100% REHAB FUNDING /Option Buy Back

Submission Requirements and Procedures

The below minimumdocumentation is required to obtain a free pre-approval.

  • Appraisal and/or BPO( At rehabbers Cost)
  • Rehabbers purchase contract showing CONTROL of the property
  • Licensed Contractors Itemized Labor and Materials Estimate
  • Completed Option Buy Back Worksheet ( see attached)

NOTE: One of the main underwriting concerns is the relationship between the total repair costs, and, the current AS IS value of the subject property. We never commit more than 20% of the AS IS VALUE of the subject property towards repair costs.We do not purchase properties in need of full “gut-jobs”, tear downs, or the construction of additional rooms or floors.

Once the package is submitted to us, allow 5-7 business days,max, for approval.

Once approval is granted, we will respond with the Option Agreement, and ,our own Purchase Contract and earnest money, with POF, to buy the property.

The Option Agreement requires the rehabber topurchase the Option Consideration Rights for a flat fee of 5% of the total funds we invest in the Property. This consideration is due and payable upon presentation of the Option Agreement . The Option gives the rehabber the exclusive right to supervise the rehab ( with our funds), and, market the property for up to 12 months.

Any costs incurred to properly market the property are the rehabbers responsibility.

During the Option Period, the rehabber will also remit a monthlyOption Renewal Fee equal to 1.0% of the total capitalthat we have invested in the deal.So, if we have $100 K invested, (purchase price, closing costs, repairs) then,the monthly Option Renewal Fee will be $1,500 per month.

Finally, at resale, after normal closing costs and commissions are deducted, the remaining net profit is split, with 80% to the rehabber, and 20%to us.

If you are ready to proceed, attached is the Option Buy Back Worksheet. Please fully complete and return to us. We will give our feedback asap and move the process forward.

Thanks in advance for your cooperation and we look forward to working with you.

OPTION BUY BACK WORKSHEET

Please review, fully complete and sign the below worksheet. Email to:

A representative will contact you within 24 hours.

CLIENT INFORMATION

I. Client Name:

Client Street Address, City, State, and Zip:

Phone: Email: Fax:

II. How many similar properties have you bought, rehabbed and resold in the past 24 months? ______

What is the address of the last property you successfully bought and resold? :

Date of Purchase: Purchase Price: $ Amount Spent on Repairs: $

Date of Resale: Resale Price: $ Final NET profit after closing costs: $

III. Please use the space below to describe the successful strategy you used to “flip” this property:

SUBJECT PROPERTY INFORMATION

I. Property Current As-Is Market Value: $ Date of last Valuation or Appraisal:

Property Description (SFR, Duplex, Condo, Apartment, Industrial, etc.):

Property Full Address (Street, City, State, and Zip):

Property Size, Sq. Ft. : What are the total liens, and mortgages owed? : $

II. Does the property need repairs? Yes__ No ___

Est. Amount of Repairs Needed: $

Briefly describe repairs needed:

Estimated Full Market Value AFTER Repairs: $

III. Do you currently already have the property under Contract? ___ Yes ___ No

By what means? (Purchase Contract, Option, etc.): When does your contract expire? ______

FUNDING REQUEST

I. Cash Needed to Buy the Subject Property, AS-IS, with Closing Costs: $

Cash Needed to Escrow for Repairs: $

TOTAL CASH NEEDED: $______

II.Estimated Time needed after closing to complete all repairs: _____ Weeks ____Months

Estimated Time needed after closing to Sell the property: _____ Weeks ____ Months

Estimated retail selling price: $

ADDITIONAL INFORMATION

Please tell us why we should buy this property, and why we should grant you the exclusive Option to resell

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I have read the above Option Buy Back summary form and understand and agree with the general guidelines, procedures, and conditions, and I am under no obligation to proceed until further notice. I understand that THE LPM TRUST, and/or assigns, is reviewing this information strictly to determine if it meets our investment requirements, and, to determine if we will grant the applicant an exclusive Option to Purchase, for our mutual gain.

I understand that, if I elect to proceed, that I am willing to fully cooperate as instructed by The LPM TRUST in order to achieve the investment results that are satisfactory to all parties in the transaction. I understand that this confidential information is submitted only for review and pre-approval purposes only, and, is not to be shared with any unauthorized 3rd party.

______Client Signature:

______Print Name

______Telephone

______Email

______Date

Option Buy Back Submission Worksheet