Hard Money Lender for Phoenix area residential properties

Hard money funding for non-owner occupied residential properties 1-4 units (no condos or land)

Investment Purchase | Refinance | Bridge Loan | Cash Out

FAST, EASY and SIMPLE

Can fund in 3-6 business days
No pre-payment penalty (up to 2 years)
Most loans are given on a No Doc or Low Doc basis
Owner-occupied purchases (no refi's) will be considered with full documentation

30% down payment required
Borrower must have a 30% cash down payment plus cash for loan fees and other closing costs

Loan Amounts: $25,000 to $500,000
Interest Rates: 12%
Loan Position: 1st only
Loan Term: 1-5 years
Loan to Value:

• Up to 80% of purchase price on an acquisition
• Up to 70% of appraised value on a refinance
• Up to 90% CLTV (10% cash down payment, 60% first position BRAD LOAN, up to 30% 2nd mortgage or 2nd position seller carry-back financing)
• Up to 100% LTV/CLTV with “Cross Collateralization"
  

Pre-payment Penalty:

• 1 Year Interest Only - No Prepayment Penalty
• 14 Month Interest Only- No Prepayment Penalty
• 2 Year Interest Only - No Prepayment Penalty
• 3 Year Interest Only - 2 Year Prepayment Penalty
• 5 Year Fully Amortized - 2 year Prepayment Penalty

Fees:

• Origination fee and Loan Discount points typically total “6” points for a one year loan, and may be adjusted upward for terms longer than a year or for other considerations.
• Minimum $3,000 combined total origination fee & discount points
• Administrative fees (i.e., loan underwriting, processing, document preparation fees, lender inspection, etc.) typically run around $1700 regardless of loan size
• All loans less than $50,000 have the same fees as a $50,000 loan

• A 14 month loan term for “appraisal seasoning” purposes. This option may help the borrower to get past a potential one year ownership requirement if you are going to refinance into a conventional loan based on “appraised value” vs your cost. For this program there is an additional upfront charge of .75 points.
• 2 -3 year loan programs are available with increased points.
• Can lend up to 80% of purchase price under some circumstances
• Can lend up to 100% of purchase price if additional property with a substantial amount of equity is used as added collateral in lieu of a cash down payment. This is called “Cross Collateralization”.
• Loan and property can be in an “entity” name such as a corporation or an LLC as long as borrower provides a personal guarantee along with entity documentation showing the borrower has the authority to borrow on behalf of the entity.
  
  

These loans are done on a case by case basis, but below is an example to give you an idea of how it works.

• Lender funds up to 80% of total of acquisition and estimated renovation costs
• Lender releases up to 80% of acquisition cost at Close of Escrow
• Lender releases remaining loan proceeds to help finance renovations at completion of renovations (to insure Lender they get completed)

Example:
Purchase Price / Acquisition cost: $60,000. Estimated renovation costs: $35,000. Acquisition cost of $60,000 plus renovation costs of $35,000 = $95,000. As long as lender is comfortable that the house will appraise for $95,000 or more after renovations, lender would provide a loan of up to 80% of the total cost, in this case up to 80% of $95,000 or a loan amount of up to $76,000.

Details of the above example:
Lender would fund the entire $76,000 loan to the Title Company at the time of purchase, but would allow the Title Company to release only up to $48,000 (80% of acquisition price) at closing toward funding the purchase. The remaining $28,000 would be released to the borrower at completion of renovations to insure to the Lender the renovations are completed since they are a integral part of the collateral. In this example, the buyer would need to come in with at least $12,000 cash down plus all loan and other 3rd party closing costs (estimated at $7,500 or so for this example). Simply put, the cash requirement of the borrower at purchase would be $19,500 or so to close on the property, and they would need to have their cash for renovations as well, and get reimbursed for the bulk of their renovation costs when the remaining $26,000 is released to them at completion of renovation. Bottom line: In this example, $60,000 purchase price + $35,000 renovation cost + $7,500 loan and closing costs = $102,500 of which $76,000 was financed.

Disclaimer: all information herein is believed to be correct, but we do not guarantee its accuracy and rely on prospects to rely only on their own investigations.