Take advantage of our industry-leading 9-month loan product for professional real estate rehabbers, allowing you to purchase and renovate short-term investment property with as little as ZERO out-of-pocket expense. This product features NO PAYMENTS until your rehab-and-flip project is SOLD! Rehab money is released on a draw schedule as work is completed, with up to 10% of rehab funds being made available to you at purchase. As little as $0 due prior to your loan payoff.
Get a Special interest rate of "Prime +2" when you put down at least 10% upfront.
Get a 2-point interest rate reduction (to as low as "Prime") when you list your completed project for sale with one of our preferred REALTORs on at least a 90-day listing agreement.
Taking on a bigger project, or want to build a home? Use our Construction Loan. This product allows you to build projects on a much longer timeline. This product features monthly interest-only payments. Funds are released on a draw schedule as work is completed. The interest rate is subject to annual adjustment, but ONLY if Prime floats higher during the project. Funding Fee paid in cash at loan origination. Up to 24-month term.
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Points is a term from the lending industry that means percentage points, usually referring to interest rates and/or loan costs. In terms of loan costs, a point is equal to 1% of the total loan amount. (1 point on a $500 loan is $5.) In terms of interest rates, a point is equal to 1 full percentage point of interest. (The difference in an interest rate of 6% and 7% is “1 point.”)
If you are taking out a “Hard Money” loan, you won’t pay any upfront funding fee. We only get paid when you sell / refinance. On longer term “Construction” loans, yes, the funding fee is due upfront, and out-of-pocket.
There are multiple reasons we limit our borrowing amounts with both a minimum and a maximum. One reason is that we think there is less risk when trying to sell a rehabbed home that is in the middle of the local market rather than the extreme low-end or extreme high-end. We also have costs associated with making loans, and with micro-loans we may not be able to make a profit as reliably.
As a new company in this marketplace, we have made the choice to price our loans where we can make money alongside you rather than your profits from you with get-rich kind of rates. All of the agents we work with are successful already, but they do pay a referral fee to us from their listing commission that offsets what we lose by discounting our rates.
To get a 2-point discount on your interest rate, you only have to list the property on a 90-day or longer listing agreement with our preferred agent. Once you show us you have, your rate is permanently discounted – even if that agent is unsuccessful in getting the house sold. After the 90-day listing, you can refinance, sell with a different agent, or whatever else is in your best interest, and your interest rate discount is still secure.
Mahncke Funding wants to be your repeat finance partner. We look at our customers as clients who will come back to use our services over and over again, as long as we treat them right. Sure, we’ll make a lot less money if you pay us off right away, but our belief is that in the long run we’ll make more money with you when we treat you as a partner rather than a piggy bank.
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