The               5
             Things to Consider
             When Applying for a
             Hard Money Loan

CreativeREO                                                  Tel: (615) 657-9103
PO Box 148202         w w w. c r e a t i v e r e o . c o m   Fax: (866) 822-9058
Nashville, TN 37214                                
     The 5 Most Important Things to Consider
      When Applying for a Hard Money Loan

Hard Money: A Loan for All Occasions
                                                     Typically, the larger hard money          assemble pools of investors from regions
Hard money loans are                            companies have dealt with loans $1 mil         like the Southwest, Northwest, and East
about openness, speed,                          or better, and have charged steep upfront      Coast, but lacked a cohesive product they
    and creativity.                             commitment fees, exit fees, in-lieu-of-        could really advertise or about which they
                                                equity fees, and other fees which you
     With credit markets still thawing,         have probably never even heard of,
hard money lenders are offering                 let alone paid on previous
borrowers unfettered access to the largest      transactions. That left deals under          “H ar d m on ey lo an s ar e
pool of funds concentrated solely on real       $1 mil, and more precisely, deals
estate transactions.                            under $250,000 (by far the more               as se t- ba se d lo an s. It ’s
                                                prevalent real estate transaction
     Still, to grab the funds you need
                                                throughout the country) in a limbo           si m pl y al l ab ou t va lu e.
access to the lenders, which at times, can
                                                where private lenders were nearly
be a tough proposition. There is no
single be-all end-all list of private lenders
                                                impossible to find.                                      Pe ri od .”
operating across the country, and there              Private Lenders are Highly
never will be.                                  Localized. The private lenders that
                                                were available to fund the smaller deals
     Private lenders come in all shapes                                                        could generate buzz. Then a few real
                                                were very local in nature.       Nashville
and sizes, ranging from individual                                                             estate blogs and internet forums started to
                                                lenders lent only in Nashville, Chicago
investors lending from a retirement                                                            unite investors from across the country
                                                lenders only in Chicago, and California
account to mom and pop shops with a                                                            who posted deals online for all to see.
                                                lenders...well you get the point. A few
credit line and large corporate hard                                                           This increased the flow of private money,
                                                stand out brokerage firms were able to
money lenders with securitization.                                                             but rarely did these sites qualify or restrict

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anything that was posted; often resulting              principals have been involved in
in pages of rehashed deals that could                  over $200 million in residential
never be funded. Thus began the broker                 and commercial rehab and                               The
daisy chain, by which one broker caught                development financing, in the                        Most Important
wind of a deal, and without a funding                  U.S. and abroad.
source, brought that deal to another                                                                  Things to Consider
broker, then another, then another; until                   In the process, we’ve
one real estate transaction had 15 brokers             developed a hard money system                 When Applying for a
and no lenders.                                        second to none, giving you, the               Hard Money Loan
                                                       real estate investor, access to
     When brokers finally did hook up                   money in your own backyard,
with a lender, her guidelines were usually             even though we’re not.
so convoluted the broker rarely
understood what documents were needed                       As a service to our borrowers,                Loan-to-value is a ratio comparing
or what the lender’s loan parameters even              we’ve put together this document, The 5       the requested loan amount to the subject
looked like.                                           Most Important Things to Consider             property’s value. For instance, a loan
                                                       When Applying for a Hard Money                request for $100,000 on a property worth
     In the end, all it did was frustrate              Loan, to bring even more transparency         $200,000 is a request for a 50% LTV
borrowers, waste time, and give hard                   to the world of private lending; and to       loan ($100,000 / $200,000 = 50%).
money lending a bad name.                              help our borrowers better understand the
                                                       process through which we analyze and               Loan-to-cost ratio is the ratio
      Te c h n o l o g y m a k e s H a r d             approve your loans.                           comparing the requested loan amount to
Money Lending a Safer Bet. As real                                                                   the cost of the project. For example, if
estate companies moved online, research                     In our experience, borrowers who         you were in contract to purchase a
became easier and money began flowing                   heed this advice will find their loans close   property for $50,000 that needed $25,000
across state lines. Platforms like Google              with a higher percentage of success, and      worth of rehab work, and we’re
Maps and Zillow made it easier for                     much more quickly than expected.              requesting a $60,000 loan, you’d be
lenders to view property that wasn’t in                                                              asking for a loan at 80% of cost
their backyards. Title searches were                        We hope you enjoy this report, and
                                                                                                     ($60,000 / $75,000 = 80%).
possible wholly online, and public records             hope you’ll drop us a note when your
were accessible through the internet too.              next project is ready for financing.                 Loan-to-value and loan-to-cost
Foreclosure lists went viral and lenders                                                             ratios are known as maximum loan
shed the “only lend at home” mentality                                                               guidelines. This means the hard money
in favor of bigger returns abroad.                                                                   lender is not willing to lend over those
                                                                                                     amounts. For instance, a lender willing to

