Why Team Tangible?
Team Tangible provides cash ﬂowing businesses which are tangible because they have 3-5 years of actual ﬁnancials, employees, and management in place.
Team Tangible is a completely unique and forward moving ideology that will create tremendous opportunity for individuals or families that are ready to take control of their destinies, have a willingness to secure their future, and ready to build a legacy for their families.
How can Team tangible assist you in building a legacy?
Knowledge applied is power-always!
We can show you how to ﬂip houses and it becomes a supplement to your current income, make it your full-time job, replacing your income, and how to create positive cash ﬂow that will lead to the development of your legacy.
The most unique aspect of Team Tangible is the fact that it was developed and produced by a great ﬁnancial institution, Blanks Financial Solutions.
Blanks Financial Solutions is a company that provides complete customized ﬁnancial solutions for their clients, which makes the development of Team Tangible a rising star in the industry.
Team Tangible has programs designed to help the traditional home owner as well as the investor by providing more options, and real estate strategies that a regular ﬁnancial institution simply can’t offer.
You are approved at your ﬁnancial institution for a home loan and your dreams are just about to come true. You are new to the process, and this will be your ﬁrst purchase. You know you make a decent salary, and you have saved some money, so you think you are all set.
The loan ofﬁcer advises you that all you need now is your down payment and your closing costs. You ask how much are they?
I have some saving’s, that should cover it. The loan ofﬁcer says your down payment is usually 20% of the total home purchase price. The closing costs are about 3.5%, and it’s a buyer’s market, so homeowners aren’t taking care of those costs anymore. Also, inspection of the home is an additional cost.
Financial Institution- Provides a loan to cover your mortgage
Provides a loan to cover your mortgage, your down payment, your closing costs, your inspection, the new living room furniture you saw last week, and that ﬂat screen TV for your man cave.
Which would you choose?
There are many ways in order to purchase a home through our program with Team Tangible! Listed below are the different avenues that can be taken in order to make your home purchase a reality.
Cash on hand refers to any money that you may have saved, inherited, or possibly any money that has come from a private investor. Transactional Funding is a speciﬁed type of loan that will be deﬁned more in detail later in this guide.
A personal loan can be used for any purpose that you choose. The criteria for the personal loan is a minimum credit score requirement (from all three credit agencies) is 680 or better. The other option is that you may also take out a business loan that has different criteria but also based on your credit score as well as revenue that is generated from the business. There are several options available if this is the avenue you decide to take.
Either of these options will require a short form ﬁlled out to determine how we can assist in funding.
The charging of real (or personal) property by a debtor to a creditor as security for a debt (especially one incurred by the purchase of the property), on the condition that it shall be returned on payment of the debt within a certain period.
We offer traditional mortgages with requirements that can’t be beat!
All programs we offer for mortgages have a minimum credit score of 500!
We can provide mortgages in all 50 states with a low 500 credit score requirement OR
100% Finance Program (ONLY for Colorado, Texas, Nevada, California, Hawaii, Georgia and Florida)
There are two ways to qualify for this program that is $0 down payment, and $0 closing costs (further explanation required) Fall within the median income of the county that you are wanting to purchase your home within. This is a grant program.
If you don’t qualify for the average median income, there is still the opportunity for $0 down and $0 closing costs (further explanation required) Scenario for Mortgages (Residential)
Carl has decided he wants a home for his family. He understands that depending on his credit score his interest rate may vary. He came to BFS as he knew what the bank offered, and he wanted to get approved for a larger home. He heard from a friend about the 100% ﬁnancing program that they have in Texas, and wanted to know what they could do. After speaking with our ﬁnancial experts, Carl is on his way to home ownership.
Earlier the words transactional funding was referenced in the guide. The deﬁnition is listed below, as well as an example of how transactional funding works.
What is transactional funding?
Transactional Funding (Commercial and Residential)
This is funding that is broken down into three parts. Let’s use A, B, C;
A-The seller of the property,
B-Investor of the property, and
C-Backend buyer (ﬁnal owner of the home)
Scenario of Transactional Funding
The house sells for 60,000.
Get a contract on the house for 60,000 purchased the home from (B) for 200,000
B goes to the transactional funder because they have a contract with both A and C (because you can show C
as being a pre-approved back-end buyer for the amount that the house is being purchased for.
After obtaining an estimate for construction/rehab of 45,000, (B) Must submit the contract with (a),
(B) Must submit the contract with (C), and then C- again has to show that he is an approved back-end buyer
for the amount of money, the house is being purchased for.
Scenario of Extended Transactional funding/Hard Money
After I submitted all of the documentation, I have a credit score of 680 (all three across the board),
I received a $150,000 from a line of credit. I spent $45,000 of the $150,000 to cover the rehab costs.
I then got a rehab loan for 85% LTV, so I made a down payment of $6,750 which is 15% of the $45,000.
So that means that 85% of the rehab was ﬁnanced.
Now because all the documentation is submitted, the transactional funder/hard money lender will put up the $60,000 for (B) within 72 hours or more.
The contract total cost of the purchase equates to 105,000.
The transactional funder/ hard money lender sees that (B) has a monetary spread (105,000 to 200,000), so the transactional funder/hard money lender provides the 60,000 (B).
Transactional funding will charge of their money that was loaned to B after closing on the house.
After expenses ($60,000 x 5%= $3,000 to transactional funder plus the original $60,000/ plus $45,000 on
rehab equates to $108,000 in expenses. This house was sold for $200,000 which leaves a proﬁt of $92,000.
Hard Money Loans
These types of loans are backed by the value of the property, not by the credit worthiness of the borrower. Since the property itself is used as the only protection against default by the borrower, hard money loans have lower loan-to-value (LTV) ratios than traditional loans.
Scenario for Hard Money Loans
Jack has a home and a rental property mortgage. He ﬁnds another property that will make good income.
He can’t qualify for another mortgage so he can acquire the new property. This is an option for him to have more revenue. He takes out a persona loan to take care of the down payment on hard money.
When purchasing a property with hard money, one options for funding is 70% to 85% of the loan to value (LTV).
If the home is selling for $50,000 but the as is value is $80,000 we can ﬁnance 70% to 85% of the $80,000.
When purchasing a property with hard money, another option for funding is 70% to 90% loan to cost (LTC). Example: they are selling a house at $50,000 and it needs
$10,000 in repairs we can ﬁnance 70% to 90% of the $60,000. This is the loan to cost (LTC)
When purchasing a property with hard money, another option for funding is 70% to 85% after repair value (ARV). Example: they are selling a house at $50,000 and has $10,000 in repairs.
The after-repair value (ARV) on the house is $120,000.
The funding will be based on the $120,000 because it’s the value of the property after repairs are completed.
This is purchasing a property and without spending any money rehabbing the property, it is resold to another entity for a proﬁt. There are two ways to purchase this type of property. Either you can utilize a personal or business line of credit, or you can use any available funds. An example of how to purchase a wholesale home is listed below:
Scenario for Wholesale Purchase/Foreclosure
1. Find a home that’s worth $50,000
2. The home needs a lot of work, so you are able to purchase it at a lower amount ($10,000)
3. You put no money into the rehab
You bought the house for $10,000.
You don’t spend any additional money on the home. Now you want to sell the home for a proﬁt.
You list the home for sale, and increase the selling price to $20,000.
The difference of what you bought the property for and what you sold the home for is your proﬁt.
You have a $10,000 proﬁt on this property.
Typically, you can put $5,000 to $10,000 on top of your purchase price to leave room for your investor to make money. Any amount over what you originally purchased the home for is proﬁt.