Building Your Vision

1. Our Builder Affiliate signs a contract with a creditworthy buyer (who is already approved for an ‘end loan’)* to provide a home for a management fee of 10% of the cost of the project.

2. Investor funds 70% of the project cost **

3. Investor is paid 50% of the Management fee when the buyer closes with their loan (typically about 90-120 days after Investor funds project)

This short term capital to build homes is essentially bridge funding between the borrower’s loan approval and the finished home.

The high fees that are typically associated with a construction loan are paid to the Investor instead of a bank. However, the risk to the Investor is minimal since they are funding only a portion of the cost of construction to the builder (Our Affiliate), unlike in a construction loan.

* We use the term ‘end loan’ for any permanent loan facility (conventional, FHA, VA etc) used to purchase an existing home.

** ‘Project cost’ may include land purchase, as well as the home + installation.

EXAMPLE # 1

Project Cost $160,000

Includes Land (40,000) + Home (90,000) + Home Installation (30.000)

LESS Buyer Down Payment (20,000)

Balance 140,000

Management fee (10% of balance) 14,000

Investor capital (70% of balance = 61% LTV) 98,000

Affiliate Builder capital (30% of balance) 42,000

Net to Investor at Buyer’s loan closing in

approximately 90 - 120 days

(50% of Management fee) $7,000

EXAMPLE #2

Project Cost(See VA loan pre approval here 267,000

Less Buyer down payment (1,000)

Management fee(@10%) 26,000

Investor capital (@70% = 63% LTV) 187,000

Affiliate Builder capital (@30%) 80,000

Net to Investor at loan closing in

approximately 90 - 120 days

(50% of Management fee) $13,350