Our platform allows both lenders and sponsors (real estate investor) to choose opportunities to invest in real estate thus satisfying the lenders need for greater returns on their money and borrowers needs for non traditional funding. Investors and sponsors can choose to invest in Fix and Flips, Buy and Holds, Bridgeloans or Joint Ventures either as a purchase or refianance. The applies to both residential and commerical properites and all loans are considered commerical loans and are not for primary homes. Lenders can earn higher than average interest rates - generally 3 to 4 times the rates currently offered by bank CDs and other Traditional Investment Plans.

 

Many of the deals presented can fit the models of lenders we currently work with. If that is the case we will refer the real estate investor to a third party traditional lender. There will be no cost to you except the $49.00 placement fee. All other fees charged will be from the third party and you have the choice to either except or reject the term sheets. 

M2MFunding specializes in deals that aren’t typically funded by lenders at the moment. Such as loans under $75,000 or joint venture or equity positions.

Time of the essense 

Negotiations 

Lending guideline changes

Minimum and Maximum loan limits

Excessive fees

Limit on number of mortgages per borrower

Excessive paperwork

Numerous delays

Lack of full capital 

Property unmortgage due exessive repairs or non working heating/electrical systems.  

Sponsors purchase properties at a significant discount to cover the high interest rates to complete their projects. 

Fix and Flips: As a secured first lien position for acquistion, renovation costs held in escrow released in construction draws based on scope of work. Maximum loan to ARV (After Repair Value) is 75%.  

Buy and Holds: As a secured first lien position for acquistion with a current tenant in place with a lease and a third party licensed property management company. Maximum LTV (Loan to Value) is 75%.

Bridge Loans are short term funding (generally 6 months to 18 months) with a specific take out stategy in place. Example a refiance or resale in place. 

Joint Ventures (JV) holds and equity position in a tranaction. 

Absolutely. How many houses do you know in your neighborhood that are eye sore that bring down your property value? Sponsors improve the value of a property by rehabbing a home for a new home buyer. Too many zombie homes in an area attract crime and squatters. Sponsors improve the safety of the neighbor when homes are repaired and occupied.

This is valid concern. In fix and flip the goal is to purchase quickly and sell even faster. Most of the projects are complete in 6 - 8 months. The market doesn’t tend to shift that dramatically in a matter of months.   

Buy and hold deals have significant equity and the property must cash flow. Even if the value of the property declines rents still support the debt service and therefore lenders are not generally impacted.  

Rates are generally 6-10% based on risk and term of the loan.

Vary depending on the type of investment you choose. Terms are usually between 6 months and 5 years. 

Occasionally, situations may occur where the property may be sold sooner than expected. In that scenario we give notice and then allow you to choose another investment 

Typically, payments are sent out on a monthly basis but for a short term fix and flip or bridge loan a large lump sum could be paid at resale closing. On a longer note, payments will be sent out monthly, just like a typical mortgage.

No. There are no guarantees offered. All investments have some form of security interest in real estate. However all properties will have property hazard insurance paid for by the Sponsor listing the investors as additional payees.

Depends. Self Directed IRA are always elidgible to invest in these projects. However, depending on your type of retirment account you may not be able to. Please check with tax advisor and employer.

This varies on the type of property. Fix and Flip will have vacant dwelling policy, and any buy and hold properties will have Landlord Tenant Policies with rental loss coverage of a minimum of 6 months.

It is our policy to have the sponsor pay for all the closing costs so that your entire investment goes to work for you. However, if there are any bank charge to wire funds that would be passed onto the lenders.

In this unlikely scenario, M2M would discuss the options with you. One option is to simply transfer ownership of the property to you. In most cases M2M would take over the project and complete it .