Answers to Frequently Asked Questions

 

What are the benefits of using a "Private Investor"?

  • Two key benefits are the speed in which we can close a transaction and our ability to fund properties in any condition.  If you have a great buy, you don't want to spend 30-90 days attempting to get traditional bank financing.  We close all funding in 14 business days.  Also, traditional banks and mortgage lenders often decline loans on distressed properties due to restrictive guidelines and property condition; and traditional bank loans typically require large down payments and do not include money for the repair costs leaving the investor short of necessary funds to complete the project. 

Do I get repair money with Autumnwood Funding?

  • Our Central Ohio Fix & Flip Joint Venture Program and our Central Ohio Investor Repair Loan provide repair funds through construction draws.    

 

What is the typical deal?

  • A typical deal would be a 9 month term of $50,000 to $250,000 for a single family investment property.  However, our programs are flexible to meet your needs. 

 

Do you offer refi loans?

 

  • We typically lend on the purchase and repairs. However, our Central Ohio Investor Repair Loan provides repair funding for properties that have already been bought with cash.

 

When is the down payment paid by the investor?

 

  • The down payment is given directly to the title company closing the transaction the day before closing.

 

Do you require two years federal tax returns?

 

  • No, we do not require federal, state or city tax returns.

 

How much cash do I need?

 

  • Enough for the down payment (10-20% of the purchase and repairs), 9 months of interest payments, plus any other foreseeable cash outlays.

 

How is the Joint Venture Profit Share calculated?

 

  • We begin with the sale proceeds after typical closing costs - which is usually the bottom line on the HUD 1 closing statement.  We then repay our principle funding balance and your down payment.  The remaining "profit"  is split at the pre-determined percentage.  By keeping the formula simple we do not have to review the investor's expenses or other records.

 

Is there a minimum or maximum funding amount?

 

  • We do not have a minimum or maximum funding dollar amount, however when considering a project for funding, we compare the ARV (After Repair Value) of the subject property to the median sale price of that metropolitan area. In Central Ohio, we most commonly approve projects with an ARV of $100,000 - $400,000. 

 

How do you calculate loan to value?

 

  • We use after repair value (ARV) which we determine by our in-house evaluation of the property and broker opinion letters we obtain.

 

How does my credit score affect the funding decision?

 

  • Our minimum credit score is 620 for the Joint Venture Program and 680 for the other loan programs.

 

Is there a prepayment penalty? 

 

  • No, there is never a prepayment penalty.  We encourage early payment.

 

Do you lend on owner occupied dwellings?

 

  • No. We provide funding only to real estate investors for non-owner occupied investment properties.

 

Do you lend on homes that are occupied by tenants or other third parties?

 

  • Only if approved in writing ahead of time. Typically, we require that the home be vacant from the time our funding is approved to when the home is sold and we are paid off.

 

What are your insurance requirements?

 

  • We require a prepaid property and liability insurance policy.  

 

Do you only fund in Ohio?

 

  • Yes, primarily houses and condos within the greater Columbus metropolitan area.

 

What is your policy on investors who do not live in the state where the subject property is located?

 

  • We will consider this scenario on a joint venture basis or if there is a co-signer who lives in the same city as the subject property.  We have made exceptions to experienced and financially qualified investors who reside outside the city/state where the subject property is located and who have demonstrated experience flipping two or more out of city/state properties.

 

How fast can I receive property improvement draws?

 

  • We usually fund your draw request within three days of receipt of your emailed draw request with progress photos.

 

How many draws do I get?

 

  • In addition to the draw to purchase the home, you will receive 1-4 additional draws depending on the size of the project and your cash reserves. 

 

What is the interest rate?

 

  • Our interest rate is 1% per month (12% annuallized).

 

How is the interest calculated?

 

  • Calculate your monthly payment by multiplying the total loan amount by (.01). 

    • Example: 100,000 x .01 = $1,000 per month

 

What percentage of the project do you fund?

 

  • We fund 80-90% of the project (depending on the program), up to the applicable ARV (After Repair Value) limit.

 

Do you have specific property criteria?

 

  • We prefer SINGLE FAMILY homes that have at least 3 bedrooms and 1 1/2 bathrooms.  Also, we like homes that have garages and basements.  There are always exceptions; homes with slabs would be considered if most of the neighborhood has slab homes.  Also, two bedrooms would be considered in subdivisions where two bedrooms are the norm and in the case of condos. 

 

Do you offer commercial loans for commercial real estate like apartment buildings or retails centers?

 

  • Not generally, but we might consider commercial projects on a case by case basis in the greater Columbus Ohio area.

 

Do you loan on rural properties?

 

  • We prefer single family subdivision properties.

 

Do you offer permanent financing?  

 

  • No, we do not offer long-term financing. 

 

How long does it take to get approved?

 

 

How long does it take to fund a loan?

 

  • We can fund within 14 days of receipt of a Purchase Agreement and approved application.  In some instances we can accommodate a faster close.

 

If I am buying an investment property, do I have to personally sign? 

 

  • Yes. We require everyone to sign personally and corporately, if applicable. 

 

Will my business partners or spouse have to sign? 

 

  • Yes, all partners and spouses will have to sign. 

 

How is the funding secured for an investment property purchase?

 

  • By a Promissory Note, Mortgage, Land Contract, or holding title, depending on the program and circumstances.

 

How many projects can I have with your company at one time?

 

  • Many customers have two deals at a time and some customers have several active deals at one time.  Exactly how many will depend on your cash reserves, financial ability and a proven track record.  

 

Do I need a survey?

 

  • We will waive the survey for a survey waiver fee, if there appears to be no encroachments.  Also, we would accept any survey performed in the last six months. 

 

Do you inspect the property?

 

  • Yes, we inspect the property before closing, and reserve the right to inspect before each draw is dispersed.    

 

Do I need an appraisal?

 

  • Providing an appraisal is not required, but providing a comparable property report or Broker Price Opinion is encouraged and will help speed up the closing. It will assist in arriving at an accurate property valuation. 

 

How long is your normal rehab funding term?

 

  • Our normal rehab funding term is 9 months.

 

What if I want to keep the property as a rental?

 

  • If your plan is to hold the property, we require a verified pre-approval letter from the lender from whom you plan to obtain permanent financing.

 

Can the funding term be extended? 

 

  • Yes, we can approve extensions for a fee of 1% for each 30 day extension.   

 

How do I get started?

 

  • Visit our Application Process Page to get started.  Call and discuss your situation and complete your online application or mail in your completed application.

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Tel:  614-433-9100

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