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Logic-Based Lending

What is Logic-Based Lending?

This is not as complicated as it sounds. We review each deal individually to make sure the deal makes sense. We want to make sure it will be profitable for you and will inspire and excite a Private Money Lender to say YES.

Logic Based Lending revolves around two main questions:

  • How is the real estate investor going to make money on this deal?
  • Where is the monthly debt service coming from?

The real estate investor’s loan request and accompanying project package must outline and support a believable outcome for their exit strategy. Whether this is a successful wholesale, fix and flip, or buy and hold with a positive cash flow, the real estate investor must show the whole plan has been evaluated.

We have established relationships with investor(s) and investor groups based on sound underwriting practices for their protection.

Nova Money Lenders successful deal underwriting approval is based on a priority of:

  • As-Is value
  • Potential value after the deal
  • Reserves to pay debt service
  • Experience of successfully completing similar projects in the recent past

If it appears the real estate investor’s experience is not quite where it needs to be, our next move is to
evaluate other compensating factors to achieve loan approval,  including:

  • Credit score
  • Employment/earnings history