Real Estate Investment Loans - Nationwide Finance Solutions

         Guidelines for Top Payouts
DealerGuidelines





· Copy of the completed credit application
   (including previous residence,
   previous employment, landlord info)

·  Copy of Contract including
   signatures & date of sale

·  Copy of detailed pay history
   (need not be computer generated, but
should  include payment dates and amount) 

We prefer to see these additional documents included 


·        Proof of income (paycheck stubs, bank statements)

·          Proof of residence (utility bill, etc)

·      Copy of drivers license 


Level of documentation of loans submitted
Will have an affect on pricing.


Minimum documentation could result in no approval
Or maximum pricing (20% discount).



Program highlights are as follows:


·     2 year current residency, if current is less than;
       Then 2 year previous in same community.

·      2 year current employment, if current is less than;
        Then 2 year previous in same profession.

·          $1,700 verified gross income

       
NO – AFDC, SSI
(Disability, Retirement OK), IHSS (Caregivers),
Temp Agency employment.

          Maximum term 36 months with minimum
                      3 payments seasoning

        Exception for 42 month term with minimum
                      6 payments seasoning

        Exception for 48 month term with minimum
                     10 payment seasoning  


      Collateral Age/Mileage restrictions

        24 month term or less max 150,000 miles

        36 month term max 125,000 miles

        42 month term max 100,000 miles

        48 month term max 80,000

        No age restrictions if above
       mile restrictions are met

      Additional miles allowed for Honda,
        Toyota, Nissan vehicles

       No luxury type vehicles
Pricing
·          Standard discount 10% with adjustments made for minimum documentation
& program adherence.

·          No Recourse

·          No documentation fees

·          Funding subject to full loan verification

·          Loan purchase subject to client signing Challenge Financial Purchase Agreement

For your personal notes our average discounts
are 12-13%.

Pre-approval takes 1-3 days depending
on the numberof loans.

Final approval and funding takes
1-3 weeks due to verification requirements.

The dealers ability to keep good records
And have cooperative borrowers can drastically Cut down the funding time. 
Hope this helps!   All the best.  
   

Option 2

 
  • Pricing and terms are based on:
    • Average seasonig
    • Individual account payment history
    • Average model year and mileage of collateral


Consider an Average Purchase
1. On average, the car was purchased for $3,500 and sold for $6,500 with $1,500 down.

2. $5,000 financed at 22% over 24 months with a payment of $259.39 a month.

3. After 3 Monthly Payments to the dealer, the net balance on the loan is $4487.55

4. Which is sold for $.78 or $3,500.29.
   
Multiply this times the number of cars in the pool.

                                                      
1st Sale  $6500.00                                        
                                                                
Down Payment  $1500.00             
                                                                           
Finance   $5000.00                          
                                                                                            
3 Payments           $778.32                              
                                                              
Sell the Note For  $3500.29     
                                                                             
You get  $5778.61                                  
                                                                         
Cost of Car  $3500.00                              
                                                                                 
Profit  $2278.61    
                                                            
Sell the Note For  $3500.29     
                                                                              
You get  $5778.61                                  
                                                                         
Cost of Car  $3500.00                              
                                                                                         
Profit  $2278.61          
                                                                             
VERY COMPETITIVE PRICING !

▪ NO RECOURSE! (1st payment default only ! )

▪ ALL MAKES, MODELS, even TMU, and SALVAGE titles!

▪ANY PAYMENT FREQUENCY

▪ SMALL POOLS WELCOME! NO MAXIMUM LIMIT !

*STANDARD DEALER PURCHASE with 2 MO. SEASONING
(Payment must be current - less than 15 days late)   

                                                                                     
The Key To BHPH

We specialize in buying Auto Notes!

Are you an Auto Dealer or Finance Company that creates auto notes, buy here pay here auto paper?

Do you need CASH for inventory or for your business or personal use? Sell your auto notes, to increase your CASH flow and reduce your risk exposure.

Let us show you how to increase your CASH flow without creating new debtdon't wait for your customer to pay you off, Or total your car.  We can help you get the financial flexibility needed to compete in today's auto industry.
 
Underwriting and Stips
Most small used car dealers with good common sense, and a reasonable judge of character, can operate a successful Buy Here Pay Here ( BHPH ) operation without using underwriting criteria, or a specific stipulation ( stip ) list.

“However”, with out underwriting rules and a stip list, if you want to pass some of the decision responsibility over to another person, OR, you want to handle more volume, you’ll get in “EXPENSIVE” trouble “REAL” fast! Here’s how successful BHPH dealers and BHPH paper buyers know what to buy, and how much to pay.

Underwriting can be the trickiest because it is so subjective.

Here are some guidelines.

We’ll call your investment in the customer “Cash in Deal” or “CID”.

There are five basic areas to which you want to attach value, time in area, time at residence, time on job, income, and down payment commitment.

Attach a value to each of these and you will get a chart that rewards the, long time in area, more resident stable, long term job, high income, large down payment commitment customer with more CID.

Stipulations (Stips) are more important than ever because of, you guessed it, identity theft, not to mention deception. Your typical list of stips includes a valid drivers license, valid insurance, pay stub verifying their job (showing YTD income is best), copy of phone or cell phone bill (verifying a phone where the customer can be reached), proof of address (proving they live where they say they live), and of course, references (people who might be able to tell you where they are if they skip). You have “two” choices, collect the stips, hoping they will verify, while “your” car drives around. “Or”, verifying in advance (recommended).

Drivers license is usually easy, your state has a web site or phone number you can call to verify that the license is not suspended or revoked. Insurance is easy, just call the agent, make sure they actually paid for the policy and you are listed as the lien holder.

Read the pay stub, verify it’s the most recent and the income matches the application. Call the employer, verify they are still employed, job time, and if possible, income. This typically can be your biggest deal buster!

Verify the home phone bill is for the address listed on the customer’s application even if it’s in a different persons name. Cell phones should be in the customer’s name.

Proof of address needs to be a utility bill, or some other mail delivered by the postman, in the customer’s name, to the address the customer put on his application.

For references, get family first, with addresses, and phone numbers, be persistent! Get 10 or make sure 7 numbers work.

Cash flow is equally as important! It just makes smart business sense to have underwriting guidelines and do verifications before delivery, it “always” costs more later, in time, and money!!