Apply2019-10-26T05:25:19-05:00

APPLY

COMMERCIAL FUNDING APPLICATION

NOTE: If you prefer, you may click here to download the PDF version of this application form, and email it to us after you complete it.

TITLE VIII of the CIVIL RIGHTS ACT of 1966 makes discrimination based on race, color, religion, sex, or national origin illegal in connection with the rental of most housing. The Federal agency which administers compliance with this law concerning this company is the Department of Housing & Urban Development located at 1100 Commerce Street, Dallas TX, 75202, and the Department of Housing & Urban Development located at 1371 Peachtree Street N.E., Atlanta GA, 30309.
EQUAL CREDIT OPPORTUNITY ACT: The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of sex or marital status. The Federal agency which administers compliance with concerning this company is the Equal Credit Opportunity, Federal Trade Commission in Washington DC, 20580.

NOTE: If you prefer, you may click here to download the PDF version of this application form, and email it to us after you complete it.

FREQUENTLY ASKED QUESTIONS

Why can’t I get a loan from a bank for my real estate investment?2019-09-21T21:29:07-05:00

Banks can be difficult to work with because they don’t like to lend on a number of common real estate investments, such as land development, flips, rehabs, and more. Basically, it’s tough to get a bank loan for any investment property that doesn’t generate cashflow from rent. Hard money lenders came into existence specifically to provide funding for real estate investments that banks won’t touch.

Aside from that, bank loan approvals are extremely restrictive and based only on the current as-is value of the property, which doesn’t always work very well for investment properties that are being purchased especially for the purpose of renovation and resale.

What’s the difference between getting a hard money loan from a private lender versus an institutional lender?2019-09-21T21:35:09-05:00

The biggest difference boils down to the information they use to make their lending decisions. Institutional lenders are typically “hard equity lenders”, meaning they make their lending decisions based largely on the property itself. Alternatively, private lenders make their lending decisions based on whatever factors they see fit, including nearly any aspect of your life, any component of the investment project, or a combination of both.

As such, private lenders tend to operate as “relationship lenders”, because their relationship with the borrower often factors into their decision. Essentially, private lenders have the freedom to choose to lend their money to whomever they want, but they typically make their decisions based on indicators like the borrower’s experience, income, capital, credit, and other personal or professional credentials, while also factoring the property into consideration as well.

These two very different methods of determining “worthy” borrowers result in other key differences as well. Most institutional lenders require inspections, surveys, and appraisals, because they are using the property as their deciding factor. These additional steps are costly, but they are also time-consuming and can cause a myriad of problems in a real estate investment transaction.

Further differences could be seen as part of the overall borrowing experience; a borrower will never get the chance to negotiate with the true decision-maker of a lending institution, but a borrower can sit face to face with a private lender almost anytime! Plus, even if the transaction goes silky smooth, funding through traditional institutions takes at least 15 days, and most often takes 30 to 45 days. Meanwhile, we can fund a loan in as little as 7 days!

What qualities are hard money lenders looking for when qualifying a potential borrower?2019-09-21T21:29:06-05:00

There’s no right or wrong answer here, but most private hard money lenders are evaluating the borrower more so than the investment property.

Most private real estate investment lenders typically want to lend to a borrower who is experienced and savvy in the field; someone who makes good purchasing decisions and who completes improvement projects for resale as quickly as possible. They are more likely to feel comfortable in lending money to someone who is reliable, stable, and mature; someone who has regional ties and isn’t locally known for personal drama, abandoning projects, or making rash decisions.

Like any lender, they also like borrowers who have a dependable source of income and good credit, but unlike traditional lenders, these qualities can be substituted with working capital, relevant training, successful prior projects, or any other factor the lender may consider relevant.

Do you have a minimum acceptable credit score for borrowers?2019-09-21T21:11:38-05:00

The short answer is no.

The great thing about being an independent, private lender is that we have the freedom to analyze a potential borrower’s entire situation rather than having our considerations restricted to only a few specific details.

However, we do review credit score and credit history, and we factor that information in with MANY other components and credentials to make our decisions about a potential borrower’s eligibility, terms, and conditions.

What qualities are you looking for when qualifying a potential borrower?2019-09-21T21:11:38-05:00

Our lending decisions are typically based on the potential borrower’s capacity to succeed, combined with the overall likelihood of project success. We aren’t automatically scared away by flawed credit histories, low credit scores, or self-employment.

Like other private lenders, we consider all known factors about the potential borrower’s personal and professional life, plus facts and data that are known about the investment property project when making our lending decisions.

I don’t have any experience in real estate investing. Could I still qualify for a hard money loan?2019-09-21T22:00:06-05:00

Of course! Everyone starts somewhere, and we truly enjoy working with new investors. The terms and conditions of your loan may be a bit different from that of an investor that we’ve completed multiple transactions with, but we look forward to turning you into a seasoned pro.

Do I need to have a business entity to qualify for your loans?2019-09-30T14:37:28-05:00

You don’t need to have a business entity in place to qualify for a loan, however we do require our loans to be made to such an entity, whether it’s an LLC or a corporation of some type. If you don’t have one, there’s no need to worry as we will provide all the guidance you need and it’s a fairly simple task. We occasionally make exceptions to this rule, but once we explain the benefits and purposes of it, we can discuss it further. This kind of thing goes by a few different names including SPV (special purpose vehicle), and/or SPE (single purpose entity OR special purpose entity).

Do you provide real estate investment funding for foreign nationals?2019-09-30T15:09:30-05:00

Yes, we absolutely fund foreign nationals, and have worked with quite a few already!

How do I apply?2019-09-21T21:13:23-05:00

Good news: it’s easy! Just click here to apply online, which will include uploading some documents. Uploaded documents can be image files (like .jpg or .png), or they can be an Adobe PDF (.pdf) file. If you have any questions or problems during your application, feel free to contact us!

How long does it take you to respond to a new loan application?2019-09-30T14:38:09-05:00

We typically respond to a new loan application either the same day or the following day. It is always our goal to get a preliminary loan commitment to you within 48 hours of when you initially made contact with us, but sometimes this is delayed because we are waiting on documents.

What documents will I be required to provide as part of my loan application?2019-09-30T14:39:29-05:00

Our standard document requirement is very simple:

  • Loan application
  • Credit authorization
  • Purchase contract
  • Proof of funds for down payment
  • Two years of tax returns
  • Copy of government-issued ID

We may require additional documents before closing, but this is all that’s required for us to provide you with a loan commitment.

If I become a repeat borrower, will I always have to provide the same documents every time I request investment property funding?2019-09-30T14:40:19-05:00

As a repeat client, the process is super easy. Typically, repeat borrowers just send me the purchase contract and the amount they want to borrow, and almost everything else is handled by our team or the title company.

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