Edwin Epperson, CEO of Spearson Investment Group briefly describes what encompass's our terms and guidelines for real estate investors

The number one question on most real estate investors mind is, “What are your terms, and how much do your loans cost?”  Unfortunately we cannot tell you what our terms are specifically for your deal here.  What we will attempt to do is layout what we will need to see before making a decision to fund a deal you may bring.  This will help you better prepare, present and structure your deal so that you are confident your deal will be funded when you present it.



While there are fix and flippers for every type of property we prefer properties in solid neighborhoods, which have more owner occupied homes than rentals, very low crime rates, and are in the path of progress for that local town or city.  We love to lend on properties that by funding the purchase and rehab we are contributing to the local economy and growth in the region.


We absolutely will not budge on our loan to value.  Our loan to value or LTV, is determined by an appraisal and or a Brokers Price Opinion .  Depending on how often we have worked together you can get funding from 70% to 90% of purchase price.  While Comparable Market Analysis, CMA’s, and your own valuation may seem adequate to you, for us and our partner investors, an appraisal is the time tested method of determining ARV.


While risk is relative to a degree, we take very seriously the quality of our borrower and their experience.  Our belief, which has been proven through experience, tells us that an excellent project with a mediocre borrower will yield a sub-par product.  While a sup-par property with an excellent borrower can yield phenomenal results.  We are focused on relationships and hope to build a relationship with you.


One question we receive all the time is what are we looking for in rehabbers and builders.  The first and foremost is experience.  Now this is assuming you are the general contractor or GC.  If not, do not worry.  You will want to read the following section about your team.  As you are the borrower, we want to see that you and/or your team have plenty of experience.  Any less than 5 deals, or lack of proof of those deals can affect your rates and how much funding you can receive.  We understand that if you are new, then trying to start out in real estate investing can be tough.  We strive to create win-win relationships and we will come along side of you to help you gain the experience needed in this business to propel your investments.  





Who you have on your team speaks volumes to you as an individual and our ability to work together.  We value your abilities therefore we value your team and your ability to surround yourself with team members who want to see you excel.  Before funding any project you bring to us, we will require ample time to vet you and your team, so it is imperative to build a solid team that brings experience and adds value to your decision’s.  Remember, you can have zero experience, yet have a superb team in place and we will fund projects with you all day long.  However the opposite is true, should you have exceedingly vast experience yet have a sub-par team, and we will forego funding any deals that you bring. 

This is probably the most important aspect of any deal barring your team qualifications.  Our deal specifications are not hard to meet.  We simply ensure that we have a well working knowledge of the rehabber, their experience and the team they have in place.  It is how we protect our partner investors and ourselves from many different types of risk.  Let’s give a brief overview of our deal requirements:

·       We only lend to entity’s, therefore the loan will be a business purpose loan

·       We only lend on non-owner occupied properties.  You will have to sign a disclosure stating you will not live in the property

·       Our CLTV will not exceed a maximum of 75% including interest in reserve.

·       Our borrowers are required to bring something to the table, known as “skin in the game”.  This ensures you have something to loose should you walk from the project

·       Properties we lend on must not be in war zones (High crime rate areas)

·       Single family residences and multi family.  We will consider commercial projects on a deal by deal basis with only our most experienced borrowers

With our Joint Venture Funding, also known as our V.E.S.T'd Members, closing cost can be wrapped into loan, minimizing your out of pocket cash.  To find out more how you can utilize this funding solution please go to our Joint Venture Funding Solution HERE.