May 06, 2022
April 12, 2022
Jackelyn and her team did an exceptional job! Jackelyn always picked up the phone and answered all my questions. Also, AE and team were quick with email responses. The loan closed in 13 days
December 29, 2021
Jackleyn is one of the most professional associates I’ve ever worked with. Truly a pleasure
November 16, 2021
Jackelyn is a real treasure and I am glad to have her on my team! I wish you all did residential mortgages! My whole firm would use you! Thanks Jackelyn for your help!
September 01, 2021
Jackie rocks!!! I highly recommend her!!!
August 04, 2021
We love Jacky. She is very knowledgeable about the production. She offers assistance throughout the whole process.
January 03, 2020
Jackie is the best partner she follows up even when I got disinterested she kept plugging away.
May 13, 2019
Jackie and Rebecca were wonderful keeping my husband and I informed on the whole loan process, and very professional!
Financing Built for Real Estate Investors
Whenever you're ready to invest in real estate, CIVIC is ready to help
Three Reasons Why to Consider a Private Money Lender
Jackelyn Gonzalez | CIVIC Financial Services
November 29, 2022
HOW TO CHOOSE A REPUTABLE LENDER
From the CIVIC Blog
When you are ready to find a trustworthy and reliable hard money lender, conducting your due diligence is very important. While it’s easy to be lured in by cheaper rates, don't forget to do all the math. The process of finding a reliable financing partner is easier if you know what to look for so be sure to take you time to find someone best suited for your needs. It's important to consider experience, adaptability access to capital and a proven track record of success. Experience & AdaptabilityHow many loans have they funded? Do they have experience addressing challenging scenarios, dynamic markets, or unique property conditions?Your sales associate, broker or lender needs to possess a broad perspective and know how to deal with challenging scenarios, unique market or property nuances, and fluctuations in the market. The industry has been feast or famine over the past decade, with improved quality and performance since going through the financial crisis. The pros who have weathered the ups and downs can bring that expertise to benefit you and your business which makes experience paramount.Access to Capital & Track RecordWhat is their capital source? Are they lending their own money, using a bank, or brokering? How long have they been lending?At the onset of the pandemic, many lenders were over-leveraged and reliant on capital partners to continue funding loans. However, warehouse lines dried up and institutional investors paused. Only the strongest, well-capitalized lenders prevailed. To protect yourself, identify their lender’s capital source. Are they lending their own money, using bank lines or brokering? Ensure they have an uninterrupted track record of funding loans as well as the strength and capacity to meet financial commitments and adapt to change.As always, we're here to help when it comes to financing for non-owner-occupied residential properties. We'd love to sit down with you to discuss your investment strategy and see if our lending solutions fit your needs. At CIVIC, we have several financing options available for both short-term and long-term investment goals. Give us a call at 877-472-4842 and let’s get started!
November 22, 2022
THE FACTS & FIGURES OF REHAB FINANCING
From the CIVIC Blog
PRESERVE YOUR CASH WITH REHAB FINANCINGFrom replacing cabinets and flooring to adding one more bedroom, home renovation costs can really add up. The latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics noted a 35.6% increase in the prices of goods used in residential construction since the start of the pandemic. While every project is different, it’s no secret that many investors view their renovation budget as the core component of their return on investment -- but at what cost? With rising material costs, many investors are faced with cash flow concerns. These issues are huge for investors that are managing multiple projects at once, as the more money they have tied up in renovations the less cash flow they have to keep their investment strategy in motion. When it comes to your renovation, the less cash you put in, the more liquidity you have. Most hard money lenders offer some form of Rehab Financing on top of your base loan amount. This type of financing helps investors maintain liquidity as it reimburses them for the renovation costs which keeps their cash working for them. From what it is and how it works to what lenders require, we’re diving into everything you need to know about Rehab Financing.What is Rehab Financing? Investors often find that conventional mortgage financing just isn’t suitable for their needs. The traditionally long closing times and restrictive requirements can quickly start to disrupt their investment strategies. Many investors are now turning to short-term Bridge Loans, an alternative form of financing that comes from hard money lenders or private