What are the terms of your loans?
For our Fix/Flip, New Construction, and Bridge loans, the typical term ranges from 1-6 months, with an average of 3.5 but depending on the project's size. Interest depends on the risk assessment at underwriting as well as lien position.
How fast can you close?
For our Fix/Flip, New Construction, and Bridge loans, we typically close within 2-3 weeks, but we can expedite the process if we have the appraisal, title, and other necessary documents in hand. We always say that we can only move as fast as you allow us! In other words, if we don't get the requested docs, we are halted. So the sooner we get them, the faster we can process your request!
What are your interest rates?
Interest rates vary based on the loan product, duration, experience, credit, and the overall deal.
Do you charge points (aka origination fee) like a typical mortgage and when do I pay them?
We typically charge 2-3 points on most deals, with the exact amount depending on your experience, credit, and loan type. These points are paid upfront at closing, along with your other associated closing costs.
What other fees do you charge for your loans?
Our lender's legal fee is $1,000, and there is a commitment fee of $995 plus a $40 wire fee. Each draw request incurs a draw inspection fee of $250.
Can I use my appraiser for the valuation of my property?
We use a vetted third-party AMC or appraiser for all properties we lend on. If you have a preferred appraiser, we can obtain their licence and examples of appraisals to consider adding them to our list of approved appraisers for future assessments.
Do you offer extensions if my loan goes beyond the loan maturity date?
If you need additional time and your loan is current with up-to-date payments and insurance, we're flexible to accommodate your situation. We offer extensions on a case-by-case basis, including options for 30 days- Couple of months, depending on your needs. Please note, extending the loan is subject to a 1-2 point extension fee.
Are you lending solely on the deal itself or do you look at my personal credit?
We evaluate both the deal and the borrower(s) in our assessment. The operator is a crucial part of the asset, as a good deal can be compromised by a problematic borrower. Our goal is to ensure that the deal is viable and that we have confidence in the borrower's ability to make timely payments, complete the project within the agreed term, and repay the loan as agreed.
Are your loans considered “full documentation” loans?
Our loans are categorised as "light doc" loans, focusing on the borrower's liquidity, creditworthiness, experience, and are deal specifics. We require proof of liquidity via bank statements and a stated income personal financial statement, but we do not require tax returns or traditional income verification.
What is your minimum credit score required for your loans?
For experienced investors, our minimum credit score requirement is 650. For newer investors the minimum credit score requirement is 680.
Do you run my credit for every deal and file I submit?
We only conduct a hard pull on active fix/flip, new construction, and bridge loans. The credit report from this pull can typically be used for subsequent deals for up to 3-6 months. After this period, we may request an updated credit report for upcoming projects.
What if I have a recent bankruptcy or foreclosure? Can I still get a loan with you?
We are unable to fund loans within 5 years of a recent bankruptcy or foreclosure.
How much liquidity do I need to have for one of your loans?
Depending on the investor's experience, we typically require 10-30% of the purchase price to be invested in the deal beyond the approved loan amount. Additionally, we ensure there are adequate funds available for closing costs, interest payments, and working capital before disbursing any draws.
Does the down payment I need to bring get better as I complete more projects?
Yes, Absolutely. our leverage (LTC) and the percentage of the project that the borrower needs to contribute (skin in the game) can be reduced as more deals are successfully completed. This is merit-based, and once you have completed 5-6+ projects, you can qualify for our highest leverage tier, which includes up to 90% of Purchase and 100% of Construction costs, with a maximum of 70% After Repair Loan-to-Value (ARLTV).
Do you count my wholesale transactions or projects I completed for other investors as deals completed?
Only fix/flips, new construction, or rental property purchases will count towards your experience with us. Wholesale deals and projects performed for other investors where you are not listed on the LLC or loan as a guarantor will not be counted.
Can I use unsecured lines of credit or other gap funding methods for the down payment and closing costs?
Yes, before closing, we ensure responsible sourcing of funds required for property acquisition and project completion to avoid any funding shortages. These funds must be transferred into a personal or business bank account prior to closing.
Do you upfront fund the construction budget?
We do not provide upfront funding for construction. Depending on your relationship with contractors, we reimburse for completed work. You can request a draw reimbursement as work progresses, which is contingent upon inspection verification.
How long does it take to get a draw reimbursement?
Typically, the draw reimbursement process takes about 3-5 business days. This timeline can be expedited with more frequent draws and ongoing deals. Delays may occur from the time we order the inspection to when the inspector schedules and coordinates payment, and sends the report to us for final review.
What states do you lend in?
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What is your minimum loan amount you will lend?
Our minimum loan size is typically $20,000. On a case-by-case basis unless is Transactional Lending such as double closing, earnest money deposit Etc.
Do you lend on rural properties?
Depending on the property location, we may be unable to lend if it is classified as rural. This is typically due to lower population density, which may make it difficult to obtain comparable property values within a reasonable distance.
Do you lend on commercial properties?
Our term and bridge loans are available for commercial properties, specifically 5+ unit multifamily and mixed-use properties where more than 50% of the space is residential and the property value exceeds $250,000. However, we do not provide loans for purely commercial or special use properties.
Do you lend on fire-damaged properties?
We do consider lending on fire-damaged properties, with a strong emphasis on the expertise and experience of the operator, as well as the condition of the property itself.
Do you lend to a personal name?
We are only able to extend loans to entities such as LLCs, S-Corps, C-Corps, and similar entities, as our loans are structured as commercial loans and cannot be issued to individuals. We can Not Coladeiras a prime residency.
Can you lend to a trust?
Lending on or refinancing trusts can be complex, but we evaluate each case individually based on the trust documents. We assess any challenges and determine if lending is feasible. In all cases, the trust must be irrevocable for us to consider providing financing.
Who orders the appraisal?
After you submit your completed application, an underwriter from our team will contact you to review the deal and the information provided, including financials and experience. Following the borrower interview call, if we agree to proceed, we will arrange for an appraisal through one of our vetted sources, either an AMC (Appraisal Management Company) or an approved appraiser. If you have an appraisal, you are welcome to share it with us and we may or may not use it at our discretion.
Do I order title and/or insurance?
If you have established relationships with a preferred title company and insurance broker, you can independently order their services after we complete the borrower interview. If you prefer recommendations, we can connect you with our trusted partners in each category. Simply provide us with the contact information for each vendor, and our team will include them on all correspondence moving forward.
Are you a direct lender?
We independently make all loan decisions for the loans we originate. We deploy our own funds for select projects when available and also manage multiple capital sources to ensure we offer the best options and flexibility for our borrowers.
Can you lend as a second lien position for seller financing?
Usually, for almost all our loans, we require being in the first and only lien position. If there is a seller holdback, we cannot lend unless we pay off the seller holdback lien. Afterward, we can refinance into a new loan where we are the sole and primary lien holder. Please ask us directly for any exceptions
Can you lend on specialised housing?
We could provide lending for specialised housing types such as bed and breakfasts, rooming homes, or hotels/motels because these properties are typically classified for commercial use on a per diem base
