We are looking for general business experience and a tri-merged credit score of 700. It helps if you also have real estate experience, especially in fixing and flipping houses. You need to have approximately $25,000 of cash or immediately available credit for your project's out-of-pocket expenses.
Register as a Customer
If this is the first time you have done business with us, you will need to authorize a background check and individual credit report. A $100 Registration Fee is charged. This allows us to prequalify you and to set you up as a customer in our system. Begin this process today on our "LOANS" page to get one step closer to obtaining the financing you need.
Submit a Financing Request (this step is optional)
When you identify a house (but before you have the house under contract), go to the "LOANS" page of our web site and submit your request for financing by completing the online form. Feel free to call us at this point in the process at 405-418-5800. Otherwise, we will call you (usually within 24 hours). With the information you have given us and payment of the $50 Financing Request Fee, we will give you an INDICATION of whether we will be able to make the loan (not a loan commitment). This indication will give you a feel for how much cash you will need to bring to closing, and it is an important step for you to decide whether you want to proceed.
Get a House Under Contract
Sellers always want a quick closing date, especially when they are selling the house at a discount; however, always allow plenty of lead time for you to fully evaluate your deal. Analyzing the repairs and getting quotes from contractors can be especially time consuming, but is often the most critical component of the deal. When making your offer, please also consider how long it will take for the Seller(s) to sign the contract and return the signed contract to you. As soon as you get the house under contract, you should submit the project to us for evaluation. WE REQUIRE THREE (3) FULL WEEKS from the receipt of your request until closing. More time is better.
Order a Property Valuation
After you enter into a contract to purchase a house, it is necessary for us to perform a Property Valuation to make sure that the project makes financial sense for you and for us. There is a $750 fee for this service (which also includes the cost of an appraisal by a licensed appraiser). We advise you to put a contingencies in your contract in case you later discover that the repairs will cost more, or, if the property fails to appraise for the expected ARV. Usually within five business days, we will complete our evaluation. If time is of the essence, this process might be shortened depending on our workload.
Financing Decision is Made
After we finish the Property Valuation and evaluate your financing needs, we can give you a preliminary commitment. We will be in contact with you during this time period to discuss the deal. Importantly, we will discuss the repair budget and other unique aspects of the transaction. As soon as we get a copy of the purchase contract and your written repair budget, we can order the appraisal. Generally, it takes two weeks for the appraisal to be completed. Assuming that the appraisal validates the After Repaired Value ("ARV") then the financing decision is made.
Proceed to Closing
After we receive the title comittment, we will review it to ensure that the title is clear. The next step is for you to obtain property insurance, which must name RMAC Lending LLC as the "mortgagee". RMAC Lending requires that the policy be issued (and PAID) for one (1) full year and that the premium be collected on the HUD-1 and paid by the title company to your insurance agent. DO NOT ARRANGE TO PAY FOR THE PROPERTY INSURANCE IN MONTHLY INSTALLMENTS OR DIFFERENTLY AS STATED HEREIN. Just prior to closing, the title company provides a HUD-1 for our review and approval, after which we can give our "clear to close" and proceed to closing and funding of your transaction.
Rehab the Property
You must hit the ground running and rehab the property according to the repair budget. Request draws from us via email, and we advance funds as the progress continues until your loan is fully advanced. There is a minimum of $10,000 per repair draw (although the final draw may be less). We often visit your property multiple times during the rehab. We charge a minimum of $250 in repair draw fees (2 x $125) and these are paid upon the sale or refinance of the property.
Market and sell the property; or, if you plan on keeping the property as a rental, refinance into a permanent loan. Time is of the essence.
Rapid Money Access Connection