Why would I use a Private Equity (Hard Money) Lender to purchase my Investment Property?
Hard Money loans allow the investor to leverage their capital and create much higher cash on cash return from their real estate investment. Secured Investment Lending has developed a lending program for the Real Estate Entrepreneurs that are unable to purchase and renovate these properties with cash and others that want to leverage the capital they have available. The company provides the capital to purchase and renovate the property, close quickly and most importantly create high return, secure investment opportunities by capitalizing on the market conditions. Secured Investment Lending wants to help create the WIN-WIN relationship that every Real Estate Investor is looking for in today’s market.
How long does a Private Equity loan take to close?
It typically takes us 7-10 business days to fund a loan for a Real Estate Entrepreneur.
What LTV are the loans?
SILC lends up to 65% LTV of the ARV (After Repaired Value). SILC requires an appraisal, termite report, survey & home inspection to evaluate each property and determine the loan amount for the transaction.
Do I have to have the rehab money or can I finance the rehab money?
SILC funds up to 65% of the LTV and that loan amount will include the purchase price, renovation costs, & closing costs. SILC escrows all the rehab funds for the project and it will be released to the borrower as the renovations are completed by the borrower. The funds are released directly to the borrower and determined by the schedule of values that is part of the initial rehab inspection report.
How much money do I need when investing in a mortgage with your company?
As a borrower you will need a minimum of $7,500 or half of the rehab amount whichever is greater. We also want to ensure that you have enough cash reserves to carry the property throughout the entire project from start to finish.
Do I need to have good credit?
SILC does look at the credit worthiness of our borrowers. We do pull the borrower’s credit report and typical minimum credit score with our programs are a 620 or better. However, SILC will look at every scenario individually and evaluate the investment opportunity based on all the information we have.
What happens if I don’t sell the property as quickly as anticipated?
Every Real Estate Investor MUST have a back-up plan. You need to be able to rent the property out for a profit and/or refinance the property into a more tradition mortgage note. This is the exact reason why SILC reviews our borrower’s credit worthiness prior to lending money to them for their project.
What types of Properties will you lend on?
SILC lends on single-family properties and multi-family properties that are 4 units or less non-owner occupied investment property which the borrower signs an affidavit stating that. SILC also considers commercial property with an LTV of less than 50%.