RMAC Lending

Phone: 405-418-5800

Address: 7201 N. Classen Blvd., Ste. 105, Oklahoma City, OK 73116

Website: https://www.rmaclending.com/

Email: [email protected]

States They Lend In: Texas, Illinois, Oklahoma

 

What We Do

 

We loan money to investors who buy, fix & flip houses.  These loans are short term rehab loans.  We take a first position mortgage (or deed of trust) as collateral.  Landlord investors may also borrow from us to buy, fix & refinance.  We call ourselves a Private Lender or a Hard Money Lender.

We are primarily an asset lender so we take the time to evaluate your ability to find and purchase a property, and to properly rehab it.  These talents are more important than your credit score!

We offer personalized service and fast execution.  If you get a house under contract at a discount, contact us.  We can close quickly and we are here to help!

 

THE PROCESS

 

General Qualifications

 

We are looking for general business experience and a tri-merged credit score of 700.  It helps if you also have real estate experience, especially in fixing and flipping houses.  You need to have approximately $25,000 of cash or immediately available credit for your project's out-of-pocket expenses.

 

Register as a Customer

 

If this is the first time you have done business with us, you will need to authorize a background check and individual credit report.  A $100 Registration Fee is charged.  This allows us to prequalify you and to set you up as a customer in our system.  Begin this process today on our "LOANS" page to get one step closer to obtaining the financing you need.

 

Submit a Financing Request (this step is optional)

 

When you identify a house (but before you have the house under contract), go to the "LOANS" page of our web site and submit your request for financing by completing the online form.  Feel free to call us at this point in the process at 405-418-5800.  Otherwise, we will call you (usually within 24 hours).  With the information you have given us and payment of the $50 Financing Request Fee, we will give you an INDICATION of whether we will be able to make the loan (not a loan commitment).  This indication will give you a feel for how much cash you will need to bring to closing, and it is an important step for you to decide whether you want to proceed.

 

Get a House Under Contract

 

Sellers always want a quick closing date, especially when they are selling the house at a discount; however, always allow plenty of lead time for you to fully evaluate your deal.  Analyzing the repairs and getting quotes from contractors can be especially time consuming, but is often the most critical component of the deal.  When making your offer, please also consider how long it will take for the Seller(s) to sign the contract and return the signed contract to you.  As soon as you get the house under contract, you should submit the project to us for evaluation.  WE REQUIRE THREE (3) FULL WEEKS from the receipt of your request until closing.  More time is better.

 

Order a Property Valuation

 

After you enter into a contract to purchase a house, it is necessary for us to perform a Property Valuation to make sure that the project makes financial sense for you and for us.  There is a $750 fee for this service (which also includes the cost of an appraisal by a licensed appraiser). We advise you to put a contingencies in your contract in case you later discover that the repairs will cost more, or, if the property fails to appraise for the expected ARV.  Usually within five business days, we will complete our evaluation.  If time is of the essence, this process might be shortened depending on our workload.

 

Financing Decision is Made

 

After we finish the Property Valuation and evaluate your financing needs, we can give you a preliminary commitment.  We will be in contact with you during this time period to discuss the deal.  Importantly, we will discuss the repair budget and other unique aspects of the transaction.  As soon as we get a copy of the purchase contract and your written repair budget, we can order the appraisal.  Generally, it takes two weeks for the appraisal to be completed.  Assuming that the appraisal validates the After Repaired Value ("ARV") then the financing decision is made.

 

Proceed to Closing

 

After we receive the title comittment, we will review it to insure that the title is clear.  The next step is for you to obtain property insurance, which must name RMAC Lending LLC as the "mortgagee".  RMAC Lending requires that the policy be issued (and PAID) for one (1) full year and that the premium be collected on the HUD-1 and paid by the title company to your insurance agent.  DO NOT ARRANGE TO PAY FOR THE PROPERTY INSURANCE IN MONTHLY INSTALLMENTS OR DIFFERENTLY AS STATED HEREIN.  Just prior to closing, the title company provides a HUD-1 for our review and approval, after which we can give our "clear to close" and proceed to closing and funding of your transaction.

