OPTIONS THAT MATTER
If you are an investor looking to fund your short sales, REOs, residential, or commercial flips, then you know how difficult it is to find the perfect company. At Maico Direct, Inc. we are investors, so we know your dilemma. This is the reason we have developed our transactional funding program. Simply use our funds to flip your deals– you provide the approved end buyer. Our purchasing range is $10,000 to $100,000,000 per acquisition. It’s that easy. If you are ready to get funding, go to our transactional funding application now. Please note: transactional funding can only be used if conducting a simultaneous closing, or back-to-back closing.
BENIFITS OF WORKING WITH MAICODIRECT.COM
Did you know that lack of funding is the #1 cause of not closing on a deal? Don’t let that happen to you! We are dedicated in helping you fund your deals. Think of the endless possibilities… Give us a try, and not only will you save money, you will be able to have confidence in submitting your deals. Unlike other companies, we offer low rates, great customer service, and a genuine interest in making this the easiest part of your transaction.
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Simply have an approved end buyer in place, and we will provide you with transactional funding to close your deal. We can also provide you with a soft proof of funds letter to submit your offer to the seller.
HOW DOES TRANSACTIONAL FUNDING WORK?
1. Simply fill out our transactional funding application online or fax it in.
2. Send in required contracts.
3. Get your deal funded.
It’s that easy!
You may use our experienced title company to conduct your closing, or use your own. The choice is yours.
PLEASE FILL OUT INFO ON CONTACT PAGE FOR MORE INFO.
FAQ TRANSACTIONAL FUNDING AND LONG TERM FUNDING
What is the difference between the Maico Direct program and most other transactional funders?
There are two key differences:
1. Maico Direct makes an equity investment in the property as opposed to a loan. In this arrangement, Maico Direct has no recourse to the Investor for any losses.
2. Most transactional funders provide loans only for back to back transactions. The Maico Direct program allows up to 120+ days.
How much is the Maico Direct preferred profit allocation?
As discussed in detail in the Maico Direct requires a priority return on its equity investment in the property, which is the greater of $4,000 or the following percentages:
| Holding Period (Days)* | % of Capital Contribution |
| 0 to 1 | 3.5% |
| 2 to 5 | 4.50% |
| 6 to 15 | 5.5% |
| 16 to 25 | 7.5% |
| 26 to 35 | 8.50% |
| 36 to 45 | 9.50% |
| 46 to 60 | 10.50% |
| 61 to 95 | 12.50% |
| 96 to 120 | 20.50% |
| 120+ | See Section 8 of Agreement |
Besides its preferred profit allocations, are there any other fees from Maico Direct Inc.?
No.
How do I get started with Maico Direct Inc.?
The first step is to complete and submit the package to paul@maicodirect.com
Does Maico Direct perform a credit check?
No. As discussed above, Maico Direct Inc. is an equity investor in the property and not a lender. Maico Direct Inc. does perform a criminal background check on all principals to the Investor.
How long does Maico Direct Inc. take to review and approve the Investor Information Package?
Please allow us 10 business days, if you have not received any response by that time contact us immediately.
What Does Maico Direct Inc. Require to Invest in a Property Flip?
Maico Direct Inc. requires that you have the A to B and B to C transactions “lined up” using the proper forms and proper disclosures to all parties. The Investor then submits the proposed deal to Maico Direct Inc via the transaction worksheet along with all supporting documentation. Please see the bottom of the Transaction Worksheet for a list of the required supporting documents.
How much lead time does Maico Direct Inc require to invest in a property purchase?
We request that Investors provide a fully completed Transaction Worksheet at least 7 business days in advance. Back to back transactions require less time and we ask for at lease 3 business days in advance on these transactions, but the earlier the better to ensure a smooth process.
Are there any other significant deal requirements?
