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FOR A LIMITED TIME: Avalon Per Diem services are billed at $250 per day (Minimal 3 days. $750). At least $50,000 of verifiable equity and or a property with a minimal cash flow of $100/mnth, guaranteed PRIOR to per diem payment. Up to three people may participate in services & instruction.
INTRODUCTORY PROGRAM: One of the most popular features we offer is the opportunity for first time real estate investors to take advantage of our Per Diem specials. This service includes, but may not be limited to the following:
1. Identification of at least three acquisition projects with no less than $50,000 of verifiable equity in each prospect.
2. Initiation & Coordination of the acquisition of one of the selected projects.
3. Filing of Ownership Entity (i.e. LLC, Corp, Trust).
4. Website & Domain.
5. Employers Identification Number.
6. Business Phone Number Reservation.
Services may or MAY NOT be in cities or areas where Per Diem participants reside. LOCALES are to be approved by one or all prior to payment for services.
Once projects have been identified and procured by one or more members or partners, Avalon PEG will provide direct consultation as necessary; however, Avalon PEG will NOT be responsible for the day-to-day context or business operations. Partners or members will agree to this prior to Per Diem engagement.
NOTE: Avalon to receive ten percent (10%) or greater vested ownership interest in any property procured on behalf of members, clients, or partners without exception.
A transaction fee payable expressly to Avalon may be negotiated aside from any amounts stipulated in engagement for services. This fee will not dilute amounts guaranteed under any agreement entered between Avalon or its partners, members, or clients.
BRIDGE FUNDING: A Bridge loan is short-term loan or financing used until a person or company can secure permanent financing or pays off an existing obligation.
GAP FUNDING: Gap funding for real estate investors closes the “gap” left between what a hard money lender covers and what your investing project costs.
A typical hard money loan only covers 70% to 80% of the purchase price of a property. That leaves you to come up with the other 20% to 30% as a down payment, plus closing costs. And while most hard money lenders do provide 100% of the renovation costs, they require you to put up the money for each phase of repairs first, then they reimburse you in draws.
In other words, you need tens of thousands of your own money to flip a house or do a BRRR deal—unless you borrow from a second source for real estate gap funding.
Theoretically, you can use gap funding to flip a house with no money down. But its uses go beyond trying to invest with nothing but other people’s money.
Sometimes investors run over budget on the renovations of a flip and need a quick influx of cash. Alternatively, a renovation project may take longer than expected, pinching them on carrying costs and risking foreclosure.
In other cases, investors have most of their money tied up in another rehab, but find an outstanding deal too good to pass up.
Use leverage in real estate carefully. The more leverage you use in a real estate deal, the higher your risk. But sometimes, leverage can help you earn more money by salvaging a deal you’d otherwise miss out on.
There are many potential sources of gap funding for investors. While not an exhaustive list, consider these options for real estate gap funding.
Some lenders specialize in gap funding for real estate investors. Because they take a second lien position behind the hard money loan, and because they’re lending a high loan-to-value ratio (LTV), they take on enormous risk. This means they charge accordingly, with high-interest rates and fees. Some gap funding lenders also require a percentage of your profits from the deal to make the loan worth their while.
MICRO FUNDING: Once an offer to purchase a property has been accepted, Initiation (Micro) funding can be extended to the buyer from any private source. These micro loans are typically small and are used for incidental expenses such as application fees, appraisals, inspections, travel, etc. Since the loans amounts are typically very low, interest for these extensions may be very high relatively speaking. Micro loans can be rewarding if they are deployed in well structured transactions that are set up to close quickly. Micro funding amount typically starts at $2,500. Returns on this funding ranges from 50-100% depending on circumstances. Funds typically re-paid on the front end of our acquisition transactions.
EMD FUNDING: Earnest money deposit (EMD) is the initial money put up for the purchase of a property. This money is usually placed into title or escrow and is applied to total purchase price of a property acquisition.
We may facilitate EMD loans for transactions that meet our criteria. And we may utilize EMD extensions through our network of resources whenever warranted. In this scenario we will typically make sure a transaction is in its latter stages so that we can move the money in and back to our funding Partners quickly. We will not request one of these loans if there appears to be any problem with closing.
A critical service Avalon provides is funding assistance for our Acquisition Partners. We have our finger on the pulse of the most aggressive private lenders in each market we canvass. And there may be times where we will opt to provide in-house funding on the most premium deals that we select for our Acquisition Partners. Partners may opt for their own funding resources as well.
Transactional loans are extremely short-term loans (ie. 1-5 days) that afford an otherwise qualified end user borrower the ability to purchase an acquisition outright provided there is a third party or entity ready to purchase the acquisition from that borrower. These loans typically have no upfront or additional fees and involve no appraisals or credit checks. Fees for this service may vary, but they are usually from 1-3 transaction points. Most lenders will only charge one point for loans less than two days.
Thank you for visiting our site. We hope to provide everyone who engages with Avalon all of the resources they need to be successful in bringing their businesses to life. Helping our community is what we do. Feel free to click onto “Director Bio” link above for more information on Director of Operations.
