FAQ’s

Good rule of thumb is 20% of the purchase price plus 6 months of mortgage payments for the subject property to include principal, interest, taxes, insurance, and HOA.

They look for equity capture, which is when you buy an asset for less than it’s worth. Also, net month profit is a factor which is the after-tax profits and mortgage cost are subtracted.

The Loan-to-Value (LTV) Ratio is the ratio of the mortgage lien as a percentage to the total appraised value of the property. The mortgage lien is the security from the lender to support the loan for the purchase of real estate, and the appraised value is an evaluation of an investment property’s value based on comparable sales and the property as an entity.

It is the value of the property subject to all the disclosed repairs being done. This value is the “fixed-up” value and typically includes the investment properties cosmetic work and repairs.

A Hard Money loan is a short term financing loan tool used to leverage your out of pocket in an investment property transaction. This type of loan allows you to purchase, rehab, and either flip for a profit or hold the property for rental income.

The typical credit score for a Hard Money is 650, however there are some exceptions if you plan to “Flip” or resale the property.

At Capital Concepts we start the process within a week from closing on your Hard Money loan. While you are rehabbing the property we will submit your loan information for the permanent Conventional financing so that you have the rehab complete and the house rented if needed, we can close on the loan.

A short sale is an agreement with the current lien holder of the property to allow you as the owner of the home to sell the home for less than what is owed. A foreclosure is when a bank that is the holder of the lien against a property takes the home back from the current owner for failure to make payments.

This is subjective, you can manage your rental properties yourself or you can pay a management company either a flat fee or percentage of the monthly collected rent to manage it for you.

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