Mortgages For Investors - Robert Clabeaux NMLS# 1965087

04/09/2024

We fund ground up construction projects for those without experience! Reach out if you have a deal you'd like me to run #'s on.

04/08/2024

HOW MUCH WILL MY HARD MONEY LENDER LEND ME?

Ever wonder how hard money lenders determine how much we will lend to you on a short term fix n flip, bridge or ground up construction loan?

First, we look at the 3 "risk" variables...

1.) Credit Score: This one is obvious. The higher the score, the less risky the borrower. In combination with the next two variables below, we decide how much "skin" in the game we require from you.
2.) Prior relevant Experience: We give a borrower with more experience higher leverage. A borrower with, let's say 10 prior completed projects, presents a much lower risk of default than someone getting into this for the very 1st time.
3.) Scope of the Project: We look at the size and scope of the project in determining the risk to us as a lender. A small, cosmetic rehab (paint, flooring) is much less risky than say a major renovation that requires the property to be taken down to the studs or a ground up construction project.

2nd, based on those "risk" variable's, we identify the max %'s of the following 3 leverages...

1.) LTARV: This is the Loan To Value of the ARV of the completed project. Most lenders, including us, will lend no more than 70% of the ARV. If you are buying well, at the right price, you should never be maxed out by this leverage.
2.) LTC: This one is the simplest but most confusing for most of the people I speak to. It's confusing because most people aren't familiar with it. It is not used in the calculation of a conventional loan. It is only used for business purpose or investor fix n flip and/or ground up construction loans. It is simple because you take the cost to purchase the property (or current value), add your rehab and/or construction budget to it and that gives you your total project cost. We then take a % of that based on the 3 risk variables. Newbies can expect between 80%-85% LTC and experienced investors can expect anywhere between 85%-95% LTC
3.) LTV: This is the one that everyone knows and is very simply the loan to vale of the purchase price or current value. Newbies can expect around 80% LTV, while experience investors can expect anywhere between 80%-90% LTV

Example:
Purchase Price $100K
Rehab $20K
ARV $250K
Credit Score 700
Experience 1

In this example we start with the 3 risk variables. Credit is excellent, experience is minimal and the scope of the project is light cosmetic. We start with the LTARV calculation ($250K x 70% or .7). This comes out to $175K. Combined purchase price and rehab is only $120K. Thus, we are safe here. Next, we calculate the LTC ($100K PP + $20K in rehab = $120K x 85% or .85) This comes out to $102K. This would be the max loan amount based on LTC. Next we subtract our $20K in rehab costs, which leaves us with $82K. This is the amount we could apply towards the purchase price. This is 82% LTV. However, since our client in this example only has 1 prior completed project, we would only lend 80% LTV or $80K towards the purchase price leaving us with a loan amount of $80K with a $20K rehab budget.

Let's see those questions!

01/12/2024

We have capital to deploy and are looking for Ground Up Construction Projects to fund! DM or call.
-No experience needed!
-Must have very good to excellent credit!
-Must have cash liquidity!

Why Choose Ground-Up Construction Over Fix and Flip?
✅ Predictable Fixed Costs
Eliminate unpredictable hidden costs associated with fix and flips.
Enjoy the certainty of fixed construction costs from the outset.
✅ Higher Profit Margins
Maximize your profits with a property designed for long-term value.
Avoid the risks of fluctuating market conditions with a tailored investment.
✅ Reduced Risk of Surprises
Mitigate the uncertainty of unforeseen issues in existing structures.
Build with confidence, knowing the project is based on solid foundations.
✅ Customization for Market Demand
Craft a property that meets the latest market preferences and trends.
Attract premium tenants with a modern, in-demand living space.
✅ Time Efficiency
Capitalize on quicker construction timelines, reducing holding costs.
Enter the market faster, maximizing returns in a shorter timeframe.
✅ Energy Efficiency and Cost Savings
Integrate energy-efficient features for reduced long-term operational costs.
Enhance sustainability while appealing to environmentally conscious tenants.
✅ Long-Term Equity Building
Build equity from the start with a property designed for lasting value.
Shield your investment from the short-term risks associated with fix and flips.
✅ Strategic Location Advantage
Identify and secure prime locations before market saturation.
Beat the competition by building in high-demand areas before values peak.
🌟 Invest Smart, Build for Tomorrow! 🌟
Choose ground-up construction to minimize risks, maximize profits, and secure your success in real estate. Connect with us now to explore exclusive opportunities for a strategic and prosperous investment.
Also, now is the time to consider 2-4 unit builds. You can flip the property to an end user who can more easily secure financing using Fannie Mae's new 5% down multi-family loan.
https://www.biggerpockets.com/blog/fannie-mae-launches-5-percent-down-payment-program-for-multifamily-properties
"The major upside of this requirement is that future rental income can be used to qualify for a mortgage loan."
Let us fund your next project!