      Enter CreativeREO. That’s                                                                      lend 80% of cost on a property with a
where we come in. Relying on the latest                                                              purchase price of $100,000 means they
in cloud computing, and decades old,                                                                 will offer no more than an $80,000, and
p rove n u n d e r w r i t i n g t e ch n i q u e s,      It’s All About Value                       the borrower will have to bring the
CreativeREO has built a stable of                                                                    difference to the closing table. In this
private, individual and corporate lenders                   Hard money loans are asset-based         case, 20% or $20,000.
that spans the country.                                loans, which means the value of the
                                                       property is the main underwriting                 Some lenders combine the two
      Offering rates as low as 9%, we                  concern. This is a stark contrast with        maximum ratios, and offer a loan at the
place loans for our investors on virtually             conventional loans, which use credit          lower of the two guidelines. Here’s an
every property type, and can close in as               scores as the chief underwriting criteria.    example of how that looks:
little as 72 hours; with programs for                  For hard money lending, credit is one of
foreclosures, short sales, bank REOs,                  the last factors considered, if it is              You have found a single family
auctions, rehabs, ground up construction,              considered at all.                            residence on the market with a purchase
rate and term refinances, cash-out                                                                    price of $160,000. The property is worth
refinances, regular everyday purchases,                      Hard money lenders underwrite            $200,000, because it is a pre-foreclosure.
and even business and franchise loans.                 their loans by looking at two value ratios;   It is in good shape and and needs no
                                                       the loan-to-value ratio and the loan-to-      work. The lender is offering the lower of
    Since 2005, we have funded over                    cost ratio; known as LTV and LTC              80% of purchase price or 60% of value.
$50 million in direct loans, and our                   respectively.                                 The LTV guideline of 60% would allow

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 “You get one chance to make                   Hard Money Loan
   a good first impression”                     Transactions by CreativeREO
a loan of $120,000 (60% x $200,000),
whereas the 80% LTC guideline would
recommend a maximum loan amount of
$128,000 (80% X $160,000). The LTV                 RESIDENTIAL                                      AMOUNT               % LTV/LTC
guideline is more restrictive and results in
the lower loan amount ($120,000), and in           3 Family Building, Purchase, Elmhurst, NY        $240,000             80%
this case would be the final offer by the
lender.                                            Single Family Residence Purchase, CT             $150,000             80%

     Sometimes, a lender may be willing            Single Family Residence Purchase, PA             $192,000             80%
to extend the amount offered on the
                                                   SFR Ground-up Construction, Seattle, WA          $800,000             100%
front-end if they can share in the
potential profits on the back end.                  Duplex Purchase Loan, New York, NY               $152,000             80%
Lenders accomplish this by using what’s
called a Shared Appreciation Mortgage,             SFR Purchase and Rehab, Nashville, TN            $75,000              87%
or SAM.
                                                   SFR Cash-out Refinance, Pennsylvania              $60,000              50%
     On projects with particularly high
potential back end profits, like those
where significant rehabs are creating high          COMMERCIAL                                       AMOUNT               % LTV/LTC
increases in value, SAMs allow the
investor to borrow more money up front,            10 Units, Refinance, New York, NY                 $350,000             50%
which helps them defray the costs of the
rehab and extend the reach of their cash.          6 Acres Raw Land, Long Island, NY                $300,000             50%
Some lenders will extend SAMs to cover
                                                   Restaurant Refinance and Cash-out, NJ             $325,000             50%
100% of the project cost, which allows
the developer/investor to complete their           Office Building Refinance, Houston, TN             $700,000             70%
work without using a dollar of their own
money. However, in these cases, where              8 Units Purchase and Rehab Loan                  $460,000             80%
the project is completed using only the
lender’s money, the lender expects a good          Retail Business Refinance, Seattle, WA            $80,000              25%
share of the profits in the back-end,
                                                   18 Units Multifamily, Orange County, CA          $750,000             75%
usually 25-50%. In most cases, SAMs

