Real Estate Investment Financing

Fix and Flip Purchase + Rehab Financing

  • Type of Financing: Purchase, Refinance, Refinance/ Cash-Out
  • After-Repair-Value (ARV): up to 75%*
  • Closing: Quick as 7 days
  • Property Types: 1-4 Family Unit Residential Real Estate, Condos, Townhomes, Multi family (5+ units), & Mixed-Use Properties
  • Loan-To-Value on Rehabilitation Funds: up to 100%*
  • Loan-To-Value on Purchase: up to 80%*
  • Loan Term: 12-24 months interest only payments (extensions available)
  • Minimum Loan Amount: $75,000
  • No Experience Needed*


*Level of experience will determine approved Max LTV, Max LTC, Max LTV (ARV), interest rate, term length, rehab budget, & approval. 

Rental Property Financing

 

Are you building a spec home? Do you own lots but don’t have the funds to go vertical? We are looking to work with builders that own their land/lots free and clear. If you have a lot or subdivision and need money to go vertical, we want to see your loan request.

With construction spending in the United States rising to its highest level in nearly 5 years there is a higher demand for new homes, which in turn leads to builders looking for quicker, more reliable funding than traditional bank lending. We aim to fill the gap left by banks in this area! 

We are now funding ground up construction loans in 41 states and Washington DC.

Rental Property Financing

 

  • 1 Year- 30 Year terms available
  • Closing times in as little as 20 days, and loan amounts from 75k and up and a 30 year fixed rate makes this program ideal for investors.
  • Rehab to Rental – use our ARV loan product and then roll your loan into this program as a long term hold
    Purchase money up to 75% of purchase for turnkey properties that you want to hold long term
  • Closing times in as little as 20 days, and loan amounts from 75k and up and a 30 year fixed rate makes this program ideal for investors.
  • Cash out on investment properties up to 75% and hold the property long term fix and flip hard money real estate investing

BORROWER REQUIREMENTS

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Borrower Types:

Either (i) one or more U.S. Citizens who are natural persons or (ii) a legal entity domiciled in the United States, including LLC’s, LP’s, Trusts, and Corporations. Ariso Business Capital only makes loans to individuals on a strict exception basis. Every loan to a legal entity must have at least one guarantor. Each individual (natural person), with an interest of >20% or control in the legal entity, must submit a full application package and will be required to guarantee the loan. The originator must confirm that the principle who is executing the loan documents has signature authority to bind the borrower to the loan agreement.

Borrower Income (Personal Tax Returns)

Personal Tax Returns are only required for the 30 Year Product. They are not collected for all of Ariso Business Capital’s short-term loans, unless specifically requested by the Underwriting Department.

Ariso Business Capital requires two years most recent Personal Tax Returns for the 30 Year Product. Borrower(s) will need to complete a 4506T and Tax Return Transcripts (TRV’s) are obtained if the Loan Amount is >$500,000. Business Tax Returns are NOT required. Ariso Business Capital only collects Schedule K1’s for S Corporations to verify ownership. Tax Return Extensions are collected if borrower has not filed their Tax Return during the specified period.

Borrower Liquidity (Bank Statements)

Ariso Business Capital requires 2 months most-recent bank statements to ensure borrowers have enough liquidity to cover their contribution and service the debt. It is PREFERRED that funds are in a liquid checking or savings account. Ending account balances need to be dated within 45 days of the loan origination date.


Acceptable Proof of Funds:

• Personal Checking/Savings/Money Market Accounts.

• Business Checking/Savings/Money Market Accounts.

• Retirement Accounts (401K, IRA, ETC). These are only counted at 50% of value.

• Investment Accounts (Stocks, Bonds, Annuities, ETC). These are only counted at 50% of value.

• Cash Value of Life Insurance or Annuity Policy.

• Copy of EMD Check.


The amount borrower will need to close their deal (GFE) is determined as follows:

Down Payment

Origination Fee

3 Months of Debt Service

+ Initial Rehab (See table below)

___________________________

=Total Funds to Close


Since Construction Draws are funded via reimbursement; it is important to make sure that the borrower has enough funds to not only close the deal but start the renovations in a timely manner. The borrower must also show enough liquidity to cover any rehab costs NOT covered by the Construction Holdback. For example, either the loan is Purchase-Only with the borrower covering the rehab portion out of pocket. Or the Construction Holdback does not cover 100% of the Rehab Budget.


