Rental Home Financing
In these difficult economic times, we find ourselves with quite a financial dilemma. We are Renting homes; however, banks are not lending money for Rental Home Construction.
In order to meet the demands of the market for Rental housing, we are turning to private financing by individuals who are seeking a secured investment, with a return at an amount greater than they are experiencing in the traditional investment world.
Our Rental Home Construction Financing Program is set up as follows;
A) The Borrower is an entity owned by Eastwood Custom Homes, Inc.
B) The Borrower will order, pay for and provide an appraisal for each home.
C) The Borrower will order, pay for and provide a Title Insurance Policy insuring the Lenders First Mortgage position for each home.
D) The Borrower will provide the Title Company and Lender with Waivers and Sworn Statements for each Draw.
E) All Draws will be based on 80% of the work competed.
F) Term will be 24 months for Rental homes.
G) The Lender holds the first (and only) secured mortgage position on the land and home.
H) Our current interest rate offering is 6%.
I) The Lender will advance to Borrower 80% of the Appraised Value.
J) The Lender is paid in full at the End Mortgage placement or closing of the sale.
Current Financing Needs in our order of priority;
1. Rental Home – Grand Traverse County, MI.
Appraised Value $139,900.00
Loan Ratio 80%
1st Mortgage Loan $111,920.00
Net to Eastwood $111,920.00
This 1208 square foot, 3 bedroom, 2 bath, Energy Star rated, Green, Super Insulated home with a 30’x32’ 2 car garage, paved drive and air conditioning, cathedral ceilings, and Energy Star rated appliances is ready to start construction. This home will be very comfortable, it will have very low utility bills and will rent for $1,100.00 per month.
Loan repayment is expected to be on or about 24 months after final draw.
The total Mortgage amount for the home listed above is $111,920.00
The total Net funds disbursed for the home listed above is $111,920.00
We will build these homes in groups of 6.
The Lender may choose to do all of the loans or any single loan.
INVESTMENT OPPORTUNITIES: