Our Lending Process
A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property.
Hard money loans are typically issued by private investors or companies. Interest rates are typically higher than conventional commercial or residential property loans because of the higher risk and shorter duration of the loan. Most hard money loans are used for projects lasting from a few months to a few years.
* Hard Money Loan fees can range from 4-6 Points paid at closing and interest rates of 12-15% depending on the amount borrowed, term, etc.
Transactional Funding is a way to fund a transaction for a very short period at a much lower rate than a traditional hard money loan.
These transactions are also known as “A-B and B-C” transactions with party “A” being the seller; party “B” the investor; party “C” the end buyer of the property.
Transactional funding allows wholesalers of real estate to satisfy title company requirements for actual cash funding from all parties.
* Transactional Loan fees can range between 2-5 Points paid at closing and interest rates of 10-15% depending on the amount borrowed, term, etc.
In some cases, the low loan-to-values do not facilitate a loan sufficient to pay off the existing mortgage lender, for the hard money lender to be in first lien position.
Because a security interest in the property is the basis of making a hard money loan, the lender usually always requires the first lien position of the property.
As an alternative to a potential shortage of equity beneath the minimum lender Loan To Value guidelines, many hard money lender programs will allow a “Cross Lien” on another of the borrower’s properties.
The cross-collateralization of more than one property on a hard money loan transaction is also referred to as a “blanket mortgage”.
Not all homeowners have additional property to cross collateralize.
*Cross Collateral loan fees can range from 4-6 Points and interest rates of 12-15% depending on the amount borrowed, collateral, term, etc.
Landlord loans are for our experienced Veteran Landlord Investors who buy & hold investment properties. These loans are designed for landlords to assume as much cash flow as possible on their units.
The way it works is that we structure the deal so that at settlement the total interest & total monthly payments which work out to be like the amount of a commercial loan which usually requires 20%-30% down along with closing costs etc. are paid upfront in order to alleviate landlords of making monthly payments as they assume higher monthly cash flow and also lessens the loan costs by not having to service the loan on a monthly basis.
*Landlord loan fees can range from 4-6 Points and interest rates of 12-15% paid at closing and also depends on the amount borrowed, term, etc.