Yes. Depending on the anticipated holding period, Maico Direct Inc. requires a minimum gross profit spread between the purchase and resale price, and a minimum non-refundable deposit from Party C as outlined below:
| The Greater of: | The Greater of: | |||
| Holding Period (Days) | Min. Total % Profit | Min. Total$ Profit | Min. Party C % Deposit | Min. Party C$ Deposit |
| 0-15 | 15% | $15,000 | 5.0% | $5,000 |
| 16-30 | 20% | 15,000 | 5.0% | $5,000 |
| 31-60 | 25% | $18,000 | 5.0% | $5,000 |
| 61-95 | 30% | $20,000 | 6.0% | $7,000 |
| 96-120 | 35% | $25,000 | 7.0% | $7,000 |
Note - The percentages and amounts above are minimum guidelines only; Maico Direct Inc. is not obligated to invest in any property for any reason.
How Does Maico Direct Inc. Calculate the Gross Profit % Above?
The gross profit is the amount of profit the deal would make between the ABC cycle of transactions. There are many variations, but the following is a conceptual example that will apply to most situations using a $100,000 A-B purchase price and $130,000 B-C sale price:
A-B B-C
Contract price 100,000 130,000
Deposit by Party B (1,000)
Commissions paid by Seller (6%) NA (7,800)
Current year property taxes due from Seller (4,000) (5,000)
Seller Concessions NA (2,000)
Other closing costs to Buyer (1,000) NA
Other closing cost to Seller NA (2,000)
Capital Contribution 94,000
Net Cash to Investor / Maico Direct Inc 113,200
Profit Spread Available to Maico Direct Inc 19,200
Profit % (19,200 / 94,000) 20%
Does Maico Direct require itself to be listed as the purchaser / new owner in the A to B closing?
No. However, Maico Direct does require the Investor to execute a warranty deed to Maico Direct Inc. that is held in escrow by the Title Agent. Maico Direct has the right to record and take title to the property at any time, but it is not our intent to do so if the proposed purchase and resale of property are performed according to plan.
What happens if the subsequent sale (B to C transaction) does not occur or is significantly delayed?
This should be a rare occurrence, however, if for whatever reason the subsequent sale (B to C transaction) falls through, it is our expectation the Investor will re-market and sell the property at a substantial profit. However, as shown in the table above, the profit allocation to Maico Direct Inc. increases over time so it is in the Investor’s interest to resell the property as soon as possible.
If the original B to C transaction falls through, and the property is sold at a loss, will I owe Maico Direct any money?
No. However, if Maico Direct suffers a loss due to a fraud or misrepresentation by you, you will owe us for any deficiency and we will not be able to do business again.
Do I have to be incorporated?
Yes. It is in your interest to establish yourself as a corporation (generally less than a $150 in cost) to avoid personal liability.
Note – Maico Direct Inc. may enter transactions with individuals, but only in very unique and limited circumstances.
Who Chooses the Title Company?
Maico Direct Inc. reserves the right to choose the Title Company; however, we will consider using other title companies if they can demonstrate experience in short sales and have adequate E&O insurance. Maico Direct Inc. currently has relationships with and recommends the following:
- Clear Title America (“CTA”) for Florida and most other states.
- Lawyers Title / Par Escrow in California (“Lawyers”) for California, Nevada and Arizona.
What is the most common reason a B to C deals fall through?
It is our experience re-sales fail to close primarily due to:
1. Party C wasn’t fully underwritten by its lender and the financing falls through. This is usually due to a lack of appraisal, closing funds not verified and debt to income ratios not fully verified by lender.
2. Party C decides not to purchase the property and forfeits the deposit.
It is for the reason above that Maico Direct Inc. requires that Party C be fully underwritten by its lender with no contingencies and that a minimum non-refundable deposit is obtained.
Will Maico Direct Inc invest in property that needs re-hab?
No. However, we will allow for minor repair or replacement items such as new appliances or carpeting as may be required in the sale agreement to Party C. The Investor needs to fund these items and will be required to show sufficient funds to Maico Direct Inc for such items.
What is the maximum dollar amount Maico Direct Inc will fund?
Maico Direct Inc will fund up to $500,000 on holding period deals. Maico Direct Inc will also consider funding more than $500,000 on a case by case basis depending on the strength of the C buyer and will fund up to $1,000,000 on back to back, same day transactions.
good program