Effective November 18, Fannie Mae will begin accepting lower down payments on multifamily housing. Read all of the details here.

10/26/2023

So who all is involved in your loan at Park Place Finance?

Right away you are partnered with an Account Executive (that's me!) who will assist you throughout the entire process, but we have a handful of other valuable team players you will encounter. From our underwriters, processors, and in-house servicers, you will receive top service from our entire team!

Learn more on our latest blog -

Meet our real estate investment loan team and learn about their roles, including processors, underwriters, servicers, account executives, and more.

10/05/2023

Another month in the books!

We are grateful to have the privilege of serving our incredible clients from coast to coast, and even as far as the beautiful shores of Hawaii 🌴

A huge shoutout to our dedicated team for their outstanding efforts and a heartfelt thank you to each and every one of our amazing clients.

Park Place Finance
Your Nationwide Private Lender
📲 512-900-7457

09/28/2023

It's another football-filled weekend for our Park Place Finance team. Join us for the ultimate pre-game as we cheer on our Longhorns.

Whether you're a die-hard fan or just looking for a good time, this is the place to be!

Tailgate starts at 11:00am | Kick-off is at 2:30pm

RSVP at https://hubs.li/Q023JmgK0

09/22/2023

Are you struggling to secure financing for your next long-term rental property due to your unique financial scenario?

A flexible financing option that you should consider is the Debt Service Coverage Ratio (DSCR) loan.

Learn the benefits and how to qualify in our latest blog, or give me a shout at 📲 512-900-7457

How can a DSCR loan help your next investment? Learn why a DSCR loan may be the best choice for real estate investors and what you need to do to qualify.

09/21/2023

August was an incredible month for our team! We successfully closed loans for our borrowers and broker partners across 18 states!

Let me know if you're ready to start investing in real estate!
📲 512-900-7457

08/10/2023

We often get asked, do we work with first time real estate investors?

The answer is YES, always under circumstances. Give me a call and I'll walk you through our loan products and requirements, educating you on what options first time investors have.

Park Place Finance
Your Nationwide Private Lender
📲 512-900-7457

07/20/2023

The world of hard money loans may seem intimidating at first, but with the right guidance and preparation, Park Place Finance LLC - NMLS #367411 offers a unique opportunity for individuals seeking alternative financing options.

Check out our latest blog, What to Know Before You Meet with a Hard Money Lender, to gain valuable knowledge and make informed decisions when it comes to securing funding for your real estate ventures.

Unfamiliar with hard money loans? It's always a good idea to meet with a hard money lender. Here's what you need to have ready.

07/18/2023

Redfin's June real estate stats are in 📊 Have you checked them out?

Real Estate Investors, what sources do you love using for finding the ideal market for your next flip or long-term rental?

There's still time to apply today and close your loan by the end of the month!
Give me a call 📲 512-900-7457

06/22/2023

Looking to dip your toe into the world of flipping houses? This step by step guide walks you through everything you need to know about finding fix and flip properties. If you have any questions, message me and I can be a resource for you!

Discover the process of finding, financing, and flipping properties. Unearth potential and transform it into profit with Park Place Finance.