Common Borrower Questions
- What is a hard money loan?
- Why use hard money?
- Do you make loans across the country?
- Do you make loans commercial properties?
- Do you lend on properties located in a flood zone?
- Do I need a property identified in order to apply?
- Do I have to be an experienced investor to qualify?
- How quick can you close and fund my deal?
Q. What is a hard money loan?
A. The true definition of a hard money loan is an asset based loan. That means the loan is based on the equity of the property only. However, there are very few truly asset based lenders any longer. Most lenders including us will want the borrower to qualify for the loan. However, this does not mean we have the same qualifications as a traditional lender.
Q. Why use hard money?
A. Using hard money or private money allows investors to get funding quickly and without having to jump through all of the hoops a traditional lender requires.
Q. Do you make loans across the country?
A. Yes! Our focus is to make loans across the country.
Q. Do you make loans on commercial properties?
A. We typically lend on residential properties up to 4 units however if you have a commercial property and you are an experienced investor that has already invested in multiple commercial properties, we will be glad to talk to you about a commercial loan.
Q. Do you lend on properties located in a flood zone?
A. Yes, however we require a one year prepaid flood insurance policy in place at the time of closing.
Q. Do I need a property identified in order to apply?
A. No, in fact we prefer to have you prequalified in advance. That way you can make offers and negotiate your next property knowing that you have been approved for funding in advance.
Q. Do I have to be an experienced investor to qualify?
A. We primarily make loans to experienced investors, however, we would be glad talk to you to see if you qualify even if you are a new investor.
Q. How fast can you close and fund my deal?
A. Moving the money and funding is never the issue. What typically delays a deal from closing is obtaining the information we need from our borrower such as obtaining a 3rd party appraisal, clear title and/or some other item(s) from the loan package checklist. Once we have what we need, and we’ve got the clear to close, we fund within 5 days depending on the closing attorneys schedule.