Commercial Property
We have made loans on commercial properties of all types, including office buildings, retail buildings, mixed use, restaurants, taverns, motels, car lots, gas stations, mini-storage, malls, industrial properties, and multi-family residential. 75% is generally our maximum LTV.
Renovation
We have worked many times with investors who buy fix-up properties and re-sell. We can generally loan up to 75% of the projected value of a project. In many situations, we can arrange for the financing of the renovation budget as well.
REO Property Acquisition
We are frequently able to arrange financing for 100% of the purchase price of such properties. The essence of our REO acquisition program is as follows:
We loan up to 75% of value (frequently 100% of purchase price). We are looking for situations where the borrower is buying well, and has a solid plan for completing the project. On many occasions, we loan the fix-up money as well. (This involves disbursing the money as the work is completed, as with a conventional construction loan.) Loans are for one year, and payments are interest only. There is a 3-month minimum interest guarantee (no long-term commitment). We generally close within less than two weeks, and can close a loan in less than one week to accommodate a rush situation.
Raw Land
We will loan on any raw land (i.e. land without infrastructure/utilities) that qualifies as buildable. This includes both commercial and residential zoning, urban and rural, and anything from 2,500 square feet to 5,000 acres. For undeveloped land, we can generally lend 70%, but we occasionally go higher under the right circumstances.
Lots and Acreage with Utilities
Though the banks seem to be hesitant about loaning on developed land (lots or acreage), we are generally eager to do this type of loan. As much as 25% of all the loans we do fall into this category. Our maximum LTV on developed land is 75%.
Agricultural Properties
We have arranged loans for a variety of agricultural and ranch properties. We are a bit more conservative regarding LTV for properties of this sort, with our maximum being about 65%.
Construction
We tailor our construction loan programs to meet individual contractor needs. Though more expensive than traditional bank financing, we are more flexible regarding many issues, and have had many contractors return to utilize our construction loan services repeatedly. Our maximum LTV for construction is 75% of the value of the completed project.
Floating Homes
We understand the unique issues related to borrowing either to refinance or purchase a floating home. We have loaned money on floating homes that don't fit the bank's strict criteria, and we have frequently loaned money for the upgrade or expansion of an existing floating home. Our maximum LTV for floating homes is 75%.
Manufactured Homes (O/O private land)
We are not terribly concerned about the year or model, or whether the home is a single-wide or double-wide, but the home must be on owner-occupied land. We look at the whole package, home and land, and if the value is there, we can make the loan. Our maximum LTV on manufactured home/land packages is 75%.
Seconds on Investment and Commercial Properties
These are RARE and generally short-term scenarios, ranging from six months to one year. Our maximum CLTV is 70%
Foreclosure Bailout
If there is a good explanation as to why the foreclosure situation occurred and what has changed to remedy the problem in the future, and if the LTV does not exceed 70%, we are frequently able to refinance properties out of foreclosure.
Cash-Out Refinances
Frequently our borrowers will refinance a property with the intention of pulling cash out. This cash might be used to consolidate bills or to initiate some sort of a project. We can loan up to 75% LTV on cash-out refinances.
Seller Carry-Backs
A common scenario for us is a borrower that might be relying on a seller to do a partial carry-back, with our lender going in first position. In this case, the borrower may be coming to escrow with little or no down payment, or in fact, may be pulling cash out of escrow. In these scenarios, we can obtain financing up to 75% LTV and a maximum of 120% CLTV.
Bridge Loans
Many of our borrowers need short-term solutions, without painful pre-payment penalties. We recognize that private-money is often a short-term solution, and strive to offer reasonable solutions for borrowers needing the money for as little as 3 months.
Fast Closings
We generally require about two weeks to do a loan, but will do EXPRESS closings in one week or less. We charge an extra point for this service, but can generally succeed as long as we have the full cooperation and support of the borrower.
"The SUBMISSION PAKAGE"
• Cover sheet describing/summarizing parameters of loan
• Residential loan application (1003) or equivalent and PFS(MUST BE SIGNED BY BORROWER)
• Current tri-merge credit report (We will pull report)
• Trio of subject property (or other type of detailed spec summary)
• A good comp set, appraisal, or some other objective and transparent case for value
• Photo(s) (if not included in an appraisal)
• Preliminary Title Report(s) for all properties
• Payment history on all loans encumbering the subject property (or properties)
• Payoff quote on present loan(s)
• Company financials (income statement and balance sheet)
• Valid executed earnest money agreement (contract to purchase)
If credit history is rough
• Explanation of circumstances
• Supporting documentation to show status of resolved items
If raw land or builder ready lots
• Supporting documentation (government correspondence/code) to address development plan and demonstrate likelihood of completing development according to plan
• Copy of zoning documentation and explanation of possible land uses
• Description and status of utilities and access to the lots
• May want signed affidavit from Borrower regarding completion status of lot(s)
If leased land
• Copy of lease on land (or usage permit)
If 2nd or subordinate position loan
• Copies of notes and Deeds of Trust for all superior loans
• Payment histories and statements for all superior loans
• Payoff statements for all superior liens
If construction/rehab loan
• Summary of project
• Builder credentials
• Copy of contractor's License, bond and insurance
• Detailed line item budget
• Supporting documentation to backup detailed line item bids/estimates
• Plans (if floorplan is new or changing)
• Copies of permits already obtained
If Income Property
• Copies of all leases and rental agreements pertaining to the property.
