A Few Common Questions
How quickly can you close?
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I have closed in as little as 3 days. I don't require an appraisal or have rigorous underwriting guidelines like traditional banks do. I need clear title, correct insurance in place, and a deal that makes sense.
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Why use hard money?
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Most of the properties we lend on will not pass any type of appraisal guidelines. Renovation financing is still underwritten by a bank and normally takes over 30 days to close, plus there are very few of these types of loans that are offered to investors. So, using cash is often your only option. I can lend you 100% of your renovation costs and the cost of the property. This frees up your cash and allows you to do more deals.
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Why use EMR Investments for your funding?
All lending partners are local to the Hampton Roads area and have been lending specifically to investors for over 5 years. They bring a wealth of knowledge and experience to the table and their goal is to see you succeed, and to have a long and prosperous relationship.
How do you evaluate a deal?
We evaluate a deal by viewing details of the property, looking at the scope of work, and comparing it to similar homes that are renovated and have sold nearby. Typically, we like to stay within a one-mile radius, but this search can be broadened with a unique property or one in which there are no similar comps nearby. We think like an appraiser thinks. If the numbers make sense, the deal makes sense.
What is your process?
First off, complete an application. It's easy and no credit checks are done. Once you are approved and you have a deal, I will evaluate it just like listed above. If I approve the deal, i'll issue you a proof of funds letter so you can show the wholesaler, agent, or seller you qualify just like having cash. If your offer wins the bid, we'll both sign a loan commitment letter so that you know you have the money set aside just for your deal. Before closing, the attorney will review the title binder, contract, and closing docs, and make sure the legalities are taken care of. I do need the seller to sign their closing docs first to ensure that the deal is going to close - yes, i've unfortunately had a few deals that didn't go through after i had wired money to the closing attorney's escrow account. But, our banks are fast and will wire the money to your settlement attorney ASAP. Once you've closed, completed the work for the first phase of your project, and you're ready for your first draw... let us know and we will come out and look over the work. If it is a complex or intricate renovation, or we aren't able to go out to the property, we will send an inspector to look it over. There is a $199 draw fee that will be deducted from the draw reimbursement amount. Once the renovation has been approved and mechanic's lien waiver has been signed, we will send you the money that day by a check, ACH transfer, or wire. Once your project is completed, we will inspect the work and pay you the final draw. Now it is ready to be listed or refinanced, and you will pay the interest due at closing. No monthly payments!
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