This is Pine Financial Group’s lending process, showing you, the investor, how we manage your private money investment. Every loan that Pine Financial Group makes goes through this process.
- Collect Borrower Financials
- Assuming we have not worked with a borrower in the past, the initial step is to prequalify them. This consists of collecting some personal information as well as a personal financial statement. Assuming we are comfortable working together, we will issue a loan commitment letter. This letter helps our client prove that they have some financial backing.
- Get Contract and Scope of Work (with budget)
- As soon our client receives an accepted offer they will send us the contract or purchase agreement. We also require that they send us an executive summary for what work will be done to the property, as well as the budget associated with their plan. It is essential for us to have a clear understanding of the fix and flippers rehab plan and costs associated with the plan.
- Order Appraisal
- Knowing the terms of the deal from the contract and a clear picture of the plan to rehabilitate the property, one of Pine Financials’ approved appraisers can get a value of the property. This is a subject to appraisal, meaning the value is subject to the planned repairs.
- Order Insurance
- There are two insurance policies that we require. First, we need to be sure that the property itself is insured so we can recoup our loan principal balance if there is a loss to the property, or that there are insurance proceeds to make repairs if damaged. We also require a lender title insurance policy. This policy covers several items that are important to us. We want to be sure that our client does in fact have title, or will have, and is able to sign a deed of trust or mortgage, creating a lien that secures our loan. It also covers our lien to be sure it is recorded properly and that we are in the senior loan position.
- Build and Underwrite File
- As we are waiting for insurance and the appraisal, we will collect a full file from our client who will be borrowing the money. This includes tax returns, bank statements, photo identification, credit report and disclosures. We want to verify all that was disclosed to us with our pre-approval process is in fact true. Once the full file is built and the appraisal is in, we underwrite the loan and make the final decision to make the loan or not. Our underwriting guidelines are part of the investor prospectus that you will receive if you choose to consider us as an investment option.
- Coordinate Closing
- This is a fairly simple process where we work with all the players in the transaction to coordinate the closing. This includes making sure insurance is in place and coordinating the closing services with the title or escrow company. We will then send our loans docs for execution and finally send our wire to fund the loan.
- Service Loan
- Once the loan is closed the title company will record our deed of trust or mortgage and send us our loan package, which includes the original note. We lock the original note in our fireproof safe in our office and input the loan into our loan servicing software. This software helps us stay on top of payments and repair draws. From here, we collect and disperse payments, create payoff statements and lien releases, and handle any problems that could come up with our borrower or the loan. Once the project is rehabbed and sold, we get paid back and the process starts again.
Invest with Pine Financial Group
For more information on investing in our Elite Opportunity Fund, please complete the following Intake Form and we will be in touch.
THE UNSECURED PROMISSORY NOTES (“NOTES”) ARE BEING OFFERED ONLY IN THE STATES OF COLORADO AND MINNESOTA. NO NOTES WILL BE SOLD WITHOUT PROPER AUTHORIZATION. THESE NOTES ARE NOT FDIC INSURED. THIS ANNOUNCEMENT IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. THIS OFFERING IS MADE BY PROSPECTUS ONLY. AN OFFERING CIRCULAR CAN BE REQUESTED BY CONTACTING THE COMPANY REPRESENTATIVE, MR. KEVIN AMOLSCH AT (303) 835-4445.
THE NOTES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT DETERMINED THE ACCURACY, ADEQUACY, TRUTHFULNESS, OR COMPLETENESS OF THIS DOCUMENT AND HAVE NOT PASSED UPON THE MERIT OR VALUE OF THE NOTES, OR APPROVED, DISAPPROVED OR ENDORSED THE OFFERING. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF PINE FINANCIAL GROUP, INC. AND THE TERMS OF THE OFFERING, INCLUDING THE DISCLOSURE, MERITS AND RISKS INVOLVED. PFG FUND III, LLC HAS NO OPERATIONS AND OWNS NO PROPERTIES, THE COMPANY MAY NOT BE ABLE TO FUND SUCH INTEREST PAYMENTS, IN ADDITION INVESTORS COULD LOSE THEIR ENTIRE INVESTMENT. IF PFG FUND III, LLC CANNOT GENERATE SUFFICIENT REVENUE AND CEASE OPERATIONS, YOU MAY LOSE YOUR ENTIRE INVESTMENT.