Dax Dickson

I have heard many real estate agents say that the only way to close on condemned houses is cash.

This is not true!

There is a GREAT residential REHAB loan:

This is how it works:

- 80% LTV of the purchase plus construction costs
- 620 Minimum FICO
- 50% DTI

It is that easy!

Dax Dickson

612-578-9898

Closing Creative Commercial Mortgage Loans in Minnesota!!!!!!!!!!!!

Learn more about Bank Owned investing

Learn more about commercial mortgage loan programs available in the Minneapolis & St Paul, MN Metro area that can help those looking to secure purchase rehab mortgage loans for properties that do not qualify for programs like private/hard money loans or the FHA 203K rehab mortgage loan.

WOW!

This market is awesome!

I really think the Minneapolis & St Paul, MN REO Rehab property market is better for real estate and finance professionals than the refinance and housing boom. Things are getting so busy I have had to solicit new banks because the ones I have been doing all of my Purchase Rehab Rent (PRR) and Purchase Rehab Sale (PRS) mortgages with can not handle the volume.

It would be great to hear the success stories of others out there investing, selling real estate or in the mortgage finance business.

Dax Dickson
612-578-9898

Learn more about commercial mortgage loan programs available in the Minneapolis & St Paul, MN Metro area that can help those looking to secure purchase rehab mortgage loans for properties that do not qualify for programs like private/hard money loans or the FHA 203K rehab mortgage loan.

LIST OF ITEMS REQUIRED TO UNDERWRITE A

REHAB LOAN

Required Documentation:

1. A PERSONAL FINANCIAL STATEMENT (PFS) FOR EACH PARTNER with an interest of 20% or more.

2. BANK STATEMENTS and ASSET STATEMENTS for any and all accounts listed on the PFS

3. LAST 3 YEARS’ TAX RETURNS (business & personal) for each partner with an interest of 20% or more in the project.

4. COPY OF FULLY EXECUTED PUPRCHASE CONTRACT.

5. SWORN CONSTRUCTION STATEMENT including hard and soft costs.

6. BACKGROUND/BIO ON EACH PARTNER emphasizing development/construction/renovation/real estate experience and past projects successfully completed.

7. PERMISSION TO RUN CREDIT REPORT(S): (FOR EACH PARTNER WITH AN INTEREST OF 20% OR MORE).

General Loan Requirements:

1. Minimum 660 FICO score

2. If rental, minimum 1.25 Debt Service Coverage Ratio (DSCR)

3. If using DTI, maximum of 45%

   • Can blend with global calculation

4. If DTI and DSCR do not work we can use marketing plan and pledge payment reserves to bank

5. Six months reserves

6. Purchase plus construction = X, Loan amount = 80% of X

*** The documents listed above are the documents we require to evaluate the borrower and issue a pre-approval. Every deal is different so the bank may require some additional documentation or clarification. ***

Dax Dickson

4517 Minnetonka Blvd, #306 │ St. Louis Park │MN 55416

612-578-9898

Learn more about commercial mortgage loan programs available in the Minneapolis & St Paul, MN Metro area that can help those looking to secure purchase rehab mortgage loans for properties that do not qualify for programs like private/hard money loans or the FHA 203K rehab mortgage loan.

FHA 203K Mortgage is not always the best answer!

I often get asked about the FHA 203K mortgage. For the few that qualify for the FHA 203K Rehab Mortgage Loan I send them to Matt Bartlett of Summit Mortgage.

Our team has great solutions for investors and people who do not meet the FHA guidelines.

Recently, I have been working with more and more investors that have tried to buy "Fixer Uppers" and just haven't had luck finding the mortgage finance to take advantage of the great deals available.

I wish I could get our information out to everyone who needs help. We have the Purchase Rehab Sell mortgage solution, the Purchase Rehab Rent mortgage solution and can help facilitate investors to convert their IRA, 401K and other retirement investments into a Self Directed IRA they can use to invest in real estate.

If you, a client or investor you know needs help please feel free to contact our team about all of the mortgage and finance options available.

Dax Dickson
612-578-9898

Learn more about commercial mortgage loan programs available in the Minneapolis & St Paul, MN Metro area that can help those looking to secure purchase rehab mortgage loans for properties that do not qualify for programs like private/hard money loans or the FHA 203K rehab mortgage loan.

Serving clients in Minneapolis / St Paul, MN and the surrounding Metro area!!!

Recently, I have received a ton of calls from potential borrowers looking for Hard Money or Private Money to rehab bank owned properties. I have noticed two types of callers.

One, the borrower that actually qualifies for bank financing and had been told by their agent or some other non-finance specialist they needed Hard Money or cash to do these projects. These people are almost always pleasantly surprised to find out we can get them bank mortgage and they do not need to pay high fees and interest a private lender would charge.

Two, the potential borrower that has no credit, no solid income and no money to put into the project. This conversation usually starts like this "The property I want to buy last sold for $285,000 and I can get it for $125,000. It only needs about $50,000 in rehab so if your lender gives me a $175,000 it is a great deal for the lender and me. I am willing to pay him 15-20% when I sell the property." Once I inform them that they will need at least 20% into the project and the value we look at in using hard money is the purchase price + the construction rehab costs = X and X is the new true value in this market when applying for finance. These potential borrowers usually end the call and I am sure call another finance person that will tell them what they want to hear in the hopes of getting a loan. Then move on to the listing agents to waste their time. I say Good Luck!

It is a common misconception that if a property is not eligible for Fannie Mae or Freddie Mac mortgage finance that cash or Hard Money is the only option. This is absolutely wrong. If a borrower can either put 20% and sometimes more into the project they may be able to get a Hard / Private mortgage or the borrower has an adequate down payment and income to support the debt it is very likely I can get this borrower a bank rehab / construction mortgage.

Another misconception is that Hard Money is strictly based on the as completed value of the property. This does play a huge part to qualifying for a hard money loan but the lender will not put all of the financial risk on their shoulders. Purchase / Rehab Hard Money requires "Skin" in the game. The borrower has to have some money in to make the lender feel the borrower is committed. This might mean a 20% to 30% down payment. The only time a borrower can finance 100% of a Hard Money transaction is in a refinance and there is proven equity in the property.

I hope this little rant helps some of the confused potential borrowers out there and if you have additional questions feel free to contact me.

Dax Dickson
612-578-9898

Learn more about commercial mortgage loan programs available in the Minneapolis & St Paul, MN Metro area that can help those looking to secure purchase rehab mortgage loans for properties that do not qualify for programs like private/hard money loans or the FHA 203K rehab mortgage loan.