lenders. This option provides investors with the funds needed to complete the initial purchase of the property along with additional funds to cover renovation costs (aka Rehab Financing).In fact, for investors with little to no experience, many hard money lenders might require the borrower to use Rehab Financing when acquiring a Bridge Loan. How Does Rehab Financing Work? When it comes to your loan, think of your total loan amount in two buckets:Your base loan amount: goes to the purchase or refinance of the propertyYour rehab loan amount: used to cover renovations to the property It works as a reimbursement program. You will come out of pocket initially and as work is completed and verified, you will be reimbursed expenses through a series of “draws”. Interest is only paid on drawn funds. Think of it like a credit card. Once you swipe it then interest accrues but undrawn money does not accrue interest. For funds that go unused, there are no penalties, so it’s a great financing option to cover rehab costs to the amount you need it. And if you don’t, no harm no foul.For any fix and flip or construction project, the lender bases their loan amount on After Repair Value (ARV). This is estimated potential value of the property after all stated improvements and renovations have been completed. Most lenders will only finance up to 75% of the ARV when it comes to the total loan amount.Now, let’s put together an example of a scenario where Rehab Financing is being used. You’re buying a property and here are the numbers:Purchase price = $500,000After Repair Value (ARV) = $650,000 Renovation costs = $80,000In this example, if we are financing 80% loan-to-value (LTV) of your purchase price and 100% of renovation costs, your total loan amount would break down like this:Base Loan Amount = $400,000 Rehab Financing = $80,000Total Loan Amount = $480,000In this scenario, the total loan amount is within the typical ARV requirements at about 74% of the $650,000 ARV. Your 20% down payment is $100,000 + any additional closing costs. Rehab Financing cannot be used to cover your 20% down payment or any closing costs. It is dedicated to reimbursing your rehab costs. When it comes to submitting costs for reimbursement, you can elect how many draws you want. You can either pay for everything upfront and get reimbursed at the end or break it down into, for example, 4 draws of $20,000 each.What Do Lenders Require for Rehab Financing? As with all financing, certain documentation is required. It is helpful to have these prepared and ready:The Contractor Profile (if applicable) Insurance verification - typically $1M General liabilityYour Rehab BudgetAs stated previously, lenders generally finance up to 75% of the ARV. This means your total loan amount (base loan + rehab financing) must stay within those borders, especially if you are looking to receive 100% Rehab Financing.Hard money lenders will often finance up to 100% of the rehab budget. In this case, they will usually require a FICO score of at least 640 and that the total loan amount stays within 75% of the ARV. Based on the example above, 75% of the $650,000 ARV = $487,500 which is $87,500 above the base loan amount of $400,000. In that example and with an approved FICO score, the borrower would likely be able to receive 100% rehab financing for the whole $80,000 rehab budget.Maintaining Liquidity is the Foundation of CIVIC’s Rehab FinancingWhether you’re an experienced investor or first-time borrower, CIVIC is here to help you achieve your real estate goals. We’re committed to helping our customers keep their investment strategy on track by helping you maintain liquidity with our Rehab Financing solution. Put CIVIC's Rehab Financing to work for your next project, get started here.
October 03, 2022
GET YOUR CONSTRUCTION PROJECT OVER THE FINISH LINE
From the CIVIC Blog
How the Right Financing Can Save Your ProjectFor builders, a successful project is one completed on time and within budget. But that is no easy feat these days. The construction industry has been hit hard over the past two years. From supply chain obstacles and price increase to labor shortages builders are forced to be dynamic in responding to these challenges.In last year's report from the U.S. Chamber of Commerce, 92% of contractors report difficulty finding workers, and of those, 42% have turned down work and projects due to a lack of skilled workers. To throw more fuel on the fire, the Producer Price Index (PPI) report released by the Bureau of Labor Statistics showed that building materials prices increased 20.4% year over year.As an experienced builder, we know these numbers don't come as a surprise to you. While things may not be trending in an upward direction, it's important to know how to be strategic in lining up financing with the right capital partner to help you through these downturns. So, what do you do when your construction project doesn't go according to plan? Let's dive into your financing options that can help get you back on track and over that finish line.Construction LoansConstruction