                                               Submit Your Loan Scenario Now
                                                    Three easy solutions to an                 documents which help us get a better
                                               answer in under 24 hours. At                    picture of your project, and sometimes of
                                               CreativeREO we offer three simple               you as an investor. We’ve done enough
                                               solutions to submit your loan scenario.         loans to know what we need in almost
                                               You can fill out our online loan request         any property situation. Our goal is speed,
                                               form, or download our loan application          but not to forsake accuracy.
                                               and addendum via the link to the left,
                                               and either scan and email it back to us or           Our promise to you: We promise
                                               fax it to us at 866-822-9058. Either            to return your phone call, answer your
                                               option you choose, we will contact you in       email, or provide a quote on a loan
Submit your loan scenario now online or        24 hours, or less, with a quick quote or to     submission within 24 hours. If the
                                                                                               submission is incomplete and we cannot
  download our loan application and            request more information.
                                                                                               provide a quote we will still call you to
                                                   Just a few simple docs to a loan            request more info so we can run the file
                                               approval. Many hard money lenders               completely. We don’t like wasting our
                                               request more documents than they need.          time, and we certainly don’t like wasting
                                               At CreativeREO we ask for only those            yours. 24 hours or less - it’s our promise.
    “Neat, concise documents
    go to the top of the list!”
 still present a very good deal for the           at the closing table and the ability to
 b o r r o w e r, w h o c a n c o m p l e t e a   draw up to 60% of the ARV throughout
 transaction with very little of his own          the rehab period. The borrower gets a
 cash, if any at all, and still make a            $60,000 loan at close (60% LTV X
 handsome profit when the project is               $100,000), which can grow to a
 complete.                                        maximum loan amount of $90,000 (60%
                                                  LTV X $150,000) when the project is
         Another creative hard money loan         complete.      That means the borrower
 transaction occurs when the lender allows        receives $60,000 at loan close, and the
 for the purchase, rehab, and cash-out            remainder, $30,000, is placed in an
 refinance of a property; all inside a single            escrow account, which can be
 loan with a single close. These                             tapped through a series of
 loans are possible when the buyer                             draws as rehab work is
 can purchase at a price point                                 completed.    The borrower
 which is just a fraction of the                               would therefore bring only           CreativeREO lends throughout
 property’s true market value.                                $5,000 to the closing table in        the United States, with emphasis
 This is not uncommon in short                               cash, to make up the difference        on the East and West Coasts,
 sales, pre-foreclosures,
 f o r e c l o s u r e s, a n d e ve n
                                                            between the purchase price and          and throughout the South.
                                                           the loan she received ($65,000 -
 auctions.                                                $60,000 = $5,000). Upfront, the
                                                         deal is completed as 60% of value,
      For instance, an investor
                                                       but represents a loan-to-cost ratio of
 finds a single family home valued at
                                                  92% ($60,000 / $65,000). Since the
 $100,000, needing $25,000 worth of
                                                  rehab work only totals $25,000, there will
 work, after which it could be sold for
                                                  be $5,000 left in the draw account at
 $150,000. Because the property is a short
                                                  project completion. When the project is
 sale, the buyer is able to negotiate a
                                                  certified complete by an appraiser, the
 purchase price of just $65,000. The hard
                                                  remaining $5,000 will be released to the
 money lender is offering a 60% loan,
                                                  buyer, which replenishes the down
 based on both current value and after
                                                  payment they fronted, and can help with
 repair value (ARV), which means she will
                                                  marketing and sales costs. In the end, the
 give the buyer 60% of the current value

                                                  Creativity in Mission...
                                                       The word “Creative” is in our company name, and we make it our
                                                  mission to approach your loan creatively. Each project is unique, from the smallest
                                                  single family home to the largest commercial megastructure. We’ve completed loans
                                                  ranging from $25,000 to more than $20 million. We look at the fundamentals of each deal,
                                                  and make our decisions based on a variety of factors including property value, investor
                                                  experience, and project risk.

