Frequently Asked Questions
No. We are a commercial lender.
Generally, our loans close within 30-45 days.
Our borrowers experience ranges from no real estate experience to extremely experienced. We offer tailor-made loan programs to fit the needs of all real estate investors. Please refer to our Product Tear sheets in our online document library.
Yes. Because we are a commercial lender, you will need a Special Purpose Entity (typically a Limited Liability Corporation, or LLC) for your loan. We will provide guidance if you do not have one since it is a very easy process.
Our Rental Loans are for stabilized rental properties. Typically, this means that nearly all homes are leased or in the process of being leased when the loan closes. Several of our borrowers take advantage of our Bridge Loans to purchase aggregate properties until they are mostly leased and can be financed with a Rental Loan. We will make exceptions on purchases only on our Rental Loan and Multifamily Term Loan program.
In general, on our Bridge Loans we do not have a minimum credit score threshold. Instead, we look at a borrower’s overall credit profile, track record, liquidity and economics of the deal itself. Our Multifamily Term Loan Program requires specific credit scores. Please refer to our Product Tear sheets in our online document library.
Yes, we offer both recourse and non-recourse loans. Recourse loans are guaranteed by the individual or operator. Non-recourse loans are secured only by the underlying real estate of the borrower, with certain exceptions such as such as fraud and bankruptcy.
The debt service coverage ratio (DSCR) is the relationship of a property’s annual net operating income (NOI) to its annual mortgage debt service (principal and interest payments). For Rental Loans, we use DSCR to determine how large of a loan can be supported by the cash flow generated from a borrower’s portfolio. Please refer to our DSCR calculator in our Document Library to determine if your loan meets our DSCR requirement.
Most of our Rental Loans amortize based on a 30-year schedule. We also have Interest Only options available.
We require a minimum of 3 properties. We also offer a single asset rental loan on individual properties.
For Rental Loans or Multifamily Term Loans, we require reserves for (PITI) which is Principal, Interest, Taxes, Insurance. If there is an Association, you will need to add that to the calculation. Multifamily and Commercial Loans also require Capital Expenditures.
Generally, no but it is a case-by-case basis.
You will need to provide an Application, Resumes of each Principals, Executive Summary, Organizational Chart, Operating Agreement, 3-Year Proforma, Sources and Uses of Funds , Financial Statements and any other relevant supporting documentation of the project.
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