We are providing the following proposed Questions & related Answers, so potential Borrowers can become more familiar with the Loan Programs our company offers in their quest to obtain real estate financing. 

 What is a Hard Money Loan?

A hard money loan is very much like a conventional loan from the Big Banks, but with easier Qualifying Approval Standards for income, credit and property conditions.  Typically interest rates are higher, have interest only payments and shorter loan terms.  Interest rates for most Hard Money Loans range from 7% to 12% and have loan terms from “1” to “5” years.  Hard Money loans can be paid much faster than loans from the Big Banks.

Why would someone consider applying for a Hard Money Loan?

 The decision to apply and obtain a Hard Money Loan typically Based on “4” features:

  1. Credit Matters
  2. Income Matters
  3. Property Conditions
  4. Cash needed FAST 

If a Borrower has Credit, Income or Subject Property conditions that are not acceptable by the Big Banks, then a Hard Money Loan is a possible option when financing is needed.  In addition, when funds are needed FAST for a possible Business or Investment opportunity, and time is of the essence, then a Hard Money loan can provide needed funds much faster than traditional bank financing. 

How does the loan process work?

A borrower contacts our company in need of necessary funds. We then do an investigation into the borrower’s property’s equity, the borrower’s credit and income and perform an evaluation into the overall quality of the proposed trust deed investment.

What is the minimum investment amount?

Our company’s minimum investment is $25,000.00.

What will I receive in my investment package?

Our investors receive just about the same documentation that most banks and the large institutional lender receive when they offer a real estate loan. Our investment package includes:

  • Loan Application from the borrower
  • Appraisal of the property
  • Title report for the property
  • Credit report for the borrower
  • Income documentation for the borrower
  • Promissory Note-signed by the borrower
  • Deed of trust signed by the borrower
  • Complete loan document including and stated federal disclosures-signed by the borrower
  • Any additional documentation pertinent to each individual trust deed investment.

What does LTV mean?

The term means” Loan to Value”, and it’s a calculation of the total loan amount relative to the property value. We arrange trust deed investments for our investors up to 65% LTV of the property’s appraised market value.

Why is LTV important?

It is very important in confirming the trust deed investment security and equity protection. It indicates the amount of equity the borrower has in the property. The lower the trust deeds’ loan relative to the property’s market value the better is the trust deed investment’s security for our investors.

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