What are the benefits of using a "Private Money Lender"?

One of the main benefits is the speed in which we can close a transaction.  If you have a great buy, you don't want to spend a month or more trying to get traditional bank financing.  We close all loans in 5 business days.  Also, banks and mortgage lenders may not make loans on distressed properties due to restrictive regulations and other factors.  In cases where they do make loans the loan may not include money for repair cost, and is likely to be a percentage of the purchase price leaving the investor short of necessary funds. 

Do I get repair money with Ohio Rehab Loans?

Yes, we always include the repair costs into our loan.    

What is the typical deal ?

A usual transaction in Ohio and surrounding states is between $20,000 and $200,000; however we do not have any maximum or minimum loan. 

Are you willing to finance deals for a borrower/investor who does not have the cash reserve/credit score to obtain rehab financing or someone who is looking to share the risk?

we now offer a profit sharing program to provide an opportunity for investors under these circumstances.

Is there a prepayment penalty? 

No, there is never a prepayment penalty.  We encourage early payment.

What are your insurance requirements?

We require a prepaid one year insurance policy for at least the amount of the mortgage.  We will normally collect the premium on the HUD and pay the insurance Agent directly. The policy should cover "vacant property in need of repair" vs. a standard Landlord Policy which assumes the property is rented.   

What is your policy on an out of state borrower?

If the borrower lives in a different state than the property we require a co-signer who resides in the city where the property is located.

How fast can I receive my draw?

We can usually wire or mail you a check within two days from your phone call or e-mail

How many draws do I get?

What is the interest rate?

The interest rate is going to vary depending on your credit, the property condition, location, and the difficulty of the project. We offer competitive rates.  All our loans are tied to the published Prime Rate.

What Loan to Value ratio do you use?

We will loan up to 70% of the After Repair Value of the Property for most Ohio 1-2 family properties. For out of state properties or unusual circumstances the loan to value may be less.

Do you make commercial loans?

The majority of our loans are on single family residential rehab projects.  However, we do consider loans on multi-family dwellings.

Do you just lend in Ohio?

We will consider loans in other states.

Do you loan on rural properties?

Yes, we lend on rural properties. 

Do you offer permanent financing?  

We can help you secure permanent financing on your investment properties.

How long does it take to get approved?

We have next day approval following the receipt of a Completed Application.

How long does it take to fund a loan?

We can fund our loans within 7 to 10 business days since we lend our own money and do our own appraisals and underwriting.  In some instances we can accommodate a faster close.

Can I title the property in an LLC, a trust, or a corporation?  

Yes, we allow that flexibility in our loan program.  However, you will have more refinancing opportunities if the home is titled individually.

If I am buying the home in a business name, do I have to personally guarantee the note? 

Yes, although we offer the flexibility of titling the property in a Trust or business entity, we require a personal guarantee on our transactions. 

Will my spouse have to sign? 

Yes, your spouse will have to sign the Promissory Note and some other documents depending on how title is taken for the property. 

How is the loan secured? 

The loan is secured by a Promissory Note and first Mortgage. A Quit Claim Deed is also held by the lender as additional security.  We may also require in some instances a security position on some rental property.   

How many loans can I have with your company at one time?

Many customers have 2 loans at a time, and some have several at one time.  Exactly how many will depend on your cash reserves. We are open to multiple loans if you have the financial ability and a proven track record.

How much will my payments be?

The payments will be lower because they are interest only payments.  To figure your monthly payment, simply multiply the interest rate by the loan amount and divide that number by 12.

Do I need a survey?

We will waive the survey for a survey waiver fee, if there appears to be no encroachments.  Also, we would accept any survey performed in the last year. 

Do you require inspections?

Yes, we inspect the property before closing, and reserve the right to inspect before each draw.  By submitting progress pictures via e-mail we can waive the inspection and immediately mail a check or wire the draw funds to your bank account.  

Do I need an appraisal?

No. We do our own valuation estimates. However, any past appraisals, comps and pictures you provide will help speed up the closing and assist in arriving at an accurate appraisal. 

How long is your normal rehab loan?

Our normal rehab loan is 6 months.

Can the loan be extended? 

Yes, we offer 2 three month extensions for a fee.  Longer term notes may be discussed in advance.

How do I get started?