If the loan is a Refinance, the Down Payment becomes the Payoff Amount – Initial Advance/Loan Amount. If the loan is a straight Cash-Out, the borrower should be able to show enough liquidity to cover at least 3 months of debt service. Closing costs can be covered via loan proceeds.

Below is a table to calculate the Initial Rehab amount:


Total Rehab Budget Requested:      Initial Amount Required in Proof of Funds

$0-$5,000                                               100%

$5,000-$15,000                                       50%

$15,000- $25,000                                    30%

$25,000-$40,000                                     25%

$40,000-$60,000                                     20%

$60,000-$100,000                                   15%

$100,000+                                               10%

Borrower Track Record / Experience

Ariso Business Capital offers competitive terms based on borrower experience. Borrowers should include a current REO Schedule and a list of previous investment real estate projects with their application. Previous investment real estate projects can also be verified via copies of HUD’s, borrower’s Schedule E, etc. The following information is required to confirm experience:

• Complete Property Address.

• Name on title.

• Date Purchased.

• Rehab Amount Spent (if any).

• Date Sold (if fix & flip)

• Monthly Rental Income (if rental)


Experience as defined by Ariso Business Capital = At least one guarantor has at least 3 documented real estate investment property sales, completed rehab on rental properties or equivalent experience in the past three years and at least one year in the business of acquiring real estate for investment purposes or renovating real estate.


Additional Notes:

• PERSONAL RESIDENCES DO NOT COUNT AS INVESTMENT REAL ESTATE EXPERIENCE.

Borrower Entity Types

Limited Liability Company (LLC)


Required Documentation:

1. Articles (or Certificate) of Organization

2. Operating Agreement

3. Entity Status (from state website)

4. EIN Assignment Letter.


Additional Notes:

• Any Member of the LLC that hold 20% or more Membership Interest in the company must be included on the loan as a personal guarantor.

• If there are multiple members, a Membership Interest Exhibit is required to show each member and their corresponding Membership Interest in the LLC.

• If another LLC or Corporation holds 20% or more Membership Interest in the LLC, full documentation for that entity is required. It is not uncommon for an LLC to be owned by other LLC’s and/or Corporations.

• In lieu of an EIN Assignment Letter from the IRS, a W9 Form or a Confirmation Notice that the EIN Number has been assigned is also accepted.

Corporation (INC)


Required Documentation:

1. Articles (or Certificate) of Incorporation

2. Bylaws

3. Entity Status (from state website)

4. EIN Assignment Letter

5. Stock Certificate(s) OR Schedule K-1’s


Additional Notes:

• Any Shareholder of the Corporation that holds 20% or more of the corporation’s shares must be included on the loan as a personal guarantor.

• If another LLC or Corporation owns 20% or more of the corporation’s shares, full documentation for that entity is required. This is uncommon and only a C Corporation can be owned by other entities.

• Bylaws do NOT have to be signed by the shareholder(s), while the Operating Agreement MUST be signed by all members.

• In lieu of an EIN Assignment Letter from the IRS, a W9 Form or a Confirmation Notice that the EIN Number has been assigned is also accepted.

• In order to verify ownership, Stock Certificates are required for C Corporations and K1’s are required for S Corporations. Stock Certificates are only required for S Corporations if the entity is newly incorporated and has not yet filed taxes.

Collateral Requirements

Market Requirements:

All properties must be located in the United States. Ariso Business Capital seeks to acquire loans collateralized by properties located in areas with demonstrated real estate market liquidity and stable/improving housing market conditions. Properties which are located in markets with poor liquidity and/or materially declining home prices are subject to lower LTV limitations or are not permitted. 


Properties located in sparsely populated rural locations are not permitted.

Property Types


Eligible property types include the following:

• Single-family Detached Residences.

• 2 – 4 Unit Residences.

• Condominiums.

• Townhouses.

• Multi-Family Apartment Buildings which are Class A or Class B. Class C multifamily buildings require prior investor approval.

• Mixed Use Buildings (Residential space is more than 50% of the property square footage) which are Class A or B. Class C requires prior investor approval.

The following property types are NOT eligible for financing:

• Mobile Homes.

• Cooperatives.

• Raw land, working farms or ranches.

• Properties subject to purchase options.

• Single family condos of less than 500 feet, 2-4 unit, multifamily or mixed-use residences of less than 500 square feet on average for each residential living unit and SFR or townhouses of less than 700 square feet.

• Properties which are not in compliance with local zoning regulations.

• Properties with known adverse environmental conditions (other than lead paint, radon or asbestos).

• Properties with underground oil tanks.

• Multifamily and mixed-use properties classified as Class D