and confirm the scheduling of the closing. Once fees have been finalized and a closing package has been generated, the borrower will sign the documents and wait up to 24 hours for funding. The initial funding amount is for the purchase and fees, the rehab budget will be transferred to a controlled escrow account for draws. The borrower must use their funds initially to complete the item work, and then request reimbursement from the escrow account.

Step 6 Construction/ Rehab Draw Management

The budget funds that were financed for the project are held in a MCMCS controlled escrow account. The borrower accesses the funds submiting Draw Requests for withdrawal of funds.

The following are the steps that must be taken to complete a draw request:

  1. Complete the Draw Request worksheet with the items that need to be reimbursed
    a. Soft items that have invoices or are documents such as surveys, plans etc. do not need an inspection. Simply need to provide the document and/or invoice of the item along with request.
  2. Send the completed worksheet to drawrequests@mcmcapitalsolutions.com. If it is the first time completing a draw, then wiring instructions must also be provided.3. The construction department will process the request and order an inspection for approval of work completed. (The inspection is typically completed within 48hrs of request)
  3. Inspection fee is $200 per draw request and is deducted from the draw amount.
    a. Draws over $20,000 are also reviewed and approved by the Department Director.
  4. Funds are disbursed to the borrower within 2 business days after inspection completion.
    a. Overall turnaround for draws are 4 business days.6. MCMCS sends the updated draw log via email detailing which budget line items have been approved.

For CGU, there are phase inspections that are performed throughout the process aside from the draw request inspections:
• Initial Site
• Foundation Pre-Pour
• Foundation Post-Pour
• Pre-drywall
• Final

The cost for each is $200.00 and will be deducted from the draw.

BE PREPARED TO RESPOND

Are you interested in our loan products — are you currently looking for a property to invest in or do you have one under contract?

If you have a property are you prepared with property information, Purchase Price, Rehab, ARV (After Repair Value), and Address.

If you do not have a property, what are you looking for  — or what scenario on your own.

Have you purchased and rehabbed any properties in the last 24 months?

What is your credit score?

Based on the numbers discussed, you will need about $$$$, do you have these funds available?

What do think about the options I’ve discussed with you so far?

If positive response: Based on our conversation, what would you like to happen next?

Application

When the lead has a property under contract or placed an offer, send them an application with an EOC based on numbers discussed. Also, request for an asset statement showing the funds available. See below:

Pre-Approval

Do not need to send an application out for a pre-approval.

Call Warren Strycker (928 345-1200) when I can help. (I’ve got my “ears” on — 928 345-1200).

(born with a great sense of humor until 8 pm —  yes, I start early).

MCM Holdings, Inc. is an FHA approved lender that abides by all of the regulations laid out by the CFPB, FHA, FNMA, etc. The Non-QM loans of today are not like the sub-prime loans that were common before the crash. All of the loans follow the strict guidance of the regulatory committees referenced above and comply with ATR – Ability to Repay.

Get approval NOW.

Let’s look at your project

Download checklist and application below.

Check the checklist to guide you through the paperwork.

Fill out application (Be as completed as possible).

Email completed forms to warren.strycker@patriotlendingUSA.com.

Your project will be reviewed quickly. Any questions will be resolved.

Let’s get started. Call Warren Strycker, account executive, at 928 345-1200 with questions.

MCMCS Checklist

MCMCS LOAN APPLICATION(1)

 

Maximum loan: $5M+
Account Executive: Warren Strycker, 928 345-1200

Send completed application to: warren.strycker@patriotlendingusa.com

Revolutionizing 

the Real Estate Industry!