Faqs
1. How does the program work?
We loan short-term funds to real estate investors to purchase and rehab real estate. These loans are usually for 6-12 months
in length. Our strength is that we can often fund quickly, typically within 72 hours of receiving the final docs from the title company. Hard Money is available for adequately collateralized loans on single-family residential houses and other Real Property including commercial projects.
2. What is the interest rate?
The rate is generally between 12% & 14% interest. These areinterest-only loans and are payable monthly by ACH electronic transfer.
3. What Loan-to-Value are you looking for?
Typically a loan does not exceed 65% of the after-repaired-value (ARV).
4. Can you extend the length of the loan?
We generally write the notes for 6-12 months. If you are in good standing the loan may be renewed for as much as an additional 6 months, at our discretion.
5. Will you also fund repair money?
Yes. We can fund up to 100% of the repairs. For this, we require a detailed Scope of Work And General Contractor's Bid to be included with the application. (create hyperlinks to those forms) Once approved, these payments will be made as the work is completed and inspected. We do not pay in advance for any work.
6. Does my credit report really matter?
Although we are basing the majority of the loan on the value of the property, we want to ensure that our loan is paid in full at the time of the term. We do not lend money for the sake of getting a property back. We wish to be your source of financing for this and other real estate projects. That being said, we also require that our borrowers to complete a credit report score so we can make a final decision on the loan and its rate.
7. How do you decide how much to loan?
Typical loan range from $50,000 to $150,000. All loans are considered on a case-by-case basis. Minimum ARV (after repair value) is $100,000
8. What areas do you loan in?
We loan primarily in Central Texas – including Austin, Bartlett, Buda , Cedar Park, Copperas Cove, Elgin, Florence, Georgetown, Harker Heights, Killeen, Kyle, Lakeway, Leander, Liberty Hill and Round Rock.
9. Do I need an appraisal?
Yes, we require "as-is" & "as repaired" appraisals from one of our "approved" appraisers.
10. Do you require inspections?
Yes, we require inspections including the interior before funding and before a repair draw to ensure the work is completed in a satisfactory manner.
11. How much money will I need to put down?
Typically a borrower will bring 8% - 10% to closing, which would include such things as: Points, insurance, Per Diem Interest and, Doc Prep & Title Fees. We want to be sure that you have sufficient funds and resources to finish the repairs and cover the costs of the loan plus any unforeseen problems, additional repair/remodel costs, bad weather, or delays which can set you back more than originally planned.
12. What are the costs for a loan? All loans will require at-least a Title Policy, Insurance, Inspection, "As-Is" and "As Repaired" Appraisals & Flood Certificate as well as additional fees mentioned in the loan process section. (create a link here)
13. How long does it take to fund? We can fund as-soon-as we have the appraisal, proof of insurance, a title policy, and a letter from the title company that they will follow our closing instructions.
After submitting your Loan Application, you can expect a preliminary answer within 1-2 business days and funding within 48-72 hours of receiving the information we need from the title company. A typical loan usually takes 1 - 2 weeks from application to closing if all paperwork is done in a timely manner.
14. How many loans can I have opened at any one time?
Provided you are current on all of your loans and have a good track record with us, there are no limits.
15. Will you finance commercial properties?
Yes, but only on a case-by-case basis.
16. Will you multi-family housing?
Yes, we finance apartment buildings however understand that it will take us longer to get our due diligence done.
17. Do you loan on rental property?
Yes. However, you will need to have the property refinanced when the term of our loan ends.
18. Do you do re-finances?
Yes we do. Let us know your specific circumstances.
19. Do you loan on rural property?
Not usually. Exceptions can be made on occasion only on a case-by-case basis.
20. Do you allow interest to be deferred to the end of the loan?
No. Our programs have interest payable monthly. Points can be deferred in certain situations.
21. Do you require a survey?
Yes. We will accept an existing survey if there have not been any structural changes.
22. Do you lend on properties in the flood zone?
Yes. However the Max LTARV is 60% and it is on a case-by-case basis.
23. How do we get started?
Visit our page for Borrowers and complete the required forms.
