Small Balance Residential and Commercial Funding

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We can usually give you a firm quote or a term sheet shortly after submission and review of the following items:

1. Brief overview of the loan request (loan amount requested, address or APN#, purpose for hard money loan vs. traditional loan, etc.)
2. Interior & Exterior Pictures of the subject property
3. A concise narrative description of the subject property (i.e. property type, year built, occupancy, square footage, # buildings/stories, acres, unit mix, etc.)
4. Explanation of Sources & Uses of funds, including any relevant budgets and a pro forma, if applicable
5. Details of Exit/Repayment Strategy
6. Principal’s background (resume or bio) including a Balance Sheet/Net Worth Statement for each Principal/Guarantor
7. Copy of Title Report
8. Copy of Purchase Contract or last (HUD) Settlement Statement, if applicable
9. Current Market Analysis and copy of existing appraisal reports and any other existing third party report (Environmental/Engineering) if available
10. Any other relevant information.

Loan Basics:
Acquisition/Refinance Loan Program:

• Nationwide lending
• Fast Closings in about 7-10 days for deals in CA and 10-15 days or so outside of CA
• Loan terms are for 12 to 24 months (extension options available)
• Loan Amount from $250,000 to $3,000,000 – up to $5,000,000 for very select deals
• Max LTV up to 70% (never 100% financing of Purchase Price)
• No min credit score
• We do not require appraisals or other 3rd party reports for most property types
• Lender Origination fees between 4 and 6 points
• Interest rates range from 14% to 16% (Interest-only payments)
• No pre-payment penalty

Construction/Rehab Loan Program:

• Same criteria as standard Loan Program:
• Initial distribution of loan proceeds not to exceed 50%-70% of the effective Purchase Price/As-Is Value (less all closing costs and prepaid interest)
• Lender controls all construction funds and releases funds to borrower based on a Draw Schedule
• Additional phases of funding can be up to 100% of all other costs
• Total loan amount not to exceed 60% to 65% LTV on the future value upon completion of improvements