FAQs

[vc_section][vc_row][vc_column][mk_fancy_title size=”35″ font_family=”none” align=”center”]Avinu Capital[/mk_fancy_title][vc_toggle title=”Can I use my free and clear property to do more investing?”]Yes. It may be used as cross-collateral or used for a cash-out refinance. That is a great strategy! If you have properties that are completely paid for with no liens against them, we can do a cash-out refinance to provide funds for other investing. You can also use them as cross-collateral for your real estate investing. We use both your subject property and your free and clear property as security for the loan. In doing that we can lend up to 65% of the as-is combined value of the two properties. That is often enough to purchase your subject property and rehab it. If you have free and clear properties, mention that on your next deal![/vc_toggle][vc_toggle title=”How do you decide the amount to lend?”]It is based on the property, the type of transaction and your membership in any of our special programs.For most transactions we will lend up to 80% of the purchase price or 65% of the as-is, or after-repair, appraised value, whichever is less. Ask a loan officer about the special terms available through our membership programs and special purpose loans.[/vc_toggle][vc_toggle title=”I need 100% financing. Can you do that?”]Yes. Ask a loan officer for more details. If you provide more than one property as security, as described above in regard to cross-collateral, we can indeed provide 100% financing. If you don’t have free and clear property, find a partner that does! Sharing half of a nice profit beats not being able to do the deal! Many of our investors also use seller-carryback to do the same thing. We recommend finding deals and purchasing property below appraised value as the best way to secure 100% financing.[/vc_toggle][vc_toggle title=”Where can I find a good deal?”]Look for people that have a need to sell and get to them before your competitors do The simple answer is wherever you have little competition. The harder they are to find, the less competition you will have and the better your chances for a good price. It requires work, but it is work that can end in a deal with profit, as opposed to work that spins wheels but never gets a profitable deal. For instance, talk to probate attorneys or divorce attorneys, find ugly houses, contact out-of-state owners, etc. Be creative![/vc_toggle][vc_toggle title=”Will you lend for both the purchase and the repairs?”]Yes, for the right deals. If the numbers work and we expect you to be able to make a profit, we will loan on ARV. We recommend you have solid experience doing or managing such repair work. You will need to supply licensed contractor bids, as well as meet certain other requirements. Bring us the deal and let’s discuss it.[/vc_toggle][vc_toggle title=”How can I do deals in my IRA?”]By using a true self-directed IRA, making all legal payments from it and depositing all complying profits into it. You should seek legal and financial advice first. You must have a true self-directed IRA. There are many IRA administrators that offer such accounts. Then you buy the property in the name of the IRA, furnish the earnest money from the IRA, apply for the loan in the name of the IRA, pay all costs from the IRA, and put all the profit back into the IRA. This is a topic that requires much more detail than we have room for here. Please contact your legal or financial advisor for the details. Also search online for self-directed IRA custodians to learn more about your options.[/vc_toggle][vc_toggle title=”I want to borrow money based on the After Repair Value (ARV) of the investment property I’m purchasing or own. Is this something you allow?”]Yes! We love flippers! If the deal makes sense, we will help you get it done. Speak to a loan officer for more details.[/vc_toggle][vc_toggle title=”Why do I need to buy an appraisal when I have a CMA or existing appraisal?”]Avinu Capital requires a recent (less than 90 days), independent, standards-based, 3rd-party, as-is evaluation of every property used as security. BPOs, CMAs or outside appraisals do not generally satisfy all those requirements. If you have a recent as-is appraisal, you can pay for one of our appraisers to do a desk review instead. Your best bet: Go with ours. They are performed by local appraisers in your market, working at competitive rates…and doing the appraisal the way we need it to be done. The appraisal report will come to us and you will receive a copy.[/vc_toggle][vc_toggle title=”What are your rates and loan origination fees?”]Our loans are asset-based and our decisions are logic based. That means we base our decisions about funding and rates on the perceived risk associated with the property. If you have a property under contract, submit it. Our rates are competitive in the private money market but we save our best rates for our best clients. Get started today to become one of those repeat, best clients! Get a property under contract and submit it![/vc_toggle][vc_toggle title=”Why won’t you lend on owner occupied properties?”]Legal and regulatory reasons. Our current business model is to provide bridge loans to real estate investors for terms ranging from 3-24 months. Almost no homeowners need such a short loan. As a result, it is not cost-effective for us to implement the complex and restrictive processes and rules required by regulatory agencies to do business with owner-occupants.[/vc_toggle][vc_toggle title=”Is credit the deciding factor in Avinu Capital’s decision?”]No. Our loans are asset-based. We base our loans on the value of the asset, not on your credit score, income, or the size of your debts. However, your good credit score can potentially get you our best rates.[/vc_toggle][vc_toggle title=”How long does it take to close a transaction start to finish?”]Three to four days after we receive all required documentation, which can often take 3-4 weeks. Though we can do it faster, a good estimate would be 3-4 weeks after we receive the basic application package. The key factor is the amount of time it takes you and your team to supply all the supporting documentation. We can do our part in 3-4 days, but first-time borrowers rarely get us the documents quickly enough and complete enough to meet that. Go for 30 days or more whenever you can. Remember: If time to close is a factor, you probably have competition. Competition does not usually translate into a good deal. Forget such a deal and go find a good one! (Admittedly, sometimes other factors dictate closing time. If that’s the case, bring us the deal and let’s discuss it!)[/vc_toggle][vc_toggle title=”How much does the appraisal cost?”]They are done by local appraisers charging the going rate for your market. This could vary between $300-$600. Rates are determined by the going rates for appraisals in your market. The appraisal price is also going to depend on the property type and location. A typical single family residence, condo, townhouse or manufactured home may cost between $395-$575. Multi-family units may cost between $550-$645. If the property is in a rural area, it may cost more because of added drive time or appraiser availability.[/vc_toggle][vc_toggle title=”I’m a sole proprietor. Can I still get a loan?”]Yes, if you create an LLC, a corporation, an IRA, or a trust before the close of escrow.[/vc_toggle][vc_toggle title=”I am seeing a lot of good deals on auction sites and at live auctions. How can I procure funds to have cashier’s checks ready to pay for the property at the auction?”]Our funding is solely based on properties you already control via ownership or contract. We cannot provide cash in advance for auctions that require immediate payment. Since all loans are asset-based, we must have a lien as security on property you own. The primary ways to do what you ask are for you to have another property that is free and clear and you take out a loan against it. Alternatively, you can find a professional auction bidder who will supply the bidding presence and the purchase cash in exchange for a fee (often $5-10 thousand or a percentage) with the rest of the funds paid later at close of escrow.[/vc_toggle][vc_toggle title=”I attended a seminar this weekend sponsored by another company. They described terms and conditions I liked, but your website does not include that. Please help me with this confusion.”]We are aware that has happened on occasion. We work closely with other companies to assure accurate descriptions, but misunderstandings sometimes occur. That is possible. We sometimes see that others who are not a part of our company sometimes describe a specific detail that is inconsistent with our lending guidelines. As one of the nation’s most reliable lenders that can be counted on to have the funds to do their students’ deals, many real estate investment gurus have chosen us as their preferred lending source. After we train their trainers, they train someone else, who trains someone else. It is not surprising that slight discrepancies may creep in, even with the best intentions. Chances are pretty good they got most of it right. Please ask them to contact us, or provide us their name so we can clarify the details they share with future students.[/vc_toggle][/vc_column][/vc_row][/vc_section]

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