 

Rehab the Property

 

You must hit the ground running and rehab the property according to the repair budget.  Request draws from us via email, and we advance funds as the progress continues until your loan is fully advanced. There is a minimum of $10,000 per repair draw (although the final draw may be less).  We often visit your property multiple times during the rehab.  We charge a minimum of $250 in repair draw fees (2 x $125) and these are paid upon the sale or refinance of the property.

 

Exit Strategy

 

Market and sell the property; or, if you plan on keeping the property as a rental, refinance into a permanent loan. Time is of the essence.

 

SUMMARY of TERMS

 

• Program is for rehab of Single Family Residences not for personal use^*
• Loans are made only to business entities and must be personally guaranteed
• Our customers may include partners in their entity; however, our customer must own the majority ownership (51%) OR have 50% AND have ultimate control over decisions
• New customers must payoff the first loan with RMAC Lending before qualifying to do multiple loans
• Financing up to 70% ARV
• Up to 100% of repairs can also be financed
• Maximum Loan Amount = $450,000
• Minimum Loan Amount = $50,000
• Minimum Origination Fee = $3,500  ($1,750 in OKC)
• No Condominiums
• No Townhomes
• No Property with a shared foundation, wall or ceiling.
• No Multi-Family structures (i.e., No Duplexes, No "2 Flats", etc.)
• Loan Terms vary somewhat with credit of individual borrower & property
• Interest Rate = Range of 13% to 15% per annum^**  (11.5% to 13.5% in OKC)
• Origination Fee = 5.0%  (3.5% in OKC)
• Term = 6 Months
• Renewal = 2 Months (with Lender approval and additional fee)
• Loan Agreement and Loan Documents state full terms^***

 

If you would like to get additional information before you have a Property under contract or if you simply want to get in touch with us, please use the "CONTACT US" page instead.
*Lending in Illinois, Oklahoma & Texas, to persons or entities for personal or household use (i.e., to "Consumers") is regulated by the respective state regulator.  We are not licensed in Illinois, Oklahoma or Texas for mortgage lending for personal or household use.
Consequently, if you or any family members intend to live in the Property (even if you are fixing it up), we cannot lend to you.  By submitting this online form you are certifying that the intended purpose of the loan is for business purposes only.  An additional certification in the loan documents is also required.  Thank you for your understanding.
^**Rates vary somewhat with the level of risk.  Call for guidance.  For loans guaranteed by individuals with a tri-merged credit score of 730 or better, the interest rate is reduced by 1.0%.  For loans with LTV less than 50%, the interest rate is reduced by 1.0%.  Other factors may influence the rate also.

 

***These summary loan terms are solely an illustration.  These summary loan terms on this website do not constitute a contract.  The parties may enter into a contract only by using a written & signed contract.

 

LOANS

 

This web site is for use only by investors rehabbing houses in these markets:

Dallas, Texas
Oklahoma City, Oklahoma
Chicago, Illinois

Effective August 15, 2015 we are implementing this policy change:
RMAC Lending will no longer make a loan to you as an individual.  You must form an entity such as a limited liability company, corporation or partnership and use that entity to purchase property.  RMAC Lending will then make the acquisition and rehab loan to that entity.

We make loans through this web site to rehabbers and landlords for business purposes ONLY.  If you are seeking a loan to buy a house for you or for any family member to live in, then you may not use this web site.

Before proceeding, review the web pages using the links to the left for "THE PROCESS", "TERMS", "ARE YOU READY?" and "CHOOSE YOUR PROPERTY WISELY." You may then  return to THIS web page with the link, "LOANS".

Our initial set-up fee is $100, which defrays our costs in pulling a credit report, a background check, pre-qualifying you for the program and additional setup costs on our end.  This fee ensures that our time is spent on people who are serious, which allows us to give better service to our qualified customers.