What are the terms of your loans?

For our Fix/Flip, New Construction, and Bridge our typical term is 12-18 months depending on the project size. For our DSCR rental loans the term is 30 years with varying options for prepayment penalty and ARM’s with interest only periods if they are desired.

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How fast can you close?

For our Fix/Flip, New Construction, and Bridge we will close typically in 2-3 weeks but can close faster with appraisal, title, and other necessary docs in hand. Our Rental DSCR can close in 4-5 weeks. We can close quicker with above-average response times, great organization, and preparation.

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What are your interest rates?

Depending on the loan product and duration the rates will vary based on experience, credit, and the overall deal. For our Fix/Flip, New Construction, and Bridge rates are currently between 10-12%. Rental DSCR are between 7.5-9.5%

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Do you charge points (aka origination fee) like a typical mortgage and when do I pay them?

We charge 2-3 points on most deals and are dependent on the experience, credit, and loan type. The points are paid up front at closing with your other associated closing costs.

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What other fees do you charge for your loans?

Our lender’s legal fee is $1000 and the commitment fee is $995 and a $40 wire fee. For each draw request the draw inspection fee is $250.

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Can I use my own appraiser for the valuation on my property?

We hire a vetted third party AMC or appraiser for all of our properties we are lending on. If you have a requested appraiser we can get their license, examples of appraisals, and see if we can get them added on our list of approved appraisers for future appraisals.

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Do you offer extensions if my loan goes beyond the loan maturity date? 

We will work with you if you need additional time and the loan is current and up to date with payments and the insurance is current. We offer on a case by case basis 30 day, 3 month, and 6 month extensions depending on the situation. When extending the loan it is subject to a 1-2 point extension fee.

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Do you have prepayment penalties for paying off the loan early?

For our Fix/Flip, New Construction, and Bridge loans we do not have any prepayment penalties. Our Rental DSCR loans have varying prepayment penalties that can be chosen from 1-5 years.

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Are you lending solely on the deal itself or do you look at my personal credit?

We are looking at both the deal and the borrower(s). Part of the asset in the deal is the operator and a good deal can be spoiled by a bad borrower. We want to understand if the deal makes sense and that we are comfortable that the borrower will make their payments on time, complete the project within the term period, and return the money to us.

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Are your loans considered “full documentation” loans? 

Our loans are considered “light doc” loans where we are looking at the liquidity, creditworthiness, experience of the borrower, and deal specifics. We require proof of liquidity through bank statements and a stated income personal financial statement but we are not looking at tax returns and income verification.

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What is your minimum credit score required for your loans?

For experienced investors our minimum is 650 and for newer investors and our rental DSCR loans 680 is our minimum. 

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Do you run my credit for every deal and file I submit?

We only perform a hard pull on live fix/flip, new construction, and bridge loans. That credit report can be used for subsequent deals usually up to 3-6 months and after that time we may request to have an updated credit report on file for upcoming projects.

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What if I have a recent bankruptcy or foreclosure? Can I still get a loan with you?

We cannot fund within 5 years of a recent bankruptcy or foreclosure. Ask about our loan sponsorship program and we may be able to help.

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How much liquidity do I need to have for one of your loans?

Depending on experience we require for 10-30% of the purchase price for money invested in the deal that is not covered by the approved loan amount. In addition, we look to see there is enough money available for closing costs, interest payments, and working capital before draws are paid.

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Does the down payment I need to bring get better as I complete more projects?

Yes. Our leverages (LTC) and/or the percentage of the project that is needed to be brought into the deal (skin in the game) by the borrower will be lowered as more deals are completed. It is merit based and once you have completed 6+ projects you can unlock our highest leverage tier of 90% of Purchase and 100% of Construction up to a maximum of 70% ARLTV

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