CJJV Real Estate Investing, LLC Lending Policy
1. Introduction
CJJV Real Estate Investing, LLC (hereinafter referred to as "CJJV REI" or "the Company") are NOT Direct Lenders. They operate as an intermediary between borrowers and a network of over 150 private and hard money lenders. This policy outlines the Company's lending practices, types of loans available, and the terms and conditions under which loans are facilitated.
2. Scope
This lending policy applies to all lending activities conducted by CJJV REI on behalf of its network of lenders. The Company does not act as a direct lender; instead, it facilitates connections between borrowers and third-party lenders offering various loan products.
3. Loan Products
CJJV REI facilitates a variety of lending options through its network of lenders, including but not limited to:
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Bridge/Rehab Loans: Short-term loans designed to finance the purchase and renovation of properties.
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Fix & Flip Loans: Loans tailored for investors purchasing properties with the intent to renovate and resell for a profit.
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Debt Service Coverage Ratio (DSCR) Loans: Loans based on the property's cash flow and the borrower's ability to service debt.
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Ground Up Construction Loans: Loans for new construction projects from the ground up.
4. Lender Network
CJJV REI works with a diverse network of over 150 private and hard money lenders. These lenders are carefully vetted to ensure they offer reliable and competitive loan products. The Company continuously evaluates and expands its network to provide borrowers with a wide range of financing options.
5. Borrower Eligibility
To be eligible for loan facilitation through CJJV REI, borrowers must meet the following criteria:
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Creditworthiness: Borrowers must demonstrate a satisfactory credit history.
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Experience: Borrowers should have experience in real estate investment, particularly in the type of loan they are seeking.
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Property Details: Borrowers must provide comprehensive details about the property being financed, including location, condition, and intended use.
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Financial Documentation: Borrowers are required to submit financial documents, including income statements, tax returns, and proof of funds.
6. Application Process*
The application process for obtaining a loan through CJJV REI involves the following steps:
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Initial Inquiry: Borrowers submit an initial inquiry detailing their financing needs.
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Preliminary Evaluation: CJJV REI conducts a preliminary evaluation to determine the borrower's eligibility. (Pre-Loan Application - No HARD PULL)
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Lender Match: CJJV REI matches the borrower with suitable lenders from its network based on the borrower's requirements and eligibility.
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Loan Application: The borrower completes a formal loan application, providing all necessary documentation.
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Lender Review: The matched lender reviews the application and conducts due diligence.
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Loan Approval: If approved, the lender provides a loan offer with terms and conditions.
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Closing: Upon acceptance of the loan offer, the borrower proceeds to closing, facilitated by the lender.
*(Depending on the lender a one-time non-refundable application fee may apply.)
7. Loan Terms and Conditions
Loan terms and conditions vary by lender and loan product. Common terms include:
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Interest Rates: Typically, higher than conventional loans due to the short-term nature and risk profile.
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Loan-to-Value (LTV): The maximum LTV ratio varies but is generally between 65-75%.
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Repayment Terms: Short-term loans usually have terms ranging from 6 months to 3 years.
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Fees: Borrowers may be subject to origination fees, processing fees, and other closing costs.
8. Responsibilities of CJJV REI
CJJV REI is committed to the following responsibilities:
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Transparency: Ensuring clear communication of all loan terms, fees, and conditions to borrowers.
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Support: Providing guidance and support throughout the application and funding process.
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Compliance: Adhering to all applicable laws and regulations in the facilitation of loans.
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Confidentiality: Maintaining the confidentiality of borrower and lender information.
9. Dispute Resolution
In the event of a dispute between the borrower and lender, CJJV REI will act as a mediator to facilitate a resolution. However, the ultimate resolution of disputes will be governed by the terms and conditions set forth in the loan agreement between the borrower and the lender.
10. Amendments
CJJV REI reserves the right to amend this lending policy as needed to reflect changes in business practices, regulatory requirements, or market conditions. Borrowers and lenders will be notified of any significant changes.
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