FAQs

General Questions

A private lender is an individual who lends out their own capital. Typically, this is not their day job and they lend their own funds as opportunities present themselves. A hard money lender is one who operates a business lending to clients on a daily basis and actively markets and expands their business. Hard money lenders typically raise capital by bringing in investors so they can fund loans in volume, or by leveraging institutional capital. Most true hard money lenders do not lend their own personal capital.
No. We all have to start somewhere, right? That’s the beauty of private lending. If you can prove to us that you are strong in other areas (credit, liquidity, subject property), we can look past the lack of experience.
As a lender, this is always a tough question to answer and we believe most lenders mislead potential clients with their response. Instead of saying we can close in 48 hours, or in 7-10 days, we believe the proper answer is, “we can typically fund as soon as we have a valuation on the property, clear title work, and all of the required documents from the borrower”. If a lender is saying they can close in 48 hours, this might be true, but what they are not telling you is that they can close within 48 hours of receiving all of the items above.

Depends, and rarely. We focus on residential properties. However, if the right commercial property comes along and the deal makes sense, we will take a look at it.

  • Rehab Loan (Down Payment Option)
  • New Construction Loan (Down Payment Option)
  • Rehab Loan (100% Financing)*
  • New Construction Loan (100% Financing)*
  • 30 Year Rental Loan
    • Purchase
    • Rate and Term Refinance
    • Cash Out Refinance
  • 3 Year Bridge Loan
  • Transactional Funding
Yes. We are capable of funding all our products, except our 100% financing options, nationwide.

No. We only fund 1st position loans.

Rehab Loan Questions

We are minimalists at heart. This is what we need to look at a rehab loan. No more, no less. We can offer preliminary terms based on the following 8 items:
  • Address
  • Purchase Price
  • As Is Value
  • Renovation Budget
  • After Repair Value
  • Client’s credit score
  • Experience: How many fix and flips have you completed in the last 36 months?
  • Liquidity: How much cash on hand do you have today?

We average about 2 points.

Construction holdbacks are funds that we approve to be used to renovate the project. As our client, you will need to float a portion of the renovation and then order a draw inspection. We send an inspector out to look at the project. They then submit a report to us based on their findings. We wire the funds to you. Construction holdbacks are always reimbursements.

Sometimes 20%, sometimes none. It all depends on the deal. If that sounds like a broad answer, that’s because it is. Every deal is different. Let us look at deal and understand your needs and see if we can craft something that works for YOU.

100% financing loans are written for 6 months, down payment loans are written for 12 months

We typically like to order a BPO (broker’s price opinion) on loan amounts under $500,000 and appraisals on loans over $500,000. We can sometimes comp properties in house if we have to.

New Construction Loan Questions

We are minimalists at heart. This is what we need to look at a construction loan. No more, no less. We can offer preliminary terms based on the following 8 items:
  • Address
  • Purchase Price
  • As Is Value (or lot value)
  • Build Budget
  • Completed Value
  • Client’s credit score
  • Experience: How many new construction projects have you completed in the last 36 months?
  • Liquidity: How much cash on hand do you have today?

Anywhere from no down payment up to 15% of the total costs.

We typically write new construction anywhere from 6-18 months. It depends on the project size.

We typically like to order a BPO (broker’s price opinion) on loan amounts under $500,000 and appraisals on loans over $500,000. We can sometimes comp properties in house if we have to.

It is preferred. To get into our down payment option with lower interest rates, a minimum of 3 builds in the last 36 months is required. We do not always require experience on our 100% financing option.

We average about 2 points.

Construction holdbacks are funds that we approve to be used to renovate the project. As our client, you will need to float a portion of the renovation and then order a draw inspection. We send an inspector out to look at the project. They then submit a report to us based on their findings. We wire the funds to you. Construction holdbacks are always reimbursements.

30 Year Rental Loan Questions

  • Purchase
  • Rate and Term Refinance
  • Cash Out Refinance
  • Delayed Financing
  • Up to 80% on Purchases
  • Rate and Term Refinance
  • Delayed Financing
  • Up to 75% on Cash Out Refinances

On average around 30 days. The main slow down in our rental loans is waiting on the appraisal.

We typically charge points (anywhere from 0-2 points) and a $1,495 processing/legal fee.

Our rental loans are DSCR (Debt Service Coverage Ratio) loans. The income and expenses matter. In fact, they are the main driving force behind our terms. We want to ensure you are cash flowing. Why have a rental property if it’s not profitable?

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