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Hard Money Lending In Galveston TX

Hard Money Lending In Galveston TX

 

What Type of  value-add properties do you finance?



  • 5+ Unit Multi-Family Properties

  • Warehouses

  • Self-Storage Facilities

  • Mixed Use

  • Hospital, SNF and Behavioral Health Facilities

  • Mobile Home Parks



 

What Is The Max Loan to Value?

For  Purchases:  We Cover 100% of the Total Cost  or 75% of the Stabilized Value. We also include 100% Renovation Cost, Closing cost, Origination Fee and 6 months reserves in the loan amount.



For Equity Cashouts: We Lend 75% of the Stabilized value (Cashout Funds must be used towards renovation and repairs)



 

Is The Stabilized Value The Same As After Repair Value?

NO!  The Stabilized Value Is The Value once the renovations are completed AND The property is fully leased and generating income. The Stabilized Value is always higher than the After Repair Value. We use a MAI Appraiser to determine the stabilized value.



What are 6 months reserves?

Interest payments that are held in escrow for the first 6 months of the loan term. Interest  Payments will be rolled into the loan amount and held in escrow and released each month until the reserve period ends.  The borrower will not have a monthly payment until the 6 month interest reserves end.

 

What Is The Interest Rate and Loan Terms?

Loan Amount:  $1M – $10M

Rate: 10 – 12%

Term: 12 Months with option to extend for 6 months.

Origination Fee:  7 points Rolled into loan amount (Not paid out of pocket) $10,000 Expense Deposit REQUIRED for 3rd party cost such as: Appraisal, Environmental, Site Visit,Legal and Attorney Fees. Expense Deposit is Due AFTER acceptance of Final Commitment.(Any Unused funds are refunded to borrower at closing shown on settlement statement) * To provide transparency, expense deposit can also be made in person at our local office shown on the term sheet*  

Can I use my own appraisal?

Absolutely

 

 

What Are The  Requirements:

1)  Borrower or any principal on the loan MUST have managed, owned or operated atleast 1 similar property type being purchased

2.) Borrower or any principal on the loan MUST show liquidity to make monthly payments after 6 months interest reserves ends.(Must Show atleast 2% of the total loan amount in liquidity  OR Subject property income must service monthly payments)

3.) Borrower MUST have a very strong exit strategy to payoff the bridge loan within 12 months or within the extension ( Bank commitment letter or in progress)

4.) Property Must Be Under Contract

 

How do I Apply or Speak With A Loan Specialist:

Apply Here

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