                                                       Loans for virtually any property type. Single family homes, 1-4 units,
                                                  apartments and multifamily, mixed-use, industrial, commercial, hotel & resort, strip malls,
 CreativeREO will fund virtually any              auto dealers, gas stations, churches, funeral homes, bars, restaurants, night clubs,
property type from raw land, to places of         franchises, single tenant retail, marinas, and even golf courses - we have experience with
   worship, apartments, condos, and               them all.
          everything in between.
                                                       If clean title can be obtained, chances are we can make a loan on it, and close in 14
                                                  days or less.
loan represents a total loan-to-cost of       lender a thorough understanding of the               approaches his project in a creative way.
100%. All of the buyer’s costs are            project, its risks, and its potential rewards.       Your first deal with that lender may
covered, including the purchase price,                                                             require you putting in slightly more
rehab costs, and even a return of the              A good executive summary should                 money than you had planned, but with
original down payment.                        have the following elements:                         success on that deal, the lender may offer
                                                                                                   easier terms on the next loan. Remember,
     As you can see, value and cost play a         • Property Address
                                                                                                   a good borrower is just as valuable to a
crucial role in hard money loan                    • Current value, aka “as-is” value
                                                                                                   hard money lender as the lender is to the
underwriting. The better you understand            • Purchase price                                borrower. It is very much a symbiotic
the value of your property in relation to          • Rehab costs (if any)                          relationship.
the cost of the project you can work               • After repair value (ARV)
creatively with your lender to build a loan
that works beautifully for both parties.
                                                   • Loan request
                                                   • Timeline to complete the project
                 #2                                It doesn’t matter if you list these
                                                                                                       Documents Matter
                                              items in a table or in paragraph format as                If your project is an exciting one,
        The Executive                         long as all the information is there, and            and your executive summary is presented
                                              presented in a clear, concise manner.
         Summary                                                                                   in such a way to interest a hard money
                                                                                                   lender, you will probably be asked to
                                                   Too often borrowers leave out
      Value and cost are your first                                                                 submit documents to confirm items
                                              important information and lenders can’t
considerations when assessing potential                                                            contained in your executive summary.
                                              properly analyze the potential
projects. Once you have a handle on
                                              transaction; forcing the lender to pass on                  These documents are designed to
how much the project will cost in relation
                                              the deal, or offer ridiculously low terms to         give the lender a better understanding of
to its value, you should begin to assess
                                              account for missing information or a                 your investing experience and your ability
how much money, if any, you can bring
                                              higher perceived project risk.               Some    to complete the project in the way you
to the transaction. This will ultimately
                                              borrowers purposely leave information                say you can.             They also confirm
determine the amount of loan you will
                                              off the executive summary, knowing a                 i n fo r m at i o n a b o u t t h e p ro p e r t y,
need to complete the project. That loan
                                              certain ratio may be beyond the lender’s             important financial data, and even
amount is used as the basis of your loan
                                              scope. This is not wise. Before any                  potential issues that might occur during
request and your project’s Executive
                                              money changes hands, the lender will                 the loan term.             Believe it or not,
                                                    check, and double check,                       submitting these documents can even
     The Executive Summary is a                         everything from property value             help protect you; the borrower.
short, concise letter listing                            to lien releases. It’s very hard,
project details, explaining                                if not impossible, to slip                   Lenders have access to certain
value and cost parameters,                                   something past a smart hard           resources that borrowers may not,
and requesting a particular                                   money lender. When you               including legal databases and title
loan amount.                                                   try to be shifty with               searches. Sometimes lenders are able to
                                                                documentation all you              find flaws in the deal which the borrower
    The executive                                               accomplish is making               may have missed, saving the borrower
summary is your first,                                         yo u r s e l f l o o k l i k e a n   from potential problems down the line.
and sometimes only,                                   amateur and alienating yourself
chance to make a good                           from a potential funding source.                        The following documents are
impression with the lender.                                                                        typically collected by hard money
                                                   If your ratios are tight you have two           lenders:
    That’s why the executive summary is       options. You can look for a lender with
such an important document, and for                                                                      • Personal financial statement
                                              looser ratios or call attention to those
hard money loans, it is second only the       ratios up front, highlight other areas of                  • Letter of Investing Experience
property’s actual value.                      the project which might be mitigating                      • Exit Strategy Letter
                                              factors, and ask the lender for some                       • Proof of Funds
     There is no page count limit for a                                                                  • Corporate Documents
                                              leeway. You may not win your case, but
good executive summary, though a good
                                              you will gain the respect of the lender
one will be long enough to explain the
                                              and become known as an investor who
project in such a manner to give the

