Residential Fix & Flip Guidance (As of 11/25/2020)
Loan Amount
- Min: $50,000
- Max: $1,500,000 [>$1,500,000 on exception]
Maximum Loan to Cost
- 90% of Purchase Price [not to exceed 90% LTC]
- 100% Rehab Costs
Maximum Loan to ARV
- 70% [75% on exception]
FICO
- If past Bankruptcy or Foreclosure: 12 month IR
Term Length
- Up to 12 months
Recourse
- Full Recourse
- Pledge of Shares [1% increase in rate for no pledge]
Experience
- All Levels Considered
Profit Test
- Minimum $15,000
Borrower Pricing
- 10/2+ for experience score = 4,5
- 5/2+ for experience score = 3
- Loans < $150,000 full boat mandatory
- Above terms do not include broker point(s) – broker must add
Required Documents for Approval
- Application with Personal Financial Statement
- Valid government issued ID
- Purchase agreement/contract
- Proposed scope of work
- Entity Documents / Proof of business ownership
- Title
- Hazard Insurance (Builders Risk Policy issued by Nautilus, Scottsdale, Seneca or Lloyds of London)
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"Total Merchant Resources is a game changer in the sense that it can help you get capital to fund inventory, receivables, whatever you need regardless of what business you are in."
Kevin O'leary (Aka. Mr. Wonderful) Businessman, author, politician, and television personality
"I rather see a small business take a loan from Total Merchant Resources than a bank because they'll at least care and work with them."
Mark Cuban American billionaire, entrepreneur, television personality, media proprietor and investor.