We offer loan programs for the following residential real estate investment purposes: Fix and Flip, Acquisition, Investment Real Estate Refinance, New Construction, Bridge Loans. Lead Funding provides Residential Real Estate Investor loans in Arizona, Colorado, and Washington state. For cannabis industry loans we operate in all states where cannabis is legal. Eligibility is primarily based on the asset and project scope. Lead Funding considers credit and financials as well. However, we do not require a hard credit pull and there are no minimum credit requirements. Our average loan size is $450k and loan amounts range from $50,000 to $10,000,000. All of our loans are business purpose, short term (1-3 years), interest only with no amortization, and secured with a 1st Deed of Trust and title insurance. We only loan against commercial and residential real estate.
Residential Real Estate Loan Programs
Loan Programs for Colorado, Arizona, and Washington state residential real estate investment projects.
Rates: Two Standard Options
Option 1:
- 2 Points, 13% interest rate, with one time loan doc fee of $1000 or $1500 for all loans above
- First 4 months of interest, points and loan doc fee due at closing with no payments until 120 days after closing
- Term: 1 year
Option 2:
- 2 Points, 11% interest rate, with one time loan doc fee of $1000 or $1500 for all loans above $350,000
- First 3 months of interest, points and loan doc fee due at closing with no payments until 90 days after closing
- Term: 6 months
Eligibility – General Documentation Guidelines:
- All loan programs require Corporate and personal guaranties
- Credit Score ‘snapshot’ (no ‘hard pull’ requirements)
- Bank statement or “snap shot” to verify borrower’s liquidity to complete remodel and service debt
- Completed Lead Funding application from all principals
- Copies of driver’s licensees from all principals
- Hazard and property insurance for the subject property naming Lead Funding, LLC and/or its assigns as additional insure
- Lender’s title insurance
What Lead Funding does NOT do:
- Lend to owner occupiers
- Loans secured by non-real (personal) property
- Unsecured Loans
Fix and Flip
Example
Fix and Flip Single Family Home in Denver, Colorado
Description: Investor needed financing to acquire and remodel distressed single-family residence in Conifer, Colorado, a mountain community outside of Metro Denver.
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Total Loan Amount: $244,000
Remodel Budget: $44,000
Actual Sale Price: $321,500
Investor Profit: $61,000
Construction Time: 7 weeks
Date of loan Issuance: 2/28/15
Payoff Date: 6/27/15
New Construction
Example
New Construction Financing
Description: Experienced investor needed financing for a new semi-custom 3000’ home he was building within an established Master Plan Community in Aurora, Colorado.
- Loan Amount: $320,000
Expected Sale Price: $600,000
Expected Construction Term: 6 months
Expected profit: $75,000
Loan Term 1 year
Other: Builder requires a draw schedule to disperse funds as project progresses. Lead Funding staff will perform periodic site visits and provide guidance and finish suggestions as project evolves towards completion.
Collateral: Builder paid for the lot in cash and financed the construction with Lead Funding. The loan is expected to payoff within 9 months.
Refinancing Existing Loans
Example
Refinance and Additional Construction Financing needed to complete large fix and flip remodel
Description: Investor needed to refinance an existing loan as well as needed additional capital to complete the remodel. The project is an existing 50-year residential property within a desirable area of central Phoenix. The investor’s plan was to “pop the top” and double the size of the existing home including adding a pool and remodeling all of the interior space. The completed home would be 4000’ on nearly 1 acre.
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Loan Amount: $450,000
Expected Sale Price: $1,000,000Expected Construction Time: 7 months
Loan Term: 1 year
Other: Lead Funding staff provided vendor referrals to help investor obtain discounted granite countertops and cabinets. In addition, LF staff provided design suggestions to open up living space and kitchen. The project was recently completed and sold at $200,000 above investor’s original resale price.
Acquisition Funding
Example 1
Acquisition Funding needed to acquire distressed Duplex
Description: Investor needed financing to acquire a small duplex in Denver that was empty and required light remodeling. The investor’s plan was to get the duplex in “rent ready” condition and stabilize the building with new tenants.
- Loan Amount: $100,000
Expected Construction Time and Lease Up: 30-90 days
Loan Term: 1 year
Other: Investor’s plan is to seek permanent financing once the duplex has been leased and stabilized as well as manage the property for long term capital appreciation and rental income.
Example 2
Acquisition Funding needed to acquire large and occupied 150+ unit Multi-Family apartment building in Phoenix, Arizona.
Description: Investor needed bridge financing to acquire a large multi-family apartment in suburb of Phoenix, Arizona. The investor was having difficulty in obtaining traditional financing from a bank and needed capital to acquire the property. The investor’s plan was to refinance the building once he had ownership including improving the apartments with light remodeling as units turned over as well as increasing rents when leases renewed.
- Loan Amount: $1,500,000
Term: 1 year
Other: Investor successfully obtained permanent financing from a traditional bank. Investor plans to keep the profitable income property within its portfolio for long term capital appreciation and rental income.
Example 3
Acquisition Funding needed to acquire Single Family residences as part of a Rental Pool of investment Income Properties
Description: Investor needed financing to acquire multiple single family residences within Anthem, Arizona, a suburb approximately 30 miles from downtown Phoenix, in order to create a self-managed rental property portfolio. The investor’s plan is to purchase newer built homes and rent them until the market turned around. The investor’s strategy is “buy down the loans” so each property would be cash flow positive so that rents collected would be sufficient to cover all interest payments owed on the loans to Lead Funding. Finally, the investor plans to sell and realize gains within 3-5 years from each acquisition by either selling the homes to existing tenants or marketing each property through his brokerage.
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Each Loan Amount Varied: $100,000-$550,000. Average loan size: $155,000
Investor’s Total Loans to Lead Funding: $2,000,000
Loan Terms: 2-3 years based upon subject property
Other: Investor has obtained more than 30 loans from Lead Funding and has paid back more than 20 of the original loans. Today, Investor has 15 current loans with Lead Funding totaling $1,850,000.