loans are short-term, interest-only loans that fund the building of a home. Whether its a tear-down or ground-up project, many lenders offer short-term construction loans often at a high rate due to the increased risk. Since these loans tend to have shorter terms, typically for a period of 12-18 months, developers have very little wiggle room for unexpected issues or delays during the building process. Paying off a Maturing Construction Loan Before Project is CompleteWhether it's because of increased material costs, labor shortages and other unfavorable factors maturing construction loans can be a big burden. When investors find themselves in a situation where they have a construction loan that will reach maturity before the project is completed, they have a couple different options: 1. Rush to complete the project on time & risk not being able to deliver the project as they originally planned. 2. Try to get an extension on the terms which comes with paying expensive extension fees or, even worse, no option from the lender to extend at all. OR 3. They can look into other financing solutions that allow them to pay off the maturing loan, extend their loan terms, and complete their project while avoiding extension fees. When laid out, number three looks like the clear solution but often times builders opt for number two, hoping to just extend their original loan and deal with the fees. Why Should You Care About Extension Fees?When it's time to pay off your construction loan but the project is not complete, most lender's will offer an extension in order to avoid maturity default. However, these extensions come with a price and typically can only be extended from 3 to 6 months. Now lets break that down the average extension fee is one to two points of the total loan amount. If you're construction loan amount is $3,000,000 with a one point extension fee, you would expect to pay $30,000 out of pocket to cover that fee. Here's why you should refinance that loan with a new lender. When you refinance, you avoid extension fees all together. Yes, you will have to pay an origination fee, but that cost is rolled into your loan so its not coming out of pocket. In addition to that, you get 12 months for your new loan vs. 3-6 months to get your project complete and sold in time. Talk about taking the pressure off. Need More Funds to Complete the Project? Mid-way through a construction or fix and flip project is not the time to run short on cash, but it is the time when property value traditionally goes up as the project progresses. With private money Bridge Loan solutions, investors can refinance and pull cash-out, sometimes up to 80% LTV*, on the established equity. This provides them with two valuable outcomes:1. The ability to pay off a maturing construction loan 2. and the ability to use the funds to see the remainder of the project throughWhat do Lenders Require to Finance Mid-Construction?When structuring out a financing recapitalization mid-construction, lenders will need to determine project viability. Here are the key project milestones that can help with getting your deal approved:1. House is weather tight. This means the roof is on, the doors / windows are installed, and the siding / stucco are complete.2. Lenders will look for rough plumbing, rough electrical and HVAC. If those are installed, your project is looking good.3. No mechanic's liens. A title report will be pulled to ensure there are no mechanic's liens on the property. Lenders want to make sure you are paying your contractors and sub-contractors.These milestones are crucial because lenders have to make sure there is enough progress to determine the as-is value so they can provide you with enough funds to pay off the construction loan.See the Power of CIVIC's Construction Completion Financing at Work LOAN AMOUNT: $922,000 LOAN TYPE: Construction Completion Cash Out RefinanceLTPP (loan to purchase price): 92.2% This borrower was experiencing a project that was taking longer than expected and facing extension fees of their maturing construction loan. We were able to refinance their previous loan from a different lender which gave the borrower 12 more months to complete the project and the ability to avoid extension fees. They were able to use the funds to pay off their maturing construction loan, put money towards the remaining rehab budget, receive a lower interest rate, and get the time needed to sell the property. Short-term Financing that Gets the Job Done, Literally. Are you in the final stages of a construction project but a loan maturity is threatening to derail your project? Do you need to more time to complete your project but don't have room in your budget for pricey extension fees? Has your project gone over budget but there's still work that needs to be done? CIVIC's Construction Completion Financing is here to help you get your project across the finish line! Find more information here.* 80% Cash Out is available to qualified borrowers. It is subject to decrease based on property condition. Terms and Conditions may apply.