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      If you are completing a purchase transaction you will                  Proof of funds may be required if the loan you are
eventually have to turn in a completed, mutually agreed upon,           requesting is not covering your entire cost. For example, some
purchase and sale agreement. If you are refinancing, you will            lenders provide only funds for you to complete a property
need to show current ownership and current mortgage statements.         purchase. If you plan on rehabbing the property you’ll need to
If you are getting cash out, you’ll need to demonstrate the use of      show the lender you have ample resources to complete that rehab.
funds. Rehab loans require cost estimates, but actual contractor        Even lenders who offer purchase loans, but not rehab money, may
bids are even better. Ground-up construction requires permits,          not approve you for a purchase only loan if they know the
architectural drawings, and contractor agreements. Knowing the          property needs substantial work and you don’t have the funds to
documents you need before you apply, and making them available          complete the rehab.
for the lender, will save you time in the loan approval process.
                                                                              Finally, if you plan to take title to your property under a
     Most hard money loans are recourse to the borrower, and            business entity you will likely be asked to supply corporate
knowing a borrower’s financial positions makes it easier for the         formation documents like articles of incorporation or formation,
lender to assess a project. While infusing cash into a hard money       business licenses, and federal tax ID numbers. In addition to
deal is not a requirement, it is preferred. Again, considering          taking a lien on the property, some lenders will take out UCC
value , the lower the LTV the lower the risk for the lender and the     liens on the business entity too. This is further protection for the
higher your chances of being approved quickly. Borrowers with           lender and more motivation for the borrower to repay the loan as
higher cash reserves and net worths will get more favorable terms       promised.
than borrowers strapped to the hilt with debt. The personal
financial statement is designed to display the borrower’s financials
in an easy to read format.                                                                            #4
     Similarly, investing experience can play an important role in
whether your hard money loan is approved with competitive
                                                                                           Know Your Exit
terms. The letter of experience is a great way to show off success           One of the documents you’ll be required to supply before
on prior projects, and to highlight your investing skill. Whether or    closing a hard money loan is the exit strategy letter. This is the
not this document is required, it’s always a good idea to include it,   fourth most important thing to consider when applying for a hard
especially if you have relevant licensing like a real estate broker     money loan. Your exit strategy explains to the lender how you will
license or a contractor license.                                        end your project and repay the loan you are requesting.

     The exit strategy letter is a requirement, which we’ll explain           Be careful, and realistic, with your strategy, because an ill-
next as the fourth most important thing to consider when                conceived exit could knock even the best loan right out of
applying for a hard money loan.                                         underwriting. To simply say you will sell the property for a profit
                                                                        and repay the loan is not an exit strategy. To simply say you plan
                                                                        to refinance the requested loan when it comes to term is not an
                                                                        exit strategy. To say you’ll rent the property and pay for the loan
                 Access to Capital                                      from rental income is not an exit strategy. These three things are
                                                                        known to every hard money lender, and will be his course of
                                                                        action should he need to take the property back from you.
                                                                        However, as an investor and borrower your exit strategy has to be
                                                                        more thought out, more thoroughly researched, and much more

                                                                             If you plan to rehab and sell the property, tell the lender why
                                                                        you think the property is a good buy compared to other properties
                                                                        in the immediate area. Show comparable sales, highlight your
                                                                        experience selling similar property, or talk about your sales and
                                                                        marketing team, or how experienced your agent or broker is with
 2007                                                                   these types of properties. If you plan to hold the property and
                          2009                                          rent it, show the lender you know the market; get rental comps
                                        2010                            from local managers, or take it a step further and engage the
                                                                        management company to provide services for you when the
      Hard Money Lending               Conventional Credit              project is complete.

