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 7 to 10 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 typical deal would
be 12 month financing of $40,000 to $140,000 for a single family
investment property in Ohio; however we do not have any maximum or
minimum amount.
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 insurance policy for 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. An
exception could be made for a greater Columbus are property (where we are
located).
How fast can I
receive my draw?
We can usually wire or mail you
r draw request within two days from
your phone call or e-mail
How
many draws do I get?
In
addition to the draw to purchase the home you will receive 1-4 additional draws
depending on the size of the project and your cash reserve position. In order to receive your draws, just e-mail
us
your
progress pictures.
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 single family houses. For properties
outside our normal investment areas 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 commercial projects on a case by case basis in the greater
Columbus area..
Do you just lend
in Ohio?
Yes. We lend
in greater Columbus Ohio, Cincinnati and some Dayton suburban areas.
Do
you loan on rural properties?
Generally not but would consider projects within
close proximity to greater Columbus.
Do you offer permanent
financing?
No, but we can help you secure permanent financing on your
investment properties because we have long standing relationships with
lenders.
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 and
business partners have
to sign?
Yes, all spouse and
partners will have to sign the Promissory Note and some other documents depending on how
title is taken for the property.
How is the funding secured for an investment
property purchase?
If your strategy is to sell the property once it is
improved, then in most instances we take title in one of our LLCs at the
time of purchase and do an interest only land contract back to you. When
the property sells, we deed the property to your Buyer in exchange for a payoff
of the land contract. You remain in charge of rehabbing and marketing
the property at all times.
If your strategy is to refinance the property and
hold longer term, then in most cases we take title to the property at the
time of purchase and do a interest only land contract back to you.
When the property is refinanced, we deed the property to you and
release the land contract. You remain in charge of rehabbing and marketing
the property at all times.
How
many projects
can I have with your company at one
time?
Many customers have 2 deals
or more at a 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
for your draws?
Yes, we inspect the
property before closing, and reserve the right to inspect before each
draw.
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 12 to 24 months.
Can the loan be
extended?
Yes, we offer 2 three month extensions for a fee.
How
do I get started?
Visit our
Application Process Page to get started. Call and discuss your
situation and mail in your completed application.