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How long does it take to get funded? +
Due to the Dodd Frank Act going into effect October 3rd, 2015, we cannot fund properties in less than 7 days. 3 days is required to receive documents by email and 3 days to review. You can expect anywhere from 10 days to 2 weeks to receive funds upon approval of documentation.
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Where do you loan money? +
Currently we only fund properties in the Texas and Oklahoma areas. We are based in Dallas, so we can support only those areas for now. We may expand in the future to the full 5 state areas but for now we are limited.
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Do you do long-term loans like a mortgage company? +
No. As private investors, we only loan funds up to 12 months to maintain a level of liquidity. If your project requires more than 12 months to complete, you can discuss this with us. If you're looking for buy and hold financing for rental properties, then you can lend from us up to 12 months but are required to secure other financing for longer term. This is to protect you, the landlord, so your profit margins are higher due to lower conventional financing as apposed to higher private money financing.
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Why are your rates so much higher than banks? +
We are a private lender with private money. We take risks that banks ordinarily would not and therefore charge a higher rate for the use of our funds. You will find that although the funds may cost more, it is less expensive than having a venture partner to finance your project. Also, as your private lending source, you avoid the difficulties of securing a loan through a bank as your loan is not dependent on your credit score.
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Do you make personal loans? +
No. We only make loans secured by Real Estate.
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Will you finance commercial properties or apartments? +
We finance single family homes, 2 - 4 unit properties, and in some cases, commercial properties.
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Is my credit a factor in getting a loan? +
No. However, we do like to see at least a 625 FICO score but that is not the driving force behind our decision to lend money. We secure funding on properties by obtaining a First (1st) position on the property being funded. We will not fund as 2nd position.
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What's the difference between LTV and ARV? +
LTV is Loan to Value and is what we base our funding against as we do not know what the true value of a home is once updates have been completed. ARV is After Repair Value. This is the value of the home once all the repairs and updates have been completed and the property has been appraised.
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What's the difference between Hard Money and Private Money? +
Just like Private Money loans, Hard Money loans secure the funding with the property and not your credit score. However, hard money doesn't care about your FICO score and because of that risk, will charge points up front and higher interest. Whereas, Private lenders do look at your score but it's not a major factor in approval. Private lenders typically have less available cash to lend than do Hard money lenders. Only consider Hard Money if you've exhausted all your financing options as you'll pay much more.