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     Since most hard money lenders are making loans on                 lenders will tell you that more money in a deal makes them feel
investment properties only, refinancing as your only exit strategy is   more comfortable making the loan.
no strategy at all. If you can’t sell or rent a property you may
need to refinance, but you shouldn’t approach the lender with                Having “skin in the game” tells the lender you are serious
refinancing as your primary exit. When you get closer to the loan       about your investment, and if things go bad you will be less likely
term, and if you have not yet sold or rented the property, the         to run away from a transaction in which your money is invested
lender will likely encourage you to begin looking for a refinance,      too. Even on deals at 100% of cost, the lender will want you to
or to extend your existing loan with them, for a small fee.            have some cash reserves to cover intangibles that seem to popup at
                                                                       the most inopportune times. Contractors submit change requests
      Remember, your exit strategy will be confirmed by a broker        half-way through the job, you find out the foundation needs more
price opinion, or appraisal, ordered by the lender before a            work than you initially thought, or maybe the subfloor is rotted
commitment to lend is offered. There is no fooling the lender          and needs to be completely replaced instead of just being
here; as she will only be looking at confirmed values listed on         refinished. These are all things that can add cost to your budget,
those reports. The value is either                                                                    and if you run out of room in
there or it is not. If the numbers                                                                     your draw reserve you’ll have to
don’t support your exit strategy                                                                       cover those costs personally.
the lender may reduce the loan                                                                         Without reserves your project
amount or increase the fees to                                                                         runs the risk of stalling, and once
account for the higher perceived                                                                       a project stalls the chances are it
risk.                                                                                                  will stay stalled and never be
                                                                                                       completed. That’s bad news for
     Of course, appraisers are                                                                         you and the lender.
not infallible. If there is a clear
mistake made in valuing the                                                                             Also, most lenders who lend on
property, the appraisal or BPO                                                                          rehab deals will fund the draw
can be redone, or the borrower                                                                          only after you have done the
might be invited to submit his                                                                          improvements and the work has
own comps, but don’t count on                                                                           been inspected and confirmed
every lender being so gracious.                                                                         installed. This means you may
                                                                                                        have to front the rehab costs a
     A successful investor thinks                                      week or two at a time until the draw request is approved. Having
about his exit even before he purchases, and begins implementing       a few dollars on the side, or access to credit cards or credit lines,
his marketing and sales strategy from they day he gets the             should give you the room you need to make these deals work, and
property under contract. He is also proactive with appraisers and      to make the hard money lender happy.
brokers doing price opinions. Investors with access to a local
MLS can run his own comps or CMA reports and give them
directly to the appraiser or broker. There’s no guarantee those
comps will be used in the final report, but most brokers and                Ready to Submit Your Loan?
appraisers will tell you that kind of preparation is welcome, and if
relevant, will weigh into the final value and the finished report.            CreativeREO makes it a breeze to submit your loan. You
                                                                       can submit through our online form, or download an application

                                                                       for printing and faxing or emailing to us. For a quicker response,
                                                                       we recommend calling us to give a quick introduction to the deal
                                                                       and to let us run some quick numbers for you over the phone.
                      Cash is King                                          We make it a priority to give our borrowers a quick answer.
     It’s worth repeating: Cash is King! A borrower who promises       If we can’t make a loan we’ll let you know right away so you can
to bring cash to the table will find his loan approved much faster,     move on to other lenders. If the project and the numbers look
and with better terms than a borrower who tries to max out the         good, we’ll get started right away and move toward the
LTV.                                                                   documentation and underwriting phase.

     There is no rule of thumb to follow when determining how                In most cases, we can fund your deal in 10 days or less.
much cash makes the process move faster. One extra dollar in the       More complex deals may take a few extra days, but in general, as
deal doesn’t increase your chance of approval by 1%, but most          soon as we confirm numbers, analyze the deal, confirm value, and
                                                                       get clean title - we’re ready to close.

