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FAQ

What is a Private Money loan?
  • Private Money Loans are asset-based loans that are usually used to finance short-term repairs and the acquisition of properties.
How is Private Money different from Banks?
  • Very often, Private Money Lenders can step in to provide funds where banks cannot.
How do I start the application process?
  • The best way is to fill in the information requested on the application. Please fill it out completely to speed up the process.
Will you lend on a property that I already own?
  • Yes, but only if the property is non-owner occupied.
Is there a down payment required?
  • Down payments are always required. The great news is that we can cross-collateralize.
What if I have bad credit or no credit at all?
  • Your credit report will be pulled for the loan review, but it is not a determining factor for loan approval. A high credit score may reduce your interest rate.
What types of property do you fund?
  • Non-owner-occupied residential property and commercial property.
What is your loan-to-value ratio?
  • Our loan-to-value ratio is 70%
What is the term of your loan?
  • The typical loan terms are between 3-18 months, and sometimes up to 2 years
What are your minimum and maximum loan amounts?
  • Our loan amounts start at $50,000 and up.
Will you lend money on a property with a lien?
  • Yes, the cost of the lien will be added into the closing costs.
Do you require an appraisal?
  • Yes, by one of our approved appraisers only.
Do you need an inspection?
  • Yes, our team will order all inspections.
Do you provide a letter of credit?
  • When you are pre-approved, we will give you a pre-approval letter.
Can the loan be made to an entity or company?
  • The loan can only be made to your entity.
Does the property need to be under contract before I apply for a loan?
  • We prefer that the property is under contract but will be happy to speak to you about your options if it’s not.
Do you lend money for rehab projects?
  • Yes, as long as the amount does not exceed our loan-to-value ratio of 70%.
How fast can I close?
  • The closing will take place within 10-14 working days after all required documentation is provided to us.
Can you provide funding for more than one loan at a time?
  • Absolutely.
In what areas will you lend?
  • For the right borrower and deal, we fund projects nationwide.
Can I get a Proof of Funds  Letter?
  • Absolutely. The best way is to fill in the information requested on the application.   Please fill it out completely to speed up the process.
What are your closing costs?
  • Closing costs vary and are between 5%-7%. Assuming our loan-to-value ratio is not exceeded, these costs will be added to the loan.
How much is your interest rate? Do you charge points?
  • Interest rates are 12-14% and 3-6 points.
Is there an application fee?
  • Yes, there is a $250 application fee. When you repay the loan, we will refund the application fee.