Frequently Asked Questions
Do you negotiate terms?
I consider myself a relationship lender and have negotiated terms with borrowers I’ve had long-standing relationships with.
How does Loan to cost vs loan to value work?
Loan to value is based on the ARV, while Loan to Cost is based on a percent of the cost of the project.
What credit requirements do you have?
I pull credit but it is only one factor – the loan to value, cash in the bank and experience also play a big role. That’s the nice thing about being a relationship lender – it allows for explanation/review of individual circumstances.
How much money do I need to flip?
Typically, I advise people to have at least 3-4 months of interest reserves on hand and a 20% contingency reserve based on the size of the rehab budget.
Do you finance repairs/closing costs?
Repairs are financed 100%. Closing costs are paid upfront.
What insurance requirements do you have?
I do require all properties to be adequately insured based on the loan amount. Flood insurance will also be required if properties are in a flood zone.
How are draw requests processed?
I consider myself a relationship lender and have negotiated terms with borrowers I’ve had long-standing relationships with.
How fast can you close?
Typical turnaround times are 2 weeks or less. With existing relationships, I have funded within a week or less.