STATEWIDE CAPITAL - Posted by Darlene

Posted by Jim Kennedy - Houston, TX on July 22, 2001 at 22:54:03:


STATEWIDE CAPITAL - Posted by Darlene

Posted by Darlene on July 21, 2001 at 23:26:34:

Can anyone tell me if they have used Statewide Capital,and if so what are there lending guidelines,and how do they EXACTLY work. I’m a first time investor on flipping,and was told to work with Statewide, but don’t want to make alot of mistakes(if possible) in the beginning. I guess I could give an example of how I think it works, and then someone can correct me if I’m wrong. They will lend me 65% to 70% of the ARV,and will give me 6months to return there money plus interest. So during that 6 months I will purchase by getting seller finance,and rehab the place with the money I get from the private lender(maybe do 1 or 2 other investments if possible),find a buyer,or already have one in place,and then sell my note to mortgage company at a higher price then what the house was sold for that will make me a profit,and then give the private lender is money back with interest,and the buyer pays whatever I have sold the note for. If this is not correct Please send me in the right direction. THANKS IN ADVANCE.

Re: STATEWIDE CAPITAL - Posted by Mike

Posted by Mike on July 23, 2001 at 10:56:07:


What you want to do will never work with Statewide or with any hard money lender that I know of. I have used Statewide on a couple of deals and definitely recommend them. What they do is lend 65% of the ARV. Let’s use an example. You negotiate to buy a house that has an ARV of 100k. You plan to buy it for 50k and it needs 12k in rehab. Statewide will loan 65k. Basically, this leaves 50k to buy 12k to fix and about 3k left over for fees. By the way, they do charge 4 pts. and 12.5% interest. Not bad terms, for the use of the money. 6 months should be enough time to rehab and sell or at least refi. to get them out of the deal.

Hope this answers your question.

Re: STATEWIDE CAPITAL - Posted by Becky IL

Posted by Becky IL on July 22, 2001 at 14:14:14:

We’ve used Statewide Capital and they are very competitive as far as hard money goes.

Now, what you said above is not how you want to buy the property, because if you get both hard money and owner financing, you’re paying too much for the property. If you can get seller financing, then go for it, but you won’t need the hard money loan. By the way, hard money loans are expensive, so if you have alternative financing (i.e. owner financing or private lenders or a money partner), then you should go that other route.

In order to determine how much you will pay for the house, you need to know what you can sell it for after it’s repaired (ARV), the repair costs, your holding costs (including the cost of financing), and how much profit you desire to make. Once you have deducted these from your ARV, that figure is the most you want to pay.

Re: STATEWIDE CAPITAL - Posted by Bianca

Posted by Bianca on July 22, 2001 at 22:31:36:

Does this company have a website or something where I can find out more information about them. I need a hard money loan. Thanks!!