What is the difference between a real estate investment loan (private money) and traditional bank loans?

Conventional lenders and banks generally are governed with more guidelines and red tape.  Their lending criteria can make it nearly impossible to borrow money if a borrower has complex tax returns, spotty credit and/or difficult to document down payment funds.Private money lenders specialize in loans against these types of distressed situations. Private money loans are usually short term and have higher interest rates, BUT can close quickly and with ease when purchasing within 70% loan to value.

What is the loan term?

Our loans are generally 3, 6, and 12 months in duration. These loans are often renewable for a fee.

What are your rates and fees?

Our rates and fees will vary depending on the quality of the deal and your personal financial situation, but the interest rate will range between 8.99% and 14.99% and the origination fees will range from 2% to 5%. Each loan will also have the following fees:

  • Processing Fee $995
  • Flood Cert. Fee $25
  • Wire Fee $50
  • Appraisal Fee $325-500
  • Doc Fee- $400-550
  • *All Fees are ESTIMATED
Are there any fees that are paid up front?

Our rates and fees will vary depending several loan characteristics.  The general interest rate will range between 8.99% and 13.99%.  Our origination fees range from 1.5% to 5%. Origination fees are paid at closing.  Usually, the only fee collected up front and is paid regardless of the loan closing, is the appraisal fee paid directly to the appraisal company.

How do I know how much to pay for a property? "

The amount you pay for a property is up to you.  We recommend that you order an appraisal immediately after a purchase contract is signed.

I found a property, but I am unsure about the after repaired value or repair costs. Can you help me determine if it is a good deal?

Yes. If you fill out our online application we will give you our opinion of value and an estimate of what we can lend against the property usually within 24 hours (and we will do this free of charge!)

How much can I borrow?

This again will vary some depending on the loan characteristics and your personal financial situation, but we will generally lend up to 65% of the of the property value.  At this time, please call or email for the latest minimum and maximum loan amount.

Will you also finance the repairs?

We are not the best lender to finance repairs.  This would be considered on a case by case basis.

What are your credit requirements?

We will look at your credit; however, it is only one aspect of the approval process and we are much more concerned with the property itself and the amount of cash you have available to handle the project. We do not have a minimum credit score requirement; however, we would look very closely at how you have paid your real estate debts in the past.

How much cash do I need to bring to closing?

You would need your down payment (usually 35% of the sales price) plus closing related fees.  We would provide our closing related fees at the beginning of the process via a term sheet. If the house appraises for less than the sales price, we would consider the “value” of the appraisal and base down payment from this appraised value.  If this is a refinance loan request, we would base our new loan amount from an appraised value and often times (granted there is enough equity in the house) our borrowers do not need to bring cash to closing.

Do you loan on rental property?

Yes. You can get approved for longer term financing and we may have additional requirements.

Do you loan on commercial property?

Yes.  The rates and terms may be different form our other loans. Please contact us for details.

Do you loan on multi-family properties?

Yes.  The rates and terms may be different form our other loans. Please contact us for details.