Underwriting a Construction Loan with Hard Money
Thursday, February 26
1. Executive Summary It’s just two or three paragraphs about the project and about yourself and about the partners involved Loan request amount - are you requesting a million dollars? What the purchase price of the lot or the land or the estate is. Or if you already own it and how much money y...
What is Hard Money?
Wednesday, February 25
Hard money loan is basically lent on the equity in a property.Some will lend to 70% of the purchase price, others will lend to the after renovated value. When it’s fixed up, they’ll lend up to 70%. So there’s all different loan to value ratios that we lend on for a hard money loan.a business purp...
How Do Construction Loan Draw Work with Private Money Lenders?
Tuesday, February 24
How Construction Loan Draw Work with Private Money LendersIt’s just much like a conventional construction loan1. We ask for a line item budgetLine item budget - line by line item of the cost of the loan, including the soft costs—architectural, permits, etc.2. from your line item budget, we crea...
Appraised Versus Current Value Advantages
Monday, February 23
Appraised Value versus Current ValueAdvantages of Appraised Value“What is the advantage of working with a fund like yours that works off the future of appraised value, versus going off the current value?”Example:Let’s say you’re building a spec house that’s three thousand square feet. And when it...
How Are These Gap Loans Structured?
Friday, February 20
Gap loansAre structured. Are usually a second deed of trust behind a first deed of trustA traditional private money loans goes 65-75% of the purchase price; the gap funds would come in as a second deed of trust behind that first lienusually either a private money lender—an individual is good for...
How Are Investors Using Construction Loans to Acquire Properties with
Wednesday, February 18
How Are Investors Using Construction Loans to Acquire Properties with Hard MoneyTechniques:Two-prong approach1. an acquisition loan2. constructionClosing techniquesExample:Let’s just say it’s a three bedroom one bath home and your goal is to add a thousand square feet and convert it to a four b...