Are there occupancy requirements for our loans?
Absolutely! We require that the property we give consideration for is a non-owner occupied property. There are no exceptions to this policy.
Is there a minimum or maximum loan amount?
Yes. The minimum loan size os $10,000.00 US Dollars and the maximum loan size is $50,000.00 US Dollars.
What is our lending area?
The following counties only in Pennsylvania: Bucks, Montgomery, Philadelphia, Delaware
Is there a downpayment requirement on a purchase transaction?
Absolutely! We require that our borrowers put down at least 35% of the purchase price. In addition to this down payment, all settlement charges must also be paid out of pocket by the borrower and may not be rolled into the loan. The down payment per
borrower is evaluated on a case by case basis however 35% is the absolute minimum we require. We will re-consider this requirement only if the property appraisers for at least 20% more than the purchase price.
What is the maximum I may "cash-out" if I already own a property free+clear?
The maximum that we will allow for any cash in hand transaction will be 50% of the appraised value of the property, or $50,000.00 US Dollars, whichever is less.
Who appraises the property? Can I order my own appraisal?
All appraisals are ordered through our preferred appraiser relationships and at no time will we use any appraisal besides the one that we order. The borrower is responsible for payment for the appraisal in full at the time that it is ordered.
What does Dynamic Equity Partners want to see when they are qualifying a borrower?
More than frequently, each borrowers situation is different so we may require additional documentation above and beyond the typical documents we require. To get started, we do require a copy of the borrowers W2 statements for the most recent 2 years as well as the borrowers 2 most recent pay stubs. If the borrower is self employed then we will require the borrowers most recent 2 years filed tax returns including personal and business. We require the most 2 recent months bank statements from
each borrower as well. We will also require every property to maintain insurance coverage that covers at least the amount being borrower from Dynamic Equity Partners.
How long is the loan term?
Each loan is setup for a 12 period however an additional 12 month extension is permissable if a satisfactory payment history is proven during the initial period.
How is the monthly payment calculated?
Each loan is amoritized into interest only payments and the full balance is due at the end of it's term.
Are inspections required during the loan term?
There will be an initial appraisal prior to the inception of the loan for each transaction. The only transactions that involve inspections during the loan term are rehab loans at the completion of each phase. The cost for each inspection is $150.
If I decide I want to be an investor, may I cherry pick the projects that I invest my money into?
This is absolutely possible and encouraged. We will run different scenarios by you until you decide to go with something that you are comfortable with?
If I fund a project, can dynamic equity partners help me manage the loan?
Yes! We can manage and service the loan for you for any length of the loans term that you would prefer. Our fee for loan servicing is 3 percent annually and is only collected while the loan is performing.
If I am an investor, how is my money secured? What guarantees do I have?
Your money will be secured via first lien position in a real estate property that is valued significantly greater than your investment. You get to be the lien holder. You are the bank.
What happens if I don't get paid back at the end of the loan term?
Dynamic equity partner has each borrower sign specific documents protecting you as the lender from any potential harm. Each borrower will sign certain agreements that are recordable in the local county of where the property is located. In these agreements, the borrower is waiving their right to any trial by jury and is confessing to the indebtness immediately upon signing the loan documents. These documents protect the lender and saves the lender time and any possible expense that it would
take or cost from protecting it's interest. These documents assure the lender that in any case of default, the lender would be take possession of the collateral between 1 and 30 days.
DISCLAIMER: This is a private partnership therefore investments are not guaranteed by the FDIC. Dynamic Equity Partners is not a registered security with the Securities & Exchange Commission. All investments are by invitation-only. Be sure to consult your attorney, accountant, and/or other licensed professional needed before considering any investment or partnership with Dynamic Equity Partners.