Frequently Asked Questions
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?
Draw requests may be submitted online or through email. We require inspections which are done on Tuesdays and Thursdays. If there are no issues noted, funds are typically released within 1-2 days.
How fast can you close?
Typical turnaround times are 2 weeks or less. With existing relationships, I have funded within a week or less.
Do you negotiate terms?
I consider myself a relationship lender and have negotiated terms with borrowers I’ve had long-standing relationships with.