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?
In
addition to the draw to purchase the home you will receive 1-8 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 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?
Visit our
Application Process Page to get started.