September 09, 2022
CASHING IN ON EQUITY WITH A CASH OUT REFINANCE
From the CIVIC Blog
Capital is the driving force behind every successful investor. Where to get that cash is the question and the answer is your established equity. As real estate investors, you're constantly acquiring more properties and executing different strategies. Whether that strategy is buy-and-hold or fix-and-flip, one thing you should never overlook as you continue to expand your portfolio is your equity.Increased equity is the silver lining of today's market and what you choose to do with it is key. Absent (or in lieu of) cash out of pocket, your current investment property(ies) may very well be the gateway to accruing additional wealth through real estate.For non-owner-occupied residential properties, investors don't have to wait until selling in order to access the equity. With the right capital partner and a strategic refinancing solution, you can tap into the established equity of your properties and pull cash out.Here's how tapping into your equity can help you expand your portfolio and ultimately provide you with that relief you need to continue doing what you do best.TOP 5 WAYS TO LEVERAGE YOUR ESTABLISHED EQUITY1) Pay off a maturing construction loanDo you have a construction loan maturing that you need to pay off? Avoid the fees and overall stress of getting it complete or selling in time by tapping into the property's equity. You can use that cash to pay off your maturing loan and take the pressure off. As a bonus, you'll most likely refinance into a lower rate so your monthly payments get reduced as well!2) Access the equity of your listed property before it even sellsWaiting for an offer on your property? Rising interest rates have slowed down the selling market in many areas. Don't miss out on other opportunities while you're waiting for it to sell get cashed up even before the property sells! Along with acquiring more properties, you can also use this cash for other business purpose expenses like renovation costs for another investment property. 3) Stay competitive as a cash buyer when acquiring more propertiesIn many regions the markets are so competitive that if you don't have a cash offer, your offer is automatically out. Today's sellers don't want to wait on any contingencies or financing, so cash offers will get you in the game and help you win the deal. 4) Tap into the equity of multiple properties and refinance under one loan:What many investors don't take advantage of is the concept of cross-collateralization. Whether you have a few properties with established equity, or several properties with slimmer amounts of equity, cross-collateralization enables you to tap into the equity of multiple properties at the same time and refinance them together under ONE loan.5) Use cash out funds to cover renovation costsStaying liquid throughout a renovation is crucial to not overextending your leverage. As your mid-way through your construction or fix and flip project, the property value goes up. This increased value = increased equity. Pull cash out on that established equity and use those funds to see the remainder of the project through.Understanding your refinancing options are key to scaling your business. Whatever size your portfolio may be, if your properties have accrued some healthy equity, refinancing with cash-out options gives you the power to go acquire more properties or use towards your current properties. Have questions? You can find more information on cashing out here!
September 02, 2022
CIVIC'S SVP OF ASSET MANAGEMENT ERICK WILLIAMS RECOGNIZED WITH 2022 HOUSINGWIRE INSIDERS AWARD
From the CIVIC Blog
We are excited to announce that HousingWire Magazine has chosen Senior Vice President of Asset Management Erick Williams as a recipient of its 2022 Insiders award.The Insiders Award is designed to highlight operational all-stars who play an instrumental role in their company's success, behind the scenes. This year, a group of 50 HousingWire Insiders was carefully chosen by HousingWires selection committee, who based their decision on the individual's contributions to their respective companies and the industry as a whole."Each year, the HW Insiders award represents unsung heroes who are vital to the smooth functioning of their organizations," HousingWire Editor in Chief Sarah Wheeler said. "While they may operate behind the scenes, the work of these honorees has a huge impact on the larger housing ecosystem. We are honored to recognize this impressive group of industry experts."Erick joined CIVIC in 2017, bringing with him 20 years of mortgage lending, servicing, and asset management expertise. Together with his team, Erick is responsible for guiding CIVIC's customer experience after a loan funds. He currently oversees asset management, loan servicing, loan performance, and default assets."As SVP of Asset Management, Erick has been instrumental in the foundation, quality, and performance of CIVICs servicing operations," said CIVIC President and CEO William J. Tessar. "He played a critical role in CIVICs transition from being a closely held private company to a wholly owned subsidiary of a large publicly traded bank, helping his team to adhere to new regulations, service modeling, and reporting requirements rather seamlessly. His leadership skills, in combination with his extensive experience, make him a truly invaluable asset to our team!"The full list of 2022 HousingWire Insiders Award recipients can be viewed here.
READY, SET, RENT!
While the rental market poses serious lucrative opportunities, there is still a lot to know before investing. When it comes to overall profitability, the important factors to consider include what type of rental strategy you intend to follow (short or long
INVESTORS GUIDE TO FINDING THE BEST FINANCING OPTIONS
As an investor, you can prepare yourself to be in the best possible liquidity position to exploit today's opportunities and position yourself for maximum business growth. Financial and business strategies evolve over time and there are...
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January 16, 2023
Love working with Jackie and her team! Wish closing times were faster though, as closings are taking much longer than they used to.
January 12, 2023
Love working with Jackie and her team!
January 08, 2023
Thank you! Great service!
December 27, 2022
Jackie was great. I plan to work with her again and have already referred a couple of people to her who were considering doing refinances for their properties. The only downside was that it took longer than most other companies to close. Jackie was great about communicating and following up though.
December 23, 2022
Jackie is great to work, highly recommend her and CIVIC.
December 22, 2022
Working with Jackelyn was terrific. The followed up when needed and kept pushing the loans through. We've closed 3 loans and I have already recommended her to some friends and colleagues. That said the processing time is longer than other companies and I hope that is something you all can work on.
December 22, 2022
Thank you for all your help!
December 20, 2022
Things are much better, I just wish the timeline was quicker it’s quite slow. Also I wish there was more flexibility with rates. But things have definitely improved.