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Required                                       Rehab Loan Draw Requests
Executive Summary
A short, succinct letter explaining the
property, its features, what makes it an
attractive investment, and exactly how
much money you are requesting and how
long you need to borrow it.

Exit Strategy

A letter explaining how you plan to repay
the loan.        Simply saying you will
refinance at loan term
d o e s n o t w o rk .
Show you’ve put
some thought
into how you will
sell or rent the
property, and more importantly how you
will return the lender’s money...on time.

Letter of Experience                           CreativeREO offers a single-close rehab loan program by which you can
A letter explaining your real estate
                                               purchase and rehab your property and take cash out for marketing & sales.
investing experience. Your experience
lends credibility to the claims in your exit
strategy. List any licenses or certifications     The Single-Close                            some cases even on a weekly basis, as
                                                                                             opposed to larger banks which only
you may have, and any similar properties           Rehab Loan                                allow draws on a monthly basis. This
you have bought, rehabbed, or sold.                                                          means you don’t go too long between
                                                     We didn’t invent it, but we kept it     payments; something your contractors
Personal Financial Statement                   alive as others were shutting their doors.    and sub-contractors will be more than
The financial statement shows your              The single-close rehab loan is a dream        happy to hear.
assets, liabilities, and net worth. The        come true for rehab investors and single
higher your net worth the better.              family home developers.                            Constant communication
Borrowers with cash in the deal get                                                          fosters better projects. We also
                                                    With the single close rehab loan,        provide you with a webpage tailored to
premium pricing, and much lower
                                               you can get funds to:                         your project, which allows you to keep in
interest rates fees.
                                                    • Purchase the property                  constant contact with us, title, brokers,
Purchase and Sale Agreement                         • Rehab it                               other investors, and third party
                                                    • Get Cash-out                           providers.    You can view up to the
If you are using a hard money loan to
                                                                                             minute amortization schedules, project
purchase a property expect to furnish a              You get all of that in just one loan,   calendars, loan documents, closing
copy of the purchase and sales agreement       without having to refinance at the end of      documents, even submit draw requests,
before the loan closes. Refinances              the project, and without having to pay                         and view project
obviously don’t require this document,         exit or extension fees.                                            pictures. You can
but do require proof of ownership and
                                                                                                                   view a sample
clean title.                                        The single close rehab loan is
                                                                                                                   project site here.
                                               perfect for investors who turn
Credit Reports                                 multiple properties per year. It                                  The single-close
While excellent credit is not required for     gives them the flexibility they need                          rehab loan - call us today
hard money loans we do check credit            between projects, and allows them                     to submit your project.
reports to make sure you do not have a         to free up cash for other
history of defaulting on loans, claiming       acquisitions.                                               (615) 657-9103
bankruptcy, or working out short pays
                                                   Draws can be completed
with your creditors and lenders.
                                               on a bi-weekly basis, and in
Creative financing for real
estate transactions Nationwide
                                                there’s a way to get it done, we will do it,
      Creativity is our                         quickly.
                                                    If it’s never been done before, we’ll
     Some companies just make loans,            do whatever we can to help blaze a new
but we like to think of our job as creative     path and get your project up and
problem solvers. That’s the way we              running; quickly.
approach each project, and the way we
deal with each investor who calls us for a            Some investors have even come to us
loan, for advice, or just to talk about the     to run multiple properties in a single
market.                                         transaction. Others prefer to do just one
                                                at a time, several times a year.
     We are constantly pushing our
investors to offer new products, and                 Whatever your preference, we will
respond quickly to market changes,              work with you to create a loan program
especially when the needs of our                that accommodates your project and
borrowers are constantly changing too.          allows you to turn a nice profit in process.    “Serious investors trust
    S e r i o u s I n v e s t o r s Tr u s t         We are CreativeREO; and we
CreativeREO. There’s good reason why            provide creative financing for real estate
many of our clients come back to                transactions nationwide.
CreativeREO time and time again. If

                                               PO Box 148202
                                               Nashville, TN 37214
                                                   Tel: (615) 657-9103
                                                   Fax: (866) 822-9058

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