What is private or hard money lending?
Private lending are direct loans made to nontraditional borrowers or properties that are unable to secure bank financing. These loans are secured by the asset itself, so called asset-based loans, and generally require loan to value (LTV) ratios of 60% or less.
Nearly all private loans are in first lien position and are not made on any owner occupied or primary residence homes.
What is the process?
Prospective borrowers should provide a brief summary of the loan outlining the amount requested, the value of the collateral, the exit plan and any other important information. We will then ask you to complete a loan application 1003 (link) and then an inspection/appraisal of the subject property and any collateral. We do our inspection/appraisal in-house to expedite the process.
If approved, we will have our attorney draft the note and mortgage and then arrange the closing. A checklist will be provided (link) for additional loan requirements prior to closing. The entire process can take 7 days or less.
What are the fees and interest rates?
Our origination fees are 5-8% of the loan amount and the interest only rates are between 12-20%.
What are your loan parameters?
We provide minimum loans from $50,000 up to $5 million in South Carolina, North Carolina, Georgia and Florida. We do not provide loans on primary residences. Most loans are 6-24 months.