FAQ

A private money lender is a non-traditional lender that provides short-term loans to borrowers. Private money lenders are typically more flexible than traditional lenders, and they often have faster approval processes and quicker access to funds.

Private money lenders typically make decisions based on the value of the property or project being financed, rather than the borrower’s credit score. Private money lenders may also consider the borrower’s experience in the industry and their track record of success.

Private money lenders offer a variety of loan types, including fix and flip loans, bridge loans, construction loans, refinance loans, land development loans, commercial loans, hard money rehab loans, hard money equity loans, and investment property loans.

Fees vary depending on the type of loan and the lender. Generally, private money lenders charge higher interest rates than traditional lenders, but they may also offer more flexible repayment terms. It is important to compare

Yes, we do require our borrowers to have some cash to settle, pay interest over the course of the loan and be able to deal with cost overruns with the rehab project.

Having experience is very helpful but we do lend to first time borrowers.

Fill out an application or call or email us with a basic deal summary. We will review and call you back if you email or begin the conversation immediately if you call. We will listen to what you are looking for from a lender. We will then ask you some questions about the profitability of your deal, your experience, the value of your real estate asset, available cash liquidity and your payoff plan for our loan. We will tell you approximately how much money we think we can lend to you and at what cost. We will also tell you what the process is to close our loan and all the associated costs.

If we think there is a viable deal, we will ask you if we should order an appraisal for you. The first cost you will incur is the appraisal cost (paid directly to the appraiser) which varies with the type and size of the property. You will not be asked for any money from us until we send you a term sheet outlining the entire deal structure and all deal costs.

We do not require any initial paperwork, however it is very helpful to us if you provide a loan application and a deal summary. Even better if you also have a purchase contract and a proposed scope of work. And better still if you also can provide us with some value comparisons for the target property.

We offer a one-year loan that is interest only until maturity and no prepayment penalty. Learn more about our loan programs.

No, we only lend to some kind of entity – LLC or Corporation. We can assist in setting up your LLC if you need help.

No, we only lend to investors. All of our loans must be non-owner-occupied.

Yes, in certain circumstances we will take a 2nd position. Speak with one of our loan officers for more details.

Yes, but only to experienced contractors or builders.

We are a direct lender with control of our own funds and decision making.

Within 24 hours if the submission is complete.

Yes, but it depends upon the particular circumstances of the loan and individual circumstances of the borrower.

We do not have set income requirements for the borrower, but the borrower must be able to demonstrate the ability to pay scheduled interest.

We do not have a minimum credit score, however, we do examine our borrower’s credit, and look at payment patterns. If your credit is poor we will look for other parts of the deal that make it safer for us.

Yes, but only if you do not live in the house and have no intention of ever living in the house.

No, we lend 80-85% of purchase and rehab costs up to a maximum of 60%-65% of after rehab value (ARV).

Yes. But we examine carefully your scope of work and draw schedule.

Yes. But we examine carefully your scope of work and draw schedule.

We concentrate on both single and multi-family residential real estate. We also lend on mixed use commercial properties with a residential component.

We do not lend on primary residences, co-ops, raw land, mobile homes, or extremely rural properties. We lend when we can value the asset with a high level of confidence.