Private Money Lending Process for Flip Projects and Bridge Loans


LOAN UNDERWRITING

  1. Complete the short IvySun Capital Loan Questionnaire

  2. If the initial review is favorable, complete a Loan Application

  3. Complete the IvySun Capital Project Analysis spreadsheet (Includes scope of the project, duration, anticipated sale date, purchase price, closing costs, holding costs, financing costs, renovation estimates, selling costs, anticipated sale price, comparables, etc.)

  4. Photos or video of the project provided to IvySun Capital

  5. Submit items on the Borrower Checklist

  6. Rate and Term Agreement: We determine the terms of the loan together then sign the Rate and Term Sheet.

PURCHASE TO SALE

Purchase: Notify IvySun Capital of the closing time and date. You provide IvySun Capital contact information for the closing agent or attorney. IvySun Capital works with the closing agent to fund the purchase and provide all necessary documents.

Renovation: Funds for the renovation are dispersed in phases based on your Draw Agreement. You will provide brief periodic updates with photos to Steve Iverson at ivysun3@gmail.com.

Sale: You provide IvySyn Capital contact information for the closing agent. IvySun Capital works with you and the closing agent to complete the sale. 

TERMS

Terms vary for each project. Variables effecting terms include the nature, size, and risk of the project, the credit worthiness and level of experience of the borrower, and other variables.

Loan Amount: 60% to 100% of the total purchase, renovation, holding, financing, and transaction costs.

Loan to After Repair Value: 60% to 70%.

Length of Loan: Typically 3 to 6 months. Extensions are typically available.

Principal Payment: At end of loan

Interest Payments: Interest-only payments are due during the loan. Some interest payments may be financed into the loan, resulting in no payments due for an initial period of time. 

Early Payoff: Allowed and prorated to date of payoff after minimum requirements.

Points: Varies based on project and borrower.

Interest Rate: Varies based on project and borrower.

Extension of Loan: Usually possible with an extension fee and adjustment to the interest rate.

